AI seems to be taking the world by storm. It has become an expected and common part of everyday life, and the number of ways we can use it to automate tasks is steadily increasing.
If you would like to launch your own AI startup, you might be a bit hesitant and confused about the necessary steps. Here’s what you need to know about starting an AI business.
Find a Need to Fill
Your first step is to identify a hole in the market. There are countless AI-driven products flooding the market, so you need to be absolutely sure that what you are selling is something people will want to buy.
Do as much research as possible and identify real, tangible needs your AI will be able to meet. Then, map out a way to do it and test how feasible your idea is.
Hire the Right People
In order for your product to be a success, you will need to find and hire the right people. You’ll need experts in machine learning, data science, and software engineering at the very least.
Ideally, you want someone who has already worked on a successful AI product launch. Their experiences can help you work out some of the kinks in the process and reduce the friction that comes with any startup launch.
Don’t fall for the stories some of your potential employees will tell you. AI is one of the hottest trends right now, and everyone wants a piece of it. That does not mean everyone is actually an expert.
Map Out a Growth Plan
You will also need to write a business plan for your startup. This is the blueprint you will be following through launch and growth. It should serve to guide your decisions and to identify potential challenges and obstacles.
The business plan can also help you secure funding for your venture, as no one will consider investing in a mere idea. You need to prove that your idea is sound, that you have the skills to realize it, and that you understand the current AI market.
Secure Funding
You will now need to think about the funding for your startup. This is one of the most important decisions you will need to make, so set aside enough time to consider all the options.
Venture capital can be the best answer, especially in the artificial intelligence space. However, you need to consider how much control over your company you are ready to relinquish and how soon you’re ready to make an exit, if at all.
Prepare a budget and know exactly how much money you need for which stage of launch and what the specific costs will be.
Launch and Test
Once the funding and people are in place, you can start actually creating your AI product. Note that this may also be a step you take before you secure funding, depending on the nature of your business and your specific circumstances.
When you have a ready-to-test solution, you will first need to run through several phases of technical testing, where you fix all the bugs and any other issues. After that, you should do either a closed or an open beta test.
The beta test should help you significantly improve the product and figure out what your target audience likes and dislikes about it. Make sure that the testers you work with actually belong to the audience you will be marketing the solution to.
Market Your AI Product
When your AI product is market-ready, it’s time to promote and sell it. Ideally, you will already have a marketing plan in place, which you have mapped out when you wrote your business plan.
Marketing in the startup world can be one of the most challenging steps of business development. You are a new entity on the market, so you will need to first build a following and then work on converting it.
If you can, start your marketing campaign early, while the product is still in development. Talk to your audience, get their valuable feedback, and get them as involved in the process as possible.
Track and Pivot
Finally, you’ll need to keep track of key performance indicators and monitor how your business is growing. Are you reaching your milestones on time? Are your planned tactics working as intended?
If you notice things aren’t developing as they should, pivot on time and either rework your original idea or find a new way to market and sell your product.
Wrapping Up
Now that you understand the steps involved in launching an AI startup, you can get started as soon as you are ready. Don’t forget to think each step through. Don’t rush things. The market may be very hot, but you don’t want the speed of launch to cost you in a couple of years’ time.