Building a Million Dollar AI Business EP.1

I want to try and build a million dollar AI startup from scratch and document every step of the way and maybe we can create something truly awesome building a startup from scratch can be hugely risky and time consuming and I could end up losing all my money but if I get it right the payout could potentially be enormous so I really want to try this out so I can silence my haters from previous videos and prove to you all that I'm not another one of these all talk YouTubers finding you for clicks I am embarking on this challenge to prove once and for all whether plebs like us can really make any money in this AI boom or if it's all just hype so if you are new to the channel my name is Liam otley I'm a self-made serial online entrepreneur from New Zealand but now living in Dubai over the past five years I've built successful e-commerce stores my own digital marketing agency and my AI software development and consulting company just so we're fully transparent this is my background now keep in mind I've never Built My Own AI business I've only ever built AI applications for my clients through my development company now every challenge needs its own set of rules firstly resources can I use my own development team what is my budget and what connections am I allowed to use as mentioned I do have my own team of AI developers so I will be using them within the scope of this Challenge and any funding or connections I can leverage through my own YouTube channel secondly valuation method how will I measure the value of the startup when will I know when I've won we have two options the first one being revenue and the second one being valuation based on multiples revenue is pretty straightforward if we get to a million dollars in sales then we win for multiples we can use the 8X valuation rule for businesses with recurring revenue for example if a company does a hundred and twenty thousand dollars in pre-tax recurring Revenue per year then we can assume that it's valued at a million dollars and finally time this project will be ongoing until we either succeed or have poured enough resources and time into it to confidently say that the AI bubble right now is all hype with these rules set we can get stuck into creating our plan of attack the first thing we need to decide on is what kind of business we want to build the most obvious choice is an AI powered SAS company SAS or software as a service is an extremely powerful and modern business model obvious examples of SAS include Spotify Netflix and Shopify the SAS business model is so powerful for a few reasons firstly building software is typically a one and done process once you've actually built the software the cost of replicating it to thousands or hundreds of thousands of users is almost zero this allows for some juicy profit margins secondly SAS businesses are usually built on subscription models meaning you're getting consistent Revenue each month from each different customer more on this later if we dig a Little Deeper we can find that SAS companies can actually be broken down even further you have b2c or business to Consumer businesses like Spotify with a potentially huge market and typically low subscription costs or you have B2B or business to business SAS companies such as Shopify who generally sell a higher price service and they're selling to other businesses with money to spend now which of these is best for us in this challenge well we must consider that AI is moving so fast right now that businesses that were once valuable are now being commoditized almost overnight this is all because of ai's dirty little secret that not many people know about ninety percent of your favorite AI tools and services are tricking you they act like they have some complex AI system and algorithm that has taken months to build but in reality the core functionality of most of these tools could be built in a couple of days or even a couple of hours okay so why does this matter to us I'm glad you asked because it's this kind of stuff that we need to avoid in order to succeed in this challenge these tools will ultimately fail and never make any major money because they are so easy to replicate so in order to succeed in this Challenge and it was a valuable and durable business we need to be looking for areas of the market that are protected from competitors one way we can do this is by adding a private data element to our business this can either be our own data or we can use the data of our customers by adding the secret Source into our business we'll be able to stand Head and Shoulders above these copycat businesses so now our problem is where do we get this data from then who typically has a big old stack of data lying around that's right businesses customer data website data sales data you name it businesses have probably got some kind of data for it and we can use that data in our product to make it customized and therefore inherently more valuable and durable in this fast-paced market and there you have it we are looking to build a B2B AI SAS company so with that out of the way I have a ton of research to be doing I'm going to get back to you when I have our million dollar idea so I scoured the internet high and low for my golden ticket I started by trolling through all the old releases of my AI email newsletters for companies that had recently gotten funding and other interesting use cases for AI and I started to map it all out I spent days putting together the ultimate B2B AI SAS mind map but eventually I came to an important realization this isn't going to work in my research of all the most successful startups I noticed the pattern a phenomenon that happens time and time again in Tech History the archetype of the two founders a partnership of two halves yin and yang the Builder and the artist Steve Wozniak and Steve Jobs Bill Gates and Paul Allen Peter Thiel and Elon Musk I can build but I'm missing my other half now of course I have my own development company to build this SAS with and I'm willing to put up up to a hundred thousand dollars of my own money that's right I'm willing to invest up to one hundred thousand dollars of my own money into building this project but I'm not using the biggest asset that I could ever ask for in a challenge like this and that is you the person watching this video the thousands of people with a bright idea and a desire to do something with them real entrepreneurs with real businesses customers and data who are itching to get started on a new AI Venture it's you guys who are the key to the success of this challenge so I'm putting out the call the bat signal in the night sky to all aspiring or established entrepreneurs with a bright idea I ask you to step forward and accept the challenge join me as a co-founder in building this million dollar AI startup now if you need some convince them I will be bringing to the table a few things firstly my Technical know-how and understanding of AI my development muscle my connections within the AI space up to one hundred thousand dollars in capital and finally promotion for our startup through my channel I have the know-how and the resources to bring your idea to life if you have been sitting on the side of this AI explosion just etching to get in then this is your chance so how can you get involved today I am launching my community Discord for everything AI entrepreneurship inside this Discord will be the heartbeat of this challenge weekly calls exchanging of skills sharing of knowledge everything is going to be happening inside this Discord it will be a Melting Pot of entrepreneurs marketers designers developers you name it all in there with the single goal of building AI businesses so not only is this a place where you can keep up to date on everything happening with the challenge but you can also find people who are like-minded and are itching to do the same thing as you inside the Discord is where you'll be able to find links so that you can apply as a co-founder for this Challenge and I'll also be doing all of the hiring for the challenge through the Discord so if you have skills or value that you can provide to the challenge or to other community members then you can get a job put up on the jobs board and get the attention you deserve inside the Discord I'll be having Community calls and regular updates on how the project is going and also I'd just love to get in and mingle with some of you guys and to know you if there's anything I've learned since I started this channel it's that many of you guys are incredible established entrepreneurs in your own right with tons of value to give by the next episode I will have gone through all of the applications interviewed and shortlisted a slick number of co-founders that we're looking to move forward with and will be in the process of finalizing our startup Vision in that video I'm going to be showing you the entire process behind the scenes and I want your thoughts on our lineup so head down below subscribe to the channel hit the Bell so you don't miss the next part in this one of a kind series and while you're down there leave a like if you're excited for this challenge I'll see you in a Discord link to join is in the description raise you to a million foreign

Channel: Liam Ottley

Views: 8,417

Keywords: how to start an ai business, how to use ai in my business, 2023 business ideas, internet business 2023, online business 2023, best online businesses, make money online 2023, business ideas 2023, top business ideas 2023, small business ideas 2023, ai businesses, ai startup ideas, artificial intelligence startups, how to start an ai company, Ai startup challenge, openai, chatgpt 4, ai business ideas, ai business ideas chatgpt, chat gpt to make money, artificial intelligence

Id: uPwKTb93uJQ

Length: 8min 34sec (514 seconds)

Published: Wed Mar 29 2023