You Do Not Need an MBA to Write a Business Plan
Starting a contracting business is intimidating enough without the paperwork. Most new contractors either skip the business plan entirely or pay someone thousands of dollars to write one they never look at again. Neither approach is great.
Malcolm MacInnes of MGM GC talked on the First Shift Podcast about how he used AI tools to help him think through his business decisions. He did not use ChatGPT as a magic answer machine. He used it as a thinking partner, someone to bounce ideas off, challenge assumptions, and organize scattered thoughts into something structured.
That is exactly how new contractors should approach AI for business planning.
What ChatGPT Can Actually Help With
1. Market Research
Before you invest your savings into a business, you need to know if there is demand. ChatGPT can help you:
- Identify your target market. "Who are the typical customers for a residential painting company in [your city]?" You will get demographic information, common project types, and pricing expectations.
- Analyze competition. "What are the top 10 painting companies in [your city] and what do they charge?" While ChatGPT may not have hyperlocal data, it can give you frameworks for researching competitors and benchmarking your pricing.
- Spot market gaps. "What services do residential painters commonly overlook?" This can reveal niche opportunities like cabinet refinishing, deck staining, or commercial touch-up contracts.
2. Financial Projections
New contractors often guess at their numbers. ChatGPT can help you build realistic projections:
- Startup cost breakdowns. "What are the typical startup costs for a residential electrical company?" You will get a categorized list: licensing, insurance, tools, vehicle, marketing, working capital.
- Pricing models. "How should I price residential electrical work in a mid-size Canadian city?" Get frameworks for hourly rates, project-based pricing, and markup calculations.
- Break-even analysis. "If my monthly overhead is $8,000, how many jobs do I need at an average of $2,500 to break even?" Simple math, but ChatGPT can walk you through the full calculation including taxes and variable costs.
3. Business Structure Decisions
- Sole proprietorship vs. incorporation. "What are the pros and cons of incorporating my contracting business in British Columbia?" Get a plain-language comparison that helps you decide before you talk to an accountant.
- Insurance requirements. "What insurance does a general contractor need in [your province or state]?" Get a checklist you can bring to an insurance broker.
- Licensing and permits. "What licenses do I need to start a plumbing business in [your area]?" AI gives you a starting point; always verify with your local authority.
4. Marketing Strategy
- Website copy. "Write a homepage for a new HVAC company in Calgary that emphasizes 24/7 emergency service and transparent pricing." You will get a solid first draft you can customize.
- Google Business Profile optimization. "What should I include in my Google Business Profile description as a new roofing contractor?" Get specific, actionable advice.
- Social media content ideas. "Give me 20 Instagram post ideas for a residential renovation contractor." Instant content calendar.
5. Standard Operating Procedures
- Client onboarding processes. "Create a step-by-step onboarding process for a new residential construction client." Get a template you can immediately implement.
- Job site checklists. "What should be on a daily job site safety checklist for a framing crew?" A solid starting point that you customize for your operation.
- Employee handbooks. "What should a small contracting company include in an employee handbook?" A structural outline with the key sections covered.
How to Get Better Answers from ChatGPT
The quality of AI output depends entirely on the quality of your input. Here are tips for getting useful results:
Be specific about your situation. "I am starting a residential painting company in Victoria, BC, with $15,000 in savings and five years of experience as a crew lead" is much better than "help me start a painting business."
Ask for frameworks, not just answers. "Give me a framework for deciding whether to buy or lease a work van" teaches you how to think about the decision, not just what to do.
Challenge the output. "What are the weaknesses in this business plan?" or "What am I not thinking about?" AI is great at playing devil's advocate when you ask it to.
Use it iteratively. Start broad, then drill down. "Give me a business plan outline" followed by "Now expand on the marketing section" followed by "Now create a 90-day marketing action plan" builds something comprehensive without overwhelming you.
What ChatGPT Cannot Do
Let's be honest about the limitations:
- It does not know your local market intimately. Always verify pricing, regulations, and competitive information with local sources.
- It is not a lawyer or accountant. Use AI to prepare for those conversations, not replace them.
- It cannot replace experience. AI can help you plan, but the actual work, building relationships, managing crews, delivering quality, requires showing up and doing it.
- It does not know what it does not know. Always cross-reference important decisions with real-world sources.
Malcolm's Approach
What stood out about Malcolm's story on the First Shift Podcast was his practicality. He did not treat AI as a silver bullet. He treated it as a tool that saved him time on research and planning so he could spend more time on the work that actually builds a business: relationships, reputation, and results.
That is the right mindset for any new contractor. AI is the best free business advisor you have ever had access to. Use it that way.
Your First Assignment
Open ChatGPT or Claude right now and type: "I want to start a [your trade] business in [your city]. I have [your budget] in savings and [your years] of experience. Help me build a 90-day launch plan." Then spend the next hour refining the output with follow-up questions.
If you want hands-on help building AI tools into your new contracting business, book a discovery call.