AI Strategy for Small Business: What to Do First

Part 3 of the AI Strategy for Business Growth Series

Introduction: Don’t Just Add AI—Apply It With Purpose

If you’ve made it this far in the series, you already know that having a proper AI strategy for small business is about more than just downloading a few shiny tools. It’s about solving the right problems, in the right order, with the right tech.

But here’s where many small businesses get stuck:

“What should I do first?”

That’s what this article is here to help you with. Instead of rushing into automation or experimenting randomly, we’ll walk through a simple way to prioritise your AI efforts. You’ll learn:

How to identify high-impact, low-effort wins
Which AI ideas can wait (or be skipped entirely)
A practical example of how this works in the real world

If you missed Part 2, start there: Business Problems AI Can Solve

Link to Part 2: Business Problems AI Can Solve

Why Prioritisation Is Critical in Your AI Strategy

AI can do a lot—but that doesn’t mean you should try to do everything at once. Solopreneurs and small businesses have limited time and budgets. The smartest strategy isn’t to adopt AI broadly—it’s to apply it strategically.

Without prioritisation, you risk:

Wasting money on tools that don’t solve urgent problems
Overloading yourself or your team with change
Missing out on quick wins that build momentum

By contrast, when you focus your AI strategy, you:

Start seeing results sooner
Gain confidence in your tech choices
Learn from small experiments before scaling

The Impact vs Effort Matrix (Your New Best Friend)

To make smart decisions fast, I recommend using the Impact vs Effort Matrix. It’s simple—and powerful.

1. High Impact, Low Effort – START HERE

These are quick wins. They deliver big value without needing complex setup or technical skills.

Examples:

– AI chatbot for answering FAQs
– Automated invoice reminders
– AI-assisted email replies using ChatGPT

2. High Impact, High Effort – PLAN FOR THESE

Worth doing, but they need time or investment. Often Phase 2.

Examples:

– Predictive sales forecasting using AI tools
– Custom lead scoring systems
– AI content generation integrated with your CMS

3. Low Impact, Low Effort – OPTIONAL

Not harmful, but don’t expect miracles. Try only if you’re curious and have spare time.

Examples:

– Fun AI art tools
– Auto-generated blog outlines
– Meeting transcription bots

4. Low Impact, High Effort – AVOID THESE

These suck up time and money with little return.

Examples:

– Building your own AI model (yes, even with tutorials)
– Automating a rarely used task
– Investing in AI before your business problem is clearly defined

Mini Case Study: The Digital Bookkeeper

Maria is a self-employed bookkeeper.
She wanted to “use AI in her small business” but didn’t know where to start. She mapped out her weekly tasks and used the Impact vs Effort matrix.

Quick Win:

She realised she was spending hours emailing clients for missing documents. So she:

– Created a 3-step email sequence using ChatGPT
– Automated it through her accounting platform

Result: Saved 3+ hours per week and improved client response time.

High Effort Goal:

She plans to use AI later to analyse client spending trends and suggest tax savings. But that’s on the roadmap—not today’s priority.

Maria the bookkeeper, sitting at her desk, paperwork all around her, thinking about automating her tasks

3 Common Mistakes to Avoid

1. Following Hype, Not Strategy

Just because another business is using an AI tool doesn’t mean it’s right for you. Start with your pain points.

2. Trying to Automate Everything

AI should assist, not replace. Keep the human element where it adds value—like customer relationships and decision-making.

3. Skipping the Experiment Phase

You don’t need perfect solutions on day one. Test small. Iterate. Learn.

How to Apply This in Your Business

List your top 5 time-consuming tasks
– Where do you lose hours each week?
Map them using the Impact vs Effort framework
– What’s high-impact AND easy to improve?
Choose 1 task and explore AI tools that solve it
– We’ll dive into tool selection in the next article
Test it for 1–2 weeks
– Track results: time saved, better output, lower cost?

Conclusion: Strategy First, Then Tools

Your AI strategy for small business should always start with clarity. Know what you want to improve. Prioritise what will give you momentum.
Then—and only then—go looking for the right tools.

Coming Next:
Choosing the Right AI Tools for Your Small Business – Without Wasting Time or Money

Ready to See How Prepared You Are?

If you haven’t already taken my free AI Readiness Quiz, now’s the time. In just 3 minutes, you’ll discover how ready your business is to benefit from AI—and what to focus on next.

Link to the FREE AI Readness Quiz

AI Strategy for Small Business: What to Do First (And What to Avoid)