AI Startups: Sell work, not software (Sarah Tavel)
While there are fantastic startups innovating to improve employee productivity, LLMs create an opportunity for startups to look beyond this way of thinking and discover surface area that previously was out of bounds for selling software given the required GTM and pricing limitations of software. To do this, rather than sell software to improve an end-user's productivity, founders should consider what it would look like to sell the work itself.
When you sell work, the sales cycle is different, it’s priced relative to the cost of a human performing the work instead of as a productivity improver, and the competition for a similar product (besides the company’s own human capital) is essentially outsourced groups internationally. An AI-driven product with the consistency and SLAs it can achieve should be vastly superior to an outsourced offering – a 10x and cheaper opportunity.