Get the exact blueprint to from $0 to $25K+ MRR (Diagram Included): https://dub.sh/build-startup-0
On this episode I present my three-phase approach to building an AI startup. Begin with a "leveraged agency" model, unlike traditional VC-backed startups, this method starts with manual service delivery to understand edge cases. Then implement AI agents to automate processes while maintaining pricing. And finally scale through multiple tiers and content distribution. This approach allows founders to be profitable from month one, retain equity, and build based on real customer pain points.
Timestamps:
00:00 – Introduction to the leveraged agency approach
00:51 – Explanation of the three phases
06:24 – Finding an AI Startup Idea
07:06 – Timeline expectations for growth
09:13 – Building in public and content strategy
11:34 – AI Agent Systemization
12:24 – Pricing System
13:57 – Why this Approach Works
Key Points:
• Start with a manual service agency focused on one boring, painful task ($1K-$5K/month)
• Transition to using AI agents to automate processes, doubling margins and scaling clients
• Create multiple pricing tiers (enterprise, self-serve, API) to reach $5M ARR
• Build an audience through daily content creation to drive customer acquisition
1) The 3-Phase AI Startup Framework
Most founders try to build AI startups from scratch and burn cash.
Greg’s alternative approach:
• Phase 1: Start as a service business ($1-5K/month)
• Phase 2: Build AI systems ($5-25K/month)
• Phase 3: Scale with multiple tiers ($25K+ → $5M ARR)
The secret? Start MANUAL, then automate!
2) Phase 1: Manual Labor (Months 1-6)
This is where EVERYONE gets it wrong.
Instead of building AI first:
• Find an extremely boring, painful task
• Sell it as a service to 5+ clients
• Document EVERY edge case and process
• Learn the business inside out
40% margins, but you’re PROFITABLE from month one!
3) Phase 2: Build The System (Months 7-12)
Now the fun begins:
• Wire AI agents to mirror your SOPs
• Use tools like @LindyAI, Gumloop, or custom Claude workflows
• Keep your service pricing the same
• Double your margins (40% → 80%)
• Handle 10X more clients
You’re building ENTERPRISE VALUE while others are still burning cash.
4) Phase 3: Multiple Tiers (Year 2+)
This is where you SCALE:
• Enterprise tier (white glove for Fortune 500)
• Self-serve product
• API access
• Full AI system with hundreds of clients
As LLMs improve, your system gets BETTER AUTOMATICALLY.
You own most of your equity and can reinvest profits.
5) The Perfect AI Startup Niches
Look for SOUL-CRUSHING tasks nobody wants to do:
• Insurance form management
• Invoice processing
• Review responses
• PDF to Salesforce conversion
• Customs paperwork
These boring tasks are PERFECT for AI agents and people will PAY to avoid them.
6) Build In Public Strategy
Content is your customer acquisition engine:
• ****Solve one problem publicly
• Show your exact process
• Aim for 1,000 views → 100 saves → 10 tries → 1 evangelist
If you can get 9 people paying $3K/month, you can reinvest in content and create a POWERFUL flywheel.
7) The Leveraged Agency Model
This approach gives you MULTIPLE advantages:
• Profitable from month one
• You build PMF before automating
• You retain equity (no VC dilution)
• You learn every customer pain point
• You can choose to raise later (from a position of strength)
It’s the opposite of burning hundreds of thousands with no revenue.
8) The Multi-Preneur Opportunity
The REAL power move:
• Orchestrate multiple AI agents
• Create backend systems that run themselves
• Use profits to dividend out or build more businesses
• Own multiple cash-flowing assets
The #1 tool to find startup ideas/trends – https://www.ideabrowser.com/
LCA helps Fortune 500s and fast-growing startups build their future – from Warner Music to Fortnite to Dropbox. We turn ‘what if’ into reality with AI, apps, and next-gen products https://latecheckout.agency/
Boringmarketing – Vibe Marketing for Companies: http://boringmarketing.com/
The Vibe Marketer – Join the Community and Learn: http://thevibemarketer.com/
Startup Empire – a membership for builders who want to build cash-flowing businesses https://www.skool.com/startupempire/about
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