Founder Fridays No. 73
5 Levels of AI Adoption
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5 Levels of AI Adoption
Here are the 5 levels of AI adoption in a company: Level 1 is basic workflow and software enhancements with AI. Level 2 extends existing offerings with AI features. Level 3 builds intelligence into core products for continuous learning. Level 4 makes AI itself the main product, often leapfrogging industries slow to adopt new tech. Level 5 is AI-first companies impossible without generative AI, creating new innovations. As companies progress through these levels from efficiency gains to new business models, AI adoption enables immense opportunities. The transforming potential of AI is unlocked when companies reach the more advanced integration levels. What level is your company? NFX (11 minutes)
This article has advice from 30 bootstrapped entrepreneurs. Here are some of my favorites: 1) Ship and talk to customers ASAP! 2) I live by the rule: Passion For Problem (PFP). If you don't have passion for the problem you're trying to solve, forget it. 3) Ship fast! Be strategic, of course, but the faster you can ship new features or new marketing projects, the faster you can move through your roadmap and get to your next "checkpoint" in your path to product-market-fit. 4) Build your product, speak to people, publish content, grow your audience... when you manage to do those things well, you won't need to waste time trying to catch the attention of the investors having coffees and doing presentations. They'll be coming to you instead and you'll be able to pick. Microsaashq (10 minutes)
Tyranny of Small Decisions
In 1966, economist Alfred E. Kahn introduced the concept of the "tyranny of small decisions." This refers to how a series of minor, individual choices can lead to an undesirable end result that no one really intended. The core problem is when people fail to recognize how their actions affect others in a broader system. As Professor Amy Edmondson explains, people need "systems thinking" - the ability to consider future impacts on others down the line. For example, a nurse taking extra linens from another ward solves an immediate need but creates a new problem for others. By thinking more holistically about the consequences, people can make better choices and prevent unintended negative outcomes. Broadening perspectives is key to overcoming the tyranny of small decisions. Big Think (7 minutes)
Founder FAQ: How many shares should my startup issue at incorporation?
When launching a startup, founders have to decide how many shares to issue at incorporation. While most startups authorize 10 million shares, the number of shares issued to founders will depend on factors such as the size of the employee pool, the need for additional reserves and the number of founders. This post explores how to determine the right number of shares to issue and the implications of that decision. It also provides some background on what shares in a startup represent and how they work. Westaway (5 minutes)
Startup Funding Guides
I’ve put together a series of guides to equip founders to excel at fundraising. These guides break down the deal term by term and give you negotiation tips so that you can speak to investors with confidence.
Control Legal Spend
Startups suffer from unpredictable legal bills under the billable hour system. Fees fluctuate month-to-month without warning. Law firms drag out billable hours, but startups foot the bill. Even basic work can lead to surprisingly high legal bills. This unpredictability cripples financial planning. Budgets rarely match actual spend. With utter uncertainty around legal spend, startups cannot forecast or manage burn rates effectively. The antiquated billable hour system fails them. Our General Counsel flat monthly fee service gives startups cost certainty. Legal spend becomes predictable with bundled services and no surprise overage bills. By switching from hourly to our flat fee model, startups finally get confident budgeting, accurate forecasting, and predictable legal spend. If you’re sick of getting surprise legal bills and are interested interested in controlling your legal spend, let’s talk.