The Massive Opportunity in Building AI Businesses | Alex Hormozi

**The Power of Unplanned Time**

As entrepreneurs, my team and I often find ourselves in a situation where we've managed to schedule some downtime. This can be as short as six hours or as long as a day, but the impact on our work is substantial. We've discovered that during these unplanned moments, we come up with an abundance of ideas and new things that are invaluable.

This has led us to wonder what would happen if we were to schedule this downtime intentionally. How much further ahead or behind would we be in terms of lost work versus the ideas and relaxed attention? As a team, we're curious about how other entrepreneurs incorporate relaxed attention into their lives.

**Relaxed Attention for Entrepreneurs**

As an entrepreneur, I've found that minimizing meetings is key to allowing for targeted conversations and gathering information. This is especially true for creatives, founders, visionaries, or strategic thinkers who require time to hop on phone calls with people who can provide valuable insights.

By scheduling downtime, entrepreneurs can have more free time to focus on high-leverage activities like strategy, creativity, and innovation. This allows them to come up with new ideas and solutions that might not be possible during a busy period.

**Scheduling Downtime**

In my case, I've run my schedule in a way that allows for significant downtime. I've found that having free time is essential for generating ideas and coming up with creative solutions. By scheduling downtime intentionally, entrepreneurs can create space for themselves to relax, recharge, and focus on high-priority tasks.

**The Value of Downtime**

Downtime is not just about relaxation; it's also about allowing the mind to wander and come up with new ideas. As an entrepreneur, I've found that having free time has a direct impact on my ability to come up with innovative solutions.

By incorporating relaxed attention into their lives, entrepreneurs can create space for themselves to focus on high-leverage activities like strategy, creativity, and innovation. This can lead to breakthroughs, insights, and new ideas that might not be possible during a busy period.

**Conclusion**

In conclusion, downtime is not just a luxury; it's essential for entrepreneurs who want to come up with innovative solutions and stay ahead of the competition. By scheduling downtime intentionally, entrepreneurs can create space for themselves to relax, recharge, and focus on high-priority tasks.

As I mentioned earlier, if you're starting a business that involves helping other businesses implement AI into their operations, it's essential to be specific and focused about how you want to solve the problem. Getting very good at productizing that solution is key to success.

Lastly, when communicating with potential clients, avoid using techno-jargon and focus on selling the transformation they will experience once your solution is implemented.

WEBVTTKind: captionsLanguage: enI do think that AI implementation or Main Street is an enormous opportunity the idea of helping businesses Implement AI into their business and being very specific and focused about how you want to solve that problem and getting very good at productizing that solution there's there's a fortune to be made um obviously Alex a huge thank you to you for everything you're doing in the space I think um first and foremost this has been something that at Real Results is something that I use every day and it's something that features on the channel and everything we do so I know you get it all the time and it must get a little bit tiring but of course a huge thank you to you and everything you're doing I mean for us to be able to support you in any way and get you some uh some leads for your book and for the event was uh was more than more than our pleasure so firstly just a huge thank you to you and everything you're doing as a role model in space all right so uh first thing we can jump into is probably just a little bit of background in terms of our community and what we're doing and then the kind of stuff that we end up going to do so that you can have a lot of more context and be able to be able to help us help us figure out what we're doing a little bit better all right rock and roll right I'll try to speed through this I don't want to make make this delete so uh I want to get through it so we can get to the value in the community question as soon as possible but essentially uh this community that we've built and sort of my channel and everything that we're doing is about how to create AI businesses as easily as possible and making it beginner friendly and sort of accessible to people who are aspiring entrepreneurs so going back to sort of where this all started I was a sort of marketer myself Josh sorry introductions Josh is my mentor and our business partner um we've been doing business for the past couple of years together and we started off doing marketing e-commerce and things like that and I saw an opportunity to diversify my skill sets away from Strictly marketing to more development and it's a novel quote which I'm sure you're familiar with the whole build and sell thing you become Unstoppable and I sort of trained myself up as a developer and was fortunate enough to be well positioned at the start of this AI thing to be able to really take advantage of it started the personal brand and saw like if we can build an audience here and build really a chance to really create a great product and have the distribution networks and things like that then we're going to be in a very good position so we're fortunate enough to stumble our way through the YouTube thing eventually get to nearly 100K now in the past eight nine months and through that we've been able to build a development company AI development company and it was through that we're able to really discover what we're now teaching to all of the people in the community which is how to create what we've called an AI automation agency now this is our framework for building an AI business and this is sort of a long way and a far cry from what these original AI businesses were once upon a time as I'm sure when you're putting out your content as well earlier in the sort of AI wave the the AI businesses people were recommending were not really businesses there were little glitches in the in the space-time fabric when a new technology comes out you can Arbitrage this new thing to copyright and stuff like that but as me as someone who's making this AI business entrepreneurship Channel I was thinking where is the actual opportunity for these entrepreneurs to be able to build the real businesses that's not a gimmick that's not based off some little glitch that's happening for a little bit of a few months or a few months at a time so that led us to creating potentially an AI development company and through that we had a lot of leads coming in that we weren't servicing and eventually we realized instead of having to custom code all of these solutions for these businesses we could actually use low Code and low code tools to be able to service them for basically a third of the price so instead of charging them ten thousand dollars we could say look we'll do it for the Loco tool but for three thousand dollars into our surprise they were actually pretty receptive of it and they were more than happy to actually get the AI integration and be able to benefit from this technology without having to pay the ridiculous price tag so with that kind of realization about five five months ago we realized holy holy crap we're sitting on something yeah that makes AI business and essentially allowing entrepreneurs to facilitate the adoption of AI technology and to smaller medium businesses that's kind of the whole philosophy of what we've built here we've given a framework to building a real interesting let me just ask a couple questions so when you see the EA agency is it like what type of agency is it simply like I look at your business and I think where could AI fit in and like how can it add value is it more like from that perspective or is it like a very specific you like is it content based or you know what I'm saying like is it just like how's the approach what's the end value that's being created or is it different with every single business yeah so that's that's the sort of beauty of it being too General and just saying Hey will aiify your business is not it's not a compelling offer and going back to what you say and all in all of your work as well the method that we've tried to really focus on it's something that I'm actually doing a case study to really go back to the the same place that everyone in the community is already at is walking through this step-by-step strategy that we've kind of put together and at least our current philosophy of picking one Niche and one specific deliverable and being able to focus on that and make when you when you be using software as I don't need to tell you but you can the replicability is really the value there so if you can create a system and build it once and be able to essentially just modify it in order to adapt it to that business then you have an opportunity to really scale that a bit more gracefully and we found with our own AI development company by doing custom things and having to change it every time there's no there's no scale in that result just to bring it back to to helping the community and particularly the sort of stuff that we are seeing on a day-to-day the big topic I want to address is how to sell emerging Tech it is a I know there's a lot of rules that come down to how you teach in your books it's selling the plain flavor versus the vacation that's all it is like if I if I could tell you that your financials would be absolutely accurate and updated in real time would you want that cool specific like how much would you be willing to pay compared to what you currently pay a lot more great what if I said I could do it for less than what you're currently paying are you interested great this is what I need the fact that I'm using AI is a relevant yeah so you just sell the outcome and then you not really compared like AI like AI is great for YouTube clickbait but for for sales it's irrelevant yeah yeah and I think I think it sounds complicated yeah I think it's anything new and like that that's unproven sounds anything that's going to scare them away right so well that was that was that was like one of the main wanted to get across um charge through all the questions like that um okay jumping through wait you must be getting a ton of businesses and and potentially some a lot of AI businesses that are coming across your desk right now at acquisition.com one of the things that's making of sort of jumping out at you and what are the sort of commonalities between things that make you really go well that that seems to have some kind of staying power uh the vast majority of our VA businesses that I look at are dog um and so they're either they're not real AI which is 99 of them um they're basically just built on chat CPT which is fine there's nothing wrong with that but I'm just like let's not claim that we're creating agents right yeah um on the other hand it's it's people who have no business Acumen and so they're like it's totally different like the normal loss of business don't apply it's like they have always looked like and they will always apply because they're just how business works right um and so like those are the vast majority people that I see in that in that that way I did make a tweet about the opportunity that you're talking about right now because I do think that AI implementation for Main Street is an enormous opportunity so aifying if you will and I I don't think I think your first conclusion is Right which is being the custom guy is tough you know I mean it's just it's all things to all people which is nothing to know on um um and so getting the audience really like so if I'm if I'm talking to the audience now if you guys want to get into this world what you want to do is look at an industry or an avatar that you understand well and so one of the things that like Y combinator and some of these great like you know legendary investors look at is how much time a Founder has suffered and lived through a problem right like I can talk about breathing because I've had two nose surgeries I've been falling asleep on my hand since I was in eighth grade so that I could breathe so like I've lived with the problem for a long time and I've tried many different types of solutions so I have tons of Industry knowledge if I were to start a company like that right and so you probably at some point worked in a business if you have a job right now or have had any type of job you've worked in a business that's a great Baseline of background knowledge that's difficult to just jump like if even if you were a server at a restaurant for two years you still would probably know more about restaurants than 99 of people who aren't in the restaurant industry like I don't know anything about how restaurants work because I've just never really worked in one right but you could probably be aware of because you now also have this understanding of what AI can do to think okay there's a hundred problems in a restaurant is there one very specific problem that I can solve well and it's very similar between restaurants because as soon as you get the point A to point B you can create the clear value prop and you can message around that and so like getting extremely specific which is I think what you were saying that you give the advice to is super smart and it makes the problem set really narrow to solve so you can become an expert that's a an inch wide the exact same thing if the audience you should actually have to do that right and the problem the reason that most people don't do that when they're starting out is because you don't have enough demand and so you just get you have so few leads that come to you that you're like well I mean I need to pay rent this month and I only got four leads this month and all four are completely different but I need the money and so I get it sometimes you have to be a little bit inefficient in the beginning so that you can get cash flow going but the idea would be to redeploy like redeploy that cash into getting really concentrated on your marketing which is what offers and leads is all about so that you can find that specific Avatar that you can over and over again repeat which is also why referrals are so strong because if you do a good job they will send you other people just like them yeah I think this brings us to an important one that I've and part of the this business model that we've really been trying to deconstruct and figure out the best way which is getting that that market specific goal at that specific knowledge within industry because the the question is is yes I can pick a niche to do this AI automation I can build AI Solutions and a sort of targeted one but what is the opportunity that I should Target within the niche and that comes down to either a as you said industry experience that you already have or sort of be what we've said is finding some sort of partner within the industry so in terms of finding a partner and these these specific knowledge do you have any any tips on how people could do that and what's the most efficient way that you've seen it it really just comes down to how to have a normal Business Partnership so all the normal rules of business apply and this person has some specific knowledge you don't have and you should ideally have specific knowledge they don't have because they would they should be asking the question like why do I partner with the people in your community if I'm an AI developer right like why why should I use why don't I just learn that stuff and then I can own the whole thing so that that's similar to what you say about regarding SAS and software companies is that you need to have that person with the specific knowledge or in case of SAS their technical partner who's sole thing is just improved product right so um I want to quickly before before we run out of time I want to make sure Isaiah gets this question because he's the guy who made this all happen so I say if you want to jump in and that's it brother um yeah real quick if you're trying to figure out which of the problems to solve in an industry it's just value created times ease of implementation and so like that's the equation which if you chunk it up it's number of potential customers times gross profit per customer the ease part is just you know operational drag associated with with the solution so that's how I would think through if I have six different problems I could potentially solve which one has way more people who have it which one's easier to do which one unlocks the most value okay we'll make we'll make a whole bunch of Workshop Resources with this for the community Isaiah shoot yes sir Alex yeah first of all I just want to say I've taken a lot away from just like your application a language and like the way that you were so specifically uh you're so concise with the way that you communicate and as a master NLP practitioner I've like learned to model your like style and so one of the things that I asked um Liam was hey where do you think from the perspective of Alex's three Frameworks the offer the leads and supposedly the money model from your website I don't know what the third book is um could you share your could you share your insights on where the AI automation model itself might Excel or falter like where does clarity need to be established first for it to be successful long term it has to work like that's the biggest thing like all the stuff that you guys probably are learning or know about marketing and advertising only accelerates the awareness that you bring to the product and so if the product sucks everyone will just find out quickly and then you'll have to create a new product which is why so many of these info guys just keep launching new things because they're really good at marketing and really shitty at product and so they have to keep making new products making more promises and then burning more bridges and that's literally the model uh which is horrible and a shitty way to live and so it makes more sense to figure out like that's why like the more narrow the problem that you're defining the easier it is to do it well and so like it's not just like it feels like it's making your life harder but it's really picking where you want it to be hard so like if you're a generalist it's really easy in the beginning really hard to scale if you're really narrow in the beginning it makes it a little bit harder in the beginning but then really easy to scale and so it's just picking where you want your pain um like a generalist is going to have tons of operational drag very people heavy the the the narrow or the niche audience is going to have a harder time on demand gen but the margins are going to be better and it'll scale better will be dependent on the solution that's being provided so like you'll have leads issues if you're super narrow you'll have delivery issues if you're super wide in terms of like where's the constraint and so it's really just balancing those different variables so that you can create the most throughput in the business but all of those are dependent on the one big thing which is like can you keep the promise that you're making to the prospect if you do it well like if you actually like the problem I said if you could just actually automate the collection of membership dues for gym or for any you know whatever using AI everyone would sign up for it it's just how well do you solve that promise and how painful using the value equation how painful do you make it for a business to actually get it implemented nice awesome okay um there's there's one thing I wanted to run through here quickly as well uh one thing that we're starting to see as as us ourselves actually trying to build one of these these AI automation agencies no air development company as well is that we've always uh looking at it as a as an agency model compared to other agency models we're starting to see the sort of hidden benefit that that we're really starting to see coming to come into play in our own business that is that by building a development team that is capable uh particularly in AI which is very very handy at this at this time at this day and age um is having at least from your experience how crucial is building up some kind of development resources behind you especially as using particularly the agency model as is not particularly the highest leverage one right it's not the it's not an stf business model as you always talk about leverage uh in terms of using an agency model as a vehicle to go from sort of broke and unskilled and resource poor to a point where you are able to sort of springboard onto bigger opportunities so what in the in the sort of Realm of SAS and things like this so what is is your take and your experience with how important that development resource is I mean assured your event in last note working with developers can be a complete plan but having them in-house and having a really good team to rely on as you shoot for those big opportunities can be key once you're experience being like this and how important do you think that development resources when you're going for those bigger plays very if you're in a service business the quality of the people that you use to provide the service is the product and so those people usually want to be compensated well because if they are really good then the places that they're coming from will want to pay more to keep them and so you have to give them a great place to work and a financial incentive or some upside that they get exposed to that they wouldn't otherwise like you want them to feel like owners and the best way to do that is for them to actually be owners now if you want to build a massive team they might just be like you have to go find like you have to go find the biggest baddest you know engineer that you can and then that person gets upside and then that person uses their influence to bring you know the people in their Network underneath of them but like if you were in a if you're trying to get on The Cutting Edge of Technology then actually having the people who are good at that is the business yeah okay well that's good because that's one of the things that I'm really excited for people who are jumping in and creating this not only is it like a an easy accessible Point like smma or any kind of agency model to get started but the smma thing it runs to a certain point but that that marketing resource it doesn't necessarily give you well it is a great resource to have a really killer marketing tape under your belt but the development side of things I tend to find at least in our experience has been a harder thing for us to to create because we don't know it yeah I guess so yeah it's hard you're paying down ignorance tax like it's easier for you to do the marketing stuff because you're good at it so you know if someone's full of on the internet you just don't know if anyone's full of on the interview because you have no context yeah so the heart so the heart the most important higher which is why I say this is you need a technical co-founder you need somebody who has a real stake in making sure that the people are coming in are actually good not that you're checking a box and saying hey I have 14 people on my development team because anybody in the in the true high-tech world knows that one amazing developer is more available than 100 B developers but with that level developer also doesn't come cheap because the opportunity cost for them is significantly higher and they would want to partner with somebody who has experience growing something big who's who can fill their deficit now they also don't have contacts on what you have so you could be full of right I'm not saying you are but I'm just saying like from their perspective right and so going into that I think with an engineering type of person showing as much evidence in data because that's how most of them kind of think will help make a case that is more relatable to them and uh from your perspective that's like this is the hardest part of business is hiring people who are really good at something without knowing the in-depth knowledge and that's where like leveraging somebody who might not want to work for you that you do think is brilliant to at least interview or double check on how good they are um is really valuable that's where like building a network becomes important um and and getting even some tests like of aptitude for them to take so that you can at least get some sort of Baseline but it's all going to be about how skilled that person is because ideally if they were as good as you are at marketing then you guys would probably have a really successful business we've been fortunate enough to to find that find that magical sort of technical co-founder so um we're starting to get them really well compensated both getting an APD as well so we are off to the race and that's completely changed our business I can't even trust for anyone of you in here that that key hire is just a complete game I'm sure you've had it Alex in your businesses where you've just found that right person and it just completely changes things so I think we are tied on time here so I wanted to jump into a little bit uh of a more sort of General entrepreneurship question not necessarily specific to this but uh one thing that myself and Josh and our team I really wanted to get your take on this but as an unfort as a group of entrepreneurs myself and Josh and our team and all our friends who grew up with who we're fortunate enough to work with at the moment uh we've always wondered uh we sometimes have sort of a six hours or a day where we actually get to unwind and and click off for a bit and the amount of ideas and sort of new things that we discover on those times that we're actually Switched Off are so hugely valuable we've always wondered what if we actually just schedule this and how how much further ahead or behind would we be in terms of that lost work versus the the ideas and the the relaxed attention so I want to know what how do you incorporate relaxed or is it to relax attention relax attention into your life as an entrepreneur and how important does uh that play a role in terms of you being able to come up with new ideas how do you actually bait that into your life and where do you get your ideas I just I try to minimize the amount of meetings that I'm on that's that's me but like every every role in a company is different like an operator it's tip you know creating lots of new ideas is usually not the operators primary function like they're making sure that things are operating efficiently not going on time and driving objectives um if you're the Creator founder Visionary strategic thinker whatever it is your title then having more time to hop on phone calls with people that are that can give you information around you know a specific thing that you're thinking on like bouncing bouncing ideas off stuff um becomes more valuable and so now mind you that's not like Social Hour but like having targeted conversations where you're just getting as much information as you can uh can be valuable for me I have just run my schedule the same way for a while now which is just I don't have anything like today is an exception because my whole day is these um but most of the time I don't have anything until one o'clock um and so I take meetings and like one is when they're allowed to start but even then my team starts booking them back to front so you know the my last meeting might end at 5 30 and so it's a 30 minute meeting the next meeting will be at 4 30 that ends at five and so they book from back to front so that um so that I have as much free time as I possibly can that's because I don't need motivation to work like I'll work all the hours today anyways um and if the more free time I have the better ideas I come up with okay right I think that's uh I think that's a wrap Alex it's been an absolute pleasure thank you so much for everything you do um like we all appreciate it so much good luck with the rest of these calls and uh and congratulations on the book launch no I appreciate it let me just say a special thanks to the community um thank you guys so much for for showing up it means a ton to me more than I can really say um and I wish I could have this call with every single person uh physics the laws of physics don't allow it and so hopefully this is you know one small step in that direction um if you are starting one of these businesses I think it is a good opportunity just the the idea of helping businesses Implement AI into their business and being very specific and focused about how you want to solve that problem and getting very good at productizing that solution um there is there's a fortune to be made in just making businesses more efficient and so uh I would also not communicate it using techno jargon uh with the person that you're ultimately trying to sell just tell them what life's going to be like once this thing is done and ask them if they want that sell the transformation and avoid the mechanism yeah all right appreciate you guys thank you guys for showing up hopefully the book serves you guys wellI do think that AI implementation or Main Street is an enormous opportunity the idea of helping businesses Implement AI into their business and being very specific and focused about how you want to solve that problem and getting very good at productizing that solution there's there's a fortune to be made um obviously Alex a huge thank you to you for everything you're doing in the space I think um first and foremost this has been something that at Real Results is something that I use every day and it's something that features on the channel and everything we do so I know you get it all the time and it must get a little bit tiring but of course a huge thank you to you and everything you're doing I mean for us to be able to support you in any way and get you some uh some leads for your book and for the event was uh was more than more than our pleasure so firstly just a huge thank you to you and everything you're doing as a role model in space all right so uh first thing we can jump into is probably just a little bit of background in terms of our community and what we're doing and then the kind of stuff that we end up going to do so that you can have a lot of more context and be able to be able to help us help us figure out what we're doing a little bit better all right rock and roll right I'll try to speed through this I don't want to make make this delete so uh I want to get through it so we can get to the value in the community question as soon as possible but essentially uh this community that we've built and sort of my channel and everything that we're doing is about how to create AI businesses as easily as possible and making it beginner friendly and sort of accessible to people who are aspiring entrepreneurs so going back to sort of where this all started I was a sort of marketer myself Josh sorry introductions Josh is my mentor and our business partner um we've been doing business for the past couple of years together and we started off doing marketing e-commerce and things like that and I saw an opportunity to diversify my skill sets away from Strictly marketing to more development and it's a novel quote which I'm sure you're familiar with the whole build and sell thing you become Unstoppable and I sort of trained myself up as a developer and was fortunate enough to be well positioned at the start of this AI thing to be able to really take advantage of it started the personal brand and saw like if we can build an audience here and build really a chance to really create a great product and have the distribution networks and things like that then we're going to be in a very good position so we're fortunate enough to stumble our way through the YouTube thing eventually get to nearly 100K now in the past eight nine months and through that we've been able to build a development company AI development company and it was through that we're able to really discover what we're now teaching to all of the people in the community which is how to create what we've called an AI automation agency now this is our framework for building an AI business and this is sort of a long way and a far cry from what these original AI businesses were once upon a time as I'm sure when you're putting out your content as well earlier in the sort of AI wave the the AI businesses people were recommending were not really businesses there were little glitches in the in the space-time fabric when a new technology comes out you can Arbitrage this new thing to copyright and stuff like that but as me as someone who's making this AI business entrepreneurship Channel I was thinking where is the actual opportunity for these entrepreneurs to be able to build the real businesses that's not a gimmick that's not based off some little glitch that's happening for a little bit of a few months or a few months at a time so that led us to creating potentially an AI development company and through that we had a lot of leads coming in that we weren't servicing and eventually we realized instead of having to custom code all of these solutions for these businesses we could actually use low Code and low code tools to be able to service them for basically a third of the price so instead of charging them ten thousand dollars we could say look we'll do it for the Loco tool but for three thousand dollars into our surprise they were actually pretty receptive of it and they were more than happy to actually get the AI integration and be able to benefit from this technology without having to pay the ridiculous price tag so with that kind of realization about five five months ago we realized holy holy crap we're sitting on something yeah that makes AI business and essentially allowing entrepreneurs to facilitate the adoption of AI technology and to smaller medium businesses that's kind of the whole philosophy of what we've built here we've given a framework to building a real interesting let me just ask a couple questions so when you see the EA agency is it like what type of agency is it simply like I look at your business and I think where could AI fit in and like how can it add value is it more like from that perspective or is it like a very specific you like is it content based or you know what I'm saying like is it just like how's the approach what's the end value that's being created or is it different with every single business yeah so that's that's the sort of beauty of it being too General and just saying Hey will aiify your business is not it's not a compelling offer and going back to what you say and all in all of your work as well the method that we've tried to really focus on it's something that I'm actually doing a case study to really go back to the the same place that everyone in the community is already at is walking through this step-by-step strategy that we've kind of put together and at least our current philosophy of picking one Niche and one specific deliverable and being able to focus on that and make when you when you be using software as I don't need to tell you but you can the replicability is really the value there so if you can create a system and build it once and be able to essentially just modify it in order to adapt it to that business then you have an opportunity to really scale that a bit more gracefully and we found with our own AI development company by doing custom things and having to change it every time there's no there's no scale in that result just to bring it back to to helping the community and particularly the sort of stuff that we are seeing on a day-to-day the big topic I want to address is how to sell emerging Tech it is a I know there's a lot of rules that come down to how you teach in your books it's selling the plain flavor versus the vacation that's all it is like if I if I could tell you that your financials would be absolutely accurate and updated in real time would you want that cool specific like how much would you be willing to pay compared to what you currently pay a lot more great what if I said I could do it for less than what you're currently paying are you interested great this is what I need the fact that I'm using AI is a relevant yeah so you just sell the outcome and then you not really compared like AI like AI is great for YouTube clickbait but for for sales it's irrelevant yeah yeah and I think I think it sounds complicated yeah I think it's anything new and like that that's unproven sounds anything that's going to scare them away right so well that was that was that was like one of the main wanted to get across um charge through all the questions like that um okay jumping through wait you must be getting a ton of businesses and and potentially some a lot of AI businesses that are coming across your desk right now at acquisition.com one of the things that's making of sort of jumping out at you and what are the sort of commonalities between things that make you really go well that that seems to have some kind of staying power uh the vast majority of our VA businesses that I look at are dog um and so they're either they're not real AI which is 99 of them um they're basically just built on chat CPT which is fine there's nothing wrong with that but I'm just like let's not claim that we're creating agents right yeah um on the other hand it's it's people who have no business Acumen and so they're like it's totally different like the normal loss of business don't apply it's like they have always looked like and they will always apply because they're just how business works right um and so like those are the vast majority people that I see in that in that that way I did make a tweet about the opportunity that you're talking about right now because I do think that AI implementation for Main Street is an enormous opportunity so aifying if you will and I I don't think I think your first conclusion is Right which is being the custom guy is tough you know I mean it's just it's all things to all people which is nothing to know on um um and so getting the audience really like so if I'm if I'm talking to the audience now if you guys want to get into this world what you want to do is look at an industry or an avatar that you understand well and so one of the things that like Y combinator and some of these great like you know legendary investors look at is how much time a Founder has suffered and lived through a problem right like I can talk about breathing because I've had two nose surgeries I've been falling asleep on my hand since I was in eighth grade so that I could breathe so like I've lived with the problem for a long time and I've tried many different types of solutions so I have tons of Industry knowledge if I were to start a company like that right and so you probably at some point worked in a business if you have a job right now or have had any type of job you've worked in a business that's a great Baseline of background knowledge that's difficult to just jump like if even if you were a server at a restaurant for two years you still would probably know more about restaurants than 99 of people who aren't in the restaurant industry like I don't know anything about how restaurants work because I've just never really worked in one right but you could probably be aware of because you now also have this understanding of what AI can do to think okay there's a hundred problems in a restaurant is there one very specific problem that I can solve well and it's very similar between restaurants because as soon as you get the point A to point B you can create the clear value prop and you can message around that and so like getting extremely specific which is I think what you were saying that you give the advice to is super smart and it makes the problem set really narrow to solve so you can become an expert that's a an inch wide the exact same thing if the audience you should actually have to do that right and the problem the reason that most people don't do that when they're starting out is because you don't have enough demand and so you just get you have so few leads that come to you that you're like well I mean I need to pay rent this month and I only got four leads this month and all four are completely different but I need the money and so I get it sometimes you have to be a little bit inefficient in the beginning so that you can get cash flow going but the idea would be to redeploy like redeploy that cash into getting really concentrated on your marketing which is what offers and leads is all about so that you can find that specific Avatar that you can over and over again repeat which is also why referrals are so strong because if you do a good job they will send you other people just like them yeah I think this brings us to an important one that I've and part of the this business model that we've really been trying to deconstruct and figure out the best way which is getting that that market specific goal at that specific knowledge within industry because the the question is is yes I can pick a niche to do this AI automation I can build AI Solutions and a sort of targeted one but what is the opportunity that I should Target within the niche and that comes down to either a as you said industry experience that you already have or sort of be what we've said is finding some sort of partner within the industry so in terms of finding a partner and these these specific knowledge do you have any any tips on how people could do that and what's the most efficient way that you've seen it it really just comes down to how to have a normal Business Partnership so all the normal rules of business apply and this person has some specific knowledge you don't have and you should ideally have specific knowledge they don't have because they would they should be asking the question like why do I partner with the people in your community if I'm an AI developer right like why why should I use why don't I just learn that stuff and then I can own the whole thing so that that's similar to what you say about regarding SAS and software companies is that you need to have that person with the specific knowledge or in case of SAS their technical partner who's sole thing is just improved product right so um I want to quickly before before we run out of time I want to make sure Isaiah gets this question because he's the guy who made this all happen so I say if you want to jump in and that's it brother um yeah real quick if you're trying to figure out which of the problems to solve in an industry it's just value created times ease of implementation and so like that's the equation which if you chunk it up it's number of potential customers times gross profit per customer the ease part is just you know operational drag associated with with the solution so that's how I would think through if I have six different problems I could potentially solve which one has way more people who have it which one's easier to do which one unlocks the most value okay we'll make we'll make a whole bunch of Workshop Resources with this for the community Isaiah shoot yes sir Alex yeah first of all I just want to say I've taken a lot away from just like your application a language and like the way that you were so specifically uh you're so concise with the way that you communicate and as a master NLP practitioner I've like learned to model your like style and so one of the things that I asked um Liam was hey where do you think from the perspective of Alex's three Frameworks the offer the leads and supposedly the money model from your website I don't know what the third book is um could you share your could you share your insights on where the AI automation model itself might Excel or falter like where does clarity need to be established first for it to be successful long term it has to work like that's the biggest thing like all the stuff that you guys probably are learning or know about marketing and advertising only accelerates the awareness that you bring to the product and so if the product sucks everyone will just find out quickly and then you'll have to create a new product which is why so many of these info guys just keep launching new things because they're really good at marketing and really shitty at product and so they have to keep making new products making more promises and then burning more bridges and that's literally the model uh which is horrible and a shitty way to live and so it makes more sense to figure out like that's why like the more narrow the problem that you're defining the easier it is to do it well and so like it's not just like it feels like it's making your life harder but it's really picking where you want it to be hard so like if you're a generalist it's really easy in the beginning really hard to scale if you're really narrow in the beginning it makes it a little bit harder in the beginning but then really easy to scale and so it's just picking where you want your pain um like a generalist is going to have tons of operational drag very people heavy the the the narrow or the niche audience is going to have a harder time on demand gen but the margins are going to be better and it'll scale better will be dependent on the solution that's being provided so like you'll have leads issues if you're super narrow you'll have delivery issues if you're super wide in terms of like where's the constraint and so it's really just balancing those different variables so that you can create the most throughput in the business but all of those are dependent on the one big thing which is like can you keep the promise that you're making to the prospect if you do it well like if you actually like the problem I said if you could just actually automate the collection of membership dues for gym or for any you know whatever using AI everyone would sign up for it it's just how well do you solve that promise and how painful using the value equation how painful do you make it for a business to actually get it implemented nice awesome okay um there's there's one thing I wanted to run through here quickly as well uh one thing that we're starting to see as as us ourselves actually trying to build one of these these AI automation agencies no air development company as well is that we've always uh looking at it as a as an agency model compared to other agency models we're starting to see the sort of hidden benefit that that we're really starting to see coming to come into play in our own business that is that by building a development team that is capable uh particularly in AI which is very very handy at this at this time at this day and age um is having at least from your experience how crucial is building up some kind of development resources behind you especially as using particularly the agency model as is not particularly the highest leverage one right it's not the it's not an stf business model as you always talk about leverage uh in terms of using an agency model as a vehicle to go from sort of broke and unskilled and resource poor to a point where you are able to sort of springboard onto bigger opportunities so what in the in the sort of Realm of SAS and things like this so what is is your take and your experience with how important that development resource is I mean assured your event in last note working with developers can be a complete plan but having them in-house and having a really good team to rely on as you shoot for those big opportunities can be key once you're experience being like this and how important do you think that development resources when you're going for those bigger plays very if you're in a service business the quality of the people that you use to provide the service is the product and so those people usually want to be compensated well because if they are really good then the places that they're coming from will want to pay more to keep them and so you have to give them a great place to work and a financial incentive or some upside that they get exposed to that they wouldn't otherwise like you want them to feel like owners and the best way to do that is for them to actually be owners now if you want to build a massive team they might just be like you have to go find like you have to go find the biggest baddest you know engineer that you can and then that person gets upside and then that person uses their influence to bring you know the people in their Network underneath of them but like if you were in a if you're trying to get on The Cutting Edge of Technology then actually having the people who are good at that is the business yeah okay well that's good because that's one of the things that I'm really excited for people who are jumping in and creating this not only is it like a an easy accessible Point like smma or any kind of agency model to get started but the smma thing it runs to a certain point but that that marketing resource it doesn't necessarily give you well it is a great resource to have a really killer marketing tape under your belt but the development side of things I tend to find at least in our experience has been a harder thing for us to to create because we don't know it yeah I guess so yeah it's hard you're paying down ignorance tax like it's easier for you to do the marketing stuff because you're good at it so you know if someone's full of on the internet you just don't know if anyone's full of on the interview because you have no context yeah so the heart so the heart the most important higher which is why I say this is you need a technical co-founder you need somebody who has a real stake in making sure that the people are coming in are actually good not that you're checking a box and saying hey I have 14 people on my development team because anybody in the in the true high-tech world knows that one amazing developer is more available than 100 B developers but with that level developer also doesn't come cheap because the opportunity cost for them is significantly higher and they would want to partner with somebody who has experience growing something big who's who can fill their deficit now they also don't have contacts on what you have so you could be full of right I'm not saying you are but I'm just saying like from their perspective right and so going into that I think with an engineering type of person showing as much evidence in data because that's how most of them kind of think will help make a case that is more relatable to them and uh from your perspective that's like this is the hardest part of business is hiring people who are really good at something without knowing the in-depth knowledge and that's where like leveraging somebody who might not want to work for you that you do think is brilliant to at least interview or double check on how good they are um is really valuable that's where like building a network becomes important um and and getting even some tests like of aptitude for them to take so that you can at least get some sort of Baseline but it's all going to be about how skilled that person is because ideally if they were as good as you are at marketing then you guys would probably have a really successful business we've been fortunate enough to to find that find that magical sort of technical co-founder so um we're starting to get them really well compensated both getting an APD as well so we are off to the race and that's completely changed our business I can't even trust for anyone of you in here that that key hire is just a complete game I'm sure you've had it Alex in your businesses where you've just found that right person and it just completely changes things so I think we are tied on time here so I wanted to jump into a little bit uh of a more sort of General entrepreneurship question not necessarily specific to this but uh one thing that myself and Josh and our team I really wanted to get your take on this but as an unfort as a group of entrepreneurs myself and Josh and our team and all our friends who grew up with who we're fortunate enough to work with at the moment uh we've always wondered uh we sometimes have sort of a six hours or a day where we actually get to unwind and and click off for a bit and the amount of ideas and sort of new things that we discover on those times that we're actually Switched Off are so hugely valuable we've always wondered what if we actually just schedule this and how how much further ahead or behind would we be in terms of that lost work versus the the ideas and the the relaxed attention so I want to know what how do you incorporate relaxed or is it to relax attention relax attention into your life as an entrepreneur and how important does uh that play a role in terms of you being able to come up with new ideas how do you actually bait that into your life and where do you get your ideas I just I try to minimize the amount of meetings that I'm on that's that's me but like every every role in a company is different like an operator it's tip you know creating lots of new ideas is usually not the operators primary function like they're making sure that things are operating efficiently not going on time and driving objectives um if you're the Creator founder Visionary strategic thinker whatever it is your title then having more time to hop on phone calls with people that are that can give you information around you know a specific thing that you're thinking on like bouncing bouncing ideas off stuff um becomes more valuable and so now mind you that's not like Social Hour but like having targeted conversations where you're just getting as much information as you can uh can be valuable for me I have just run my schedule the same way for a while now which is just I don't have anything like today is an exception because my whole day is these um but most of the time I don't have anything until one o'clock um and so I take meetings and like one is when they're allowed to start but even then my team starts booking them back to front so you know the my last meeting might end at 5 30 and so it's a 30 minute meeting the next meeting will be at 4 30 that ends at five and so they book from back to front so that um so that I have as much free time as I possibly can that's because I don't need motivation to work like I'll work all the hours today anyways um and if the more free time I have the better ideas I come up with okay right I think that's uh I think that's a wrap Alex it's been an absolute pleasure thank you so much for everything you do um like we all appreciate it so much good luck with the rest of these calls and uh and congratulations on the book launch no I appreciate it let me just say a special thanks to the community um thank you guys so much for for showing up it means a ton to me more than I can really say um and I wish I could have this call with every single person uh physics the laws of physics don't allow it and so hopefully this is you know one small step in that direction um if you are starting one of these businesses I think it is a good opportunity just the the idea of helping businesses Implement AI into their business and being very specific and focused about how you want to solve that problem and getting very good at productizing that solution um there is there's a fortune to be made in just making businesses more efficient and so uh I would also not communicate it using techno jargon uh with the person that you're ultimately trying to sell just tell them what life's going to be like once this thing is done and ask them if they want that sell the transformation and avoid the mechanism yeah all right appreciate you guys thank you guys for showing up hopefully the book serves you guys well