How I’m Starting from Scratch to Build a Million Dollar AI Startup
I want to attempt creating a multimillion-dollar AI firm from the ground up, documenting each stage as I go. Together, we may be able to produce something really amazing. Starting a business from the ground up may be very time-consuming and hazardous, and I might lose all of my money. However, the payoff can be huge if I do it correctly. In order to show that I’m not just another one of these talkative businesspeople looking for hits, I truly want to give this a shot and quiet my critics from past ventures.
I’m taking on this challenge to definitively demonstrate whether or not the AI boom is just hype or if regular people like us can really profit from it. For those of you who are unfamiliar, I am a self-made serial internet entrepreneur from New Zealand who now resides in Dubai. I’ve established profitable online shops, my own digital marketing firm, and an AI software development and consulting business in the last five years. For complete transparency, this is my background.
My Resources and Experience
Now, bear in mind that I have never previously created my own AI company. Through my programming firm, I have only ever created AI apps for my customers. On the other hand, I will be using my own group of AI developers for this project. I’ll also be making use of any resources or contacts I may find via my own network and internet presence.
The Rules of the Challenge
Every task requires a unique set of guidelines. Resources first: Can my own development team be used? What connections can I utilize, and what is my budget? As previously said, I will be using my own team of AI developers as part of this challenge, in addition to whatever resources or contacts I may be able to use.
Second, the valuation method: How will I determine the startup’s worth and how will I know when I’ve succeeded? Revenue and multiple-based value are our two choices. Revenue is really simple: we win if we reach a million dollars in sales. The 8X valuation guideline for companies with recurring revenue may be applied to multiples. For example, we may suppose that a firm is worth a million dollars if it generates $120,000 in pre-tax recurring income annually.
Lastly, time: This project will continue until we either achieve our goals or have invested enough time and money to declare with confidence that the current AI bubble is nothing more than hype.
Selecting the Business Model
Once these guidelines are established, we may begin formulating our strategy. First, we must choose the kind of company we want to establish. An AI-powered SaaS (Software as a Service) provider is the most apparent option. SaaS is a very strong and contemporary business model; Spotify, Netflix, and Shopify are just a few clear examples.
There are many reasons why the SaaS business model is so effective. First of all, developing software is usually a one-time event. The cost of distributing the program to thousands or hundreds of thousands of users is almost negligible after it has been developed, which enables some hefty profit margins. Second, SaaS companies are often based on subscription models, which means that every month you get a steady income from every single client.
B2C against B2B
A bit further investigation reveals that SaaS firms may be further subdivided. Business-to-consumer (B2C) companies, such as Spotify, have a big market and often inexpensive membership fees. Or you have business-to-business (B2B) software as a service (SaaS) firms like Shopify, who often charge more for their services and sell to other organizations that have money to spend.
In this task, which of these is better for us? We have to take into account that AI is developing so quickly at the moment that once-valuable companies are becoming commodities practically immediately. All of this is due to AI’s dark little secret, which not many people are aware of: You are being duped by 90% of your favorite AI tools and services. The essential functionality of the majority of these products may be constructed in a few days or even hours, despite their pretense of having a sophisticated AI system and algorithm that took months to develop.
The Value of Personal Information
All right, then why is this important to us? Thank you for asking. To succeed in this endeavor, we must stay away from things like these. Due to their ease of replication, these technologies will eventually fail and never generate any significant revenue. Therefore, we must be searching for market segments that are shielded from rivals if we are to overcome this obstacle and create a worthwhile and long-lasting company.
Adding a private data component to our company is one method we can do this. We may use our customers’ data or our own data for this. We will be able to outperform these imitation companies by incorporating this secret sauce into our operations.
Locating the Correct Information
Our current issue is where to get this info. Usually, who has a large pile of data laying around? You’re correct, companies! Businesses most likely have some kind of data for anything from sales to customers to websites. Additionally, we may utilize that data to modify our product, making it more valuable and long-lasting in this competitive industry. There you have it. Our goal is to establish a B2B AI SaaS business.
The Methods of Research
Now that I’ve cleared it up, I have a ton more research to complete. I’ll get back to you as soon as I get our breakthrough idea. I thus searched far and wide on the internet for my golden ticket. I began mapping it all out by going through all of my previous AI email newsletter releases for businesses that had just received investment and other intriguing AI use cases. After spending days creating the perfect B2B AI SaaS mind map, I finally realized something crucial: this isn’t going to work.
The Piece That’s Missing
The paradigm of the two founders, a partnership of two halves, yin and yang, the builder and the artist, is a phenomena that repeatedly occurs throughout tech history, and I discovered it while researching all the most successful firms. Elon Musk and Peter Thiel, Steve Jobs and Steve Wozniak, and Bill Gates and Paul Allen. I’m missing my significant other, but I can construct.
Naturally, I have my own development business to work with in order to construct this SaaS, and I am prepared to contribute up to $100,000 of my own funds. Yes, I am prepared to contribute up to $100,000 of my own funds to the construction of this project. You, the reader of this article, the thousands of people with brilliant ideas and a desire to do something with them, the actual entrepreneurs with actual businesses, customers, and data who are eager to launch a new AI venture, are the greatest asset I could ever hope for in a challenge like this, but I’m not using it. The secret to this challenge’s success lies with you all.
The Urgent Appeal
As a result, I’m sending out a bat signal to all current and prospective business owners with innovative ideas. Please take the challenge and come forward. Come work with me as a co-founder to create an AI firm worth millions of dollars.
I’ll be bringing some items to the table in case you need some persuasion. First and foremost, my technical expertise and comprehension of AI, my programming prowess, my contacts in the AI industry, up to $100,000 in funding, and, lastly, networking to promote our firm. I have the resources and expertise to make your concept a reality. This is your opportunity if you have been watching this AI explosion unfold from the sidelines and have been dying to join in.
The Society
How can you participate, then? I’m establishing my Discord group today for all things related to AI business. Everything will take place inside this Discord, including weekly calls, talent sharing, and information sharing. This will be the beating center of this challenge. With the sole objective of creating AI enterprises, it will be a mingling pot of entrepreneurs, marketers, designers, developers, and more.
You may meet individuals who share your interests and are eager to achieve the same thing here, in addition to staying informed about everything that is going on with the challenge. Links to apply to be a co-founder for this challenge may be found within the Discord channel. You may get a position posted on the jobs board and get the recognition you deserve if you have the abilities or value that you can provide the challenge or other community members, as I will be handling all of the hiring for the challenge via Discord.
In addition to providing frequent updates on the project’s progress and hosting community calls within the Discord, I would really want to join in and get to know some of you. Since I began this adventure, I’ve realized that many of you are amazing, well-established business owners with a wealth of knowledge to share.
Next Actions
I will have reviewed all of the applications, conducted interviews, and selected a few co-founders that we want to go with before the next update. I will also be working on completing our company vision. I want to know what you think of our lineup, and I’ll be showing you the complete process behind the scenes in that update.
To ensure you don’t miss the next installment of this unique series, please subscribe to my newsletter by clicking the link below. If this challenge excites you, share this post while you’re at it. You may join the Discord by clicking the link below, and I’ll see you there. Cheers to taking our startup to the next level!
Disclaimer
This article is based on the author’s personal experience and opinions. It does not provide financial or business advice. Starting a company involves risk, and results may vary. Readers should do their own research and seek professional guidance before making any business or investment decisions.