The TEAM Framework
- T (Technology): Selecting the right tools and platforms to run the business
- E (Engineering): Product design, features, and building what customers will buy
- A (Admin): Back office operations including finance, accounting, legal, billing, and contracts
- M (Marketing): Building reputation and brand through content, communities, and case studies
- This framework represents the business foundation that operates continuously
AI Adoption in Small Business
- 58% of small businesses are already using generative AI according to the US Chamber of Commerce
- Solo founders can automate many business functions without hiring additional staff
Real-World AI Implementation Example
- Chicago business owner transformed financial analysis workflow using AI
- Previously spent hours manually analyzing raw material price data for pricing adjustments
- Now uses ChatGPT to analyze raw material data and receive insights in minutes
- Integrates QuickBooks and point of sales data into Google’s Notebook LM to generate AI podcasts
- Shares these AI-generated podcasts with branch managers to communicate performance insights
- This AI workflow effectively functions as a CFO
AI Agents for Software Development
- Software companies can use two AI agents working in tandem
- One agent writes code while the other reviews and debugs
- These agents can work continuously to catch bugs and ship features
Getting Started with Automation
- Start small: focus on automating a single recurring task in one business area
- Example tools to try:
- Clay for enriching leads (Demand)
- Gamma for building slide decks (Marketing)
- Implementation philosophy: focus on incremental progress rather than the entire system at once
- AI capabilities continue to improve rapidly
Building Competitive Moats
- The real challenge in an AI-driven world is staying in business, not just starting one
- Counter-positioning is a key competitive moat strategy
The Blockbuster vs. Netflix Case Study
- Blockbuster: dominated video rentals in early 2000s with 9,000 stores and $6 billion revenue
- Revenue model depended heavily on rental and late return fees
- Netflix eliminated both fees and introduced monthly subscription with DVD mail service
- Blockbuster couldn’t match Netflix’s strategy without destroying their core revenue model
- Blockbuster declined to acquire Netflix for $50 million
- By 2010, Blockbuster went bankrupt while Netflix grew to nearly $500 billion in value
