How AI can help small business owners really kick some serious ass
In this blog, we’ll break down how small businesses can utilize AI to streamline their operations, boost efficiency, and save time.
To make things super practical, we’re going to tailor this guide around a specific example: a small retail shop that sells handmade goods from local artists and also has an online store that ships across the U.S.
However, no matter what type of small business you own, these AI tools can help take your business to the next level—and most importantly - without breaking the bank!
✉️ Newsletter & email generator
Current problem: Writing newsletters takes up valuable time, and small business owners often struggle to create engaging content consistently. Without regular updates, customers may forget about the store, leading to fewer repeat sales.
How AI helps: AI can quickly generate compelling emails, suggest subject lines, and personalize content to keep customers engaged and coming back.
Example prompt: "Generate a friendly and engaging email announcing our new spring collection of handmade pottery. Make it warm, inviting, and include a 10% off promo code for first-time buyers."
AI tools to try:
📅 Creating schedules & task management
Current problem: Juggling multiple responsibilities—inventory, shipping, customer service—can lead to forgotten tasks and last-minute chaos.
How AI helps: AI can automate scheduling, send reminders, and help prioritize tasks so that no part of the business gets overlooked.
Example prompt: "Create a weekly schedule for a small handmade retail shop that includes inventory restocking, social media posting, and order fulfillment."
AI tools to try:
💰 Financial management
Current problem: Many small business owners lack the time or expertise to track expenses properly, leading to overspending or cash flow shortages.
How AI helps: AI can analyze financial data, generate reports, and predict future sales to help business owners make better financial decisions.
Example prompt: "Analyze my last 6 months of sales and give me a forecast for the next 3 months, considering seasonal trends."
AI tools to try:
📱Social media management
Current problem: Keeping up with social media is time-consuming, and creating fresh, engaging posts regularly can be overwhelming.
How AI helps: AI can generate captions, suggest hashtags, and schedule posts to maintain consistent online engagement.
Example prompt: "Create an Instagram caption for a new collection of handmade jewelry, targeting eco-conscious buyers."
AI tools to try:
🤖 Customer support (even while you sleep!)
Current problem: Answering the same customer questions over and over is time-consuming, and delays in response time can result in lost sales.
How AI helps: AI chatbots can provide instant answers to common customer inquiries, reducing the need for manual responses.
Example prompt: "Set up a chatbot that can answer questions about shipping, returns, and custom orders for our online handmade goods store." (You might need a developer who help you out here, or use chatbot software.)
AI tools to try:
Note: Many CRM and ticketing systems offer this as a built-in feature. Therefore, the need for a separate customer support chatbot might be unnecessary. (See below for CRM suggestions)
📦 Inventory management
Current problem: Many small businesses either overstock or run out of popular items due to poor inventory tracking.
How AI helps: AI can track inventory levels, predict restocking needs, and prevent stockouts or excess inventory.
Example prompt: "Analyze our sales history and tell me when we’re likely to sell out of our best-selling handmade candles."
AI tools to try:
Note: If you have an online web shop, you should have this feature built-in. Therefore, additional inventory management software would be unncessary. Speak with your current provider (for example, Shopify), to find out how to manage your inventory directly through their platform.
🌐 Website optimization & content generation
Current problem: Writing product descriptions and optimizing for SEO can be difficult and time-intensive. Poorly written descriptions can hurt online sales.
How AI helps: AI can create SEO-friendly product descriptions and suggest website improvements to boost online conversions.
Example prompt: "Write a compelling and SEO-friendly product description for a handwoven macrame wall hanging."
AI tools to try:
📈 Forecasting trends & market conditions
Current problem: Without access to market data, small businesses struggle to anticipate product demand and customer preferences.
How AI helps: AI can analyze trends and predict what products or styles will be in high demand.
Example prompt: "What handmade home decor trends are expected to be popular in 2025?"
AI tools to try:
💖 CRM (Customer Relationship Management)
Current problem: Tracking customer interactions manually is inefficient, making it hard to personalize communication and drive repeat business.
How AI helps: AI-powered CRM tools can segment customers and provide insights into purchasing behaviors for personalized outreach.
Example prompt: "Suggest a loyalty rewards program for customers who have made at least three purchases in the past year."
AI tools to try:
Note: If you’re using CRM software, they might have a built-in email marketing feature. Therefore, you wouldn’t need a separate product for email marketing. Be sure to ask your current CRM provider if they offer this.
🏷️ Competitive analysis & pricing strategies
Current problem: Small businesses often struggle to set competitive prices without undervaluing their products or losing customers to cheaper alternatives.
How AI helps: AI can analyze market pricing trends and competitor strategies to suggest optimal pricing.
Example prompt: "Analyze the pricing of similar handmade ceramic mugs on Etsy and Shopify. Suggest a competitive price range for my products that balances profitability and market demand."
AI tools to try:
ChatGPT (free version) (for pricing research and market insights)
Price2Spy (for competitive price tracking)
Ecomdash (for dynamic pricing recommendations)
Final Thoughts
AI isn’t just for big corporations—it’s a game-changer for small businesses, especially for retail shops selling handmade goods. Best of all, many of these tools are free or offer affordable plans! The key is to start small, test what works, and let AI take some of the workload off your plate so you can focus on what you love—creating and growing your business. 🚀
