AI for Boring Businesses
We run a funeral home and a medspa platform—not exactly Y Combinator darlings. Here's what we've learned about implementing AI in the real world.
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TL;DR
- Costco's management faced skepticism during the dot-com era but persevered.
- Boulton and Watt incubator focuses on software-enabled, real-world service businesses, unlike typical tech startups.
- Examples of incubator businesses include Meadow (a digital funeral home) and Moxie (a platform for nurses in aesthetic medicine).
- These businesses operate in regulated, high-margin industries, often attracting private equity over venture capital.
- The AI hype cycle initially made these businesses seem counter-trend.
- As software development becomes easier and public SaaS valuations decline, focus shifts to resilient companies.
- The thesis is that real-world service businesses will flourish, with AI being crucial for both traditional and modern companies.
- AI has been used to accelerate the business incubation process, reducing steps like market research and customer testing.
- Tools like ChatGPT, Clay, and Claude are used for market analysis, customer outreach, call transcription, and workflow analysis.
- AI implementation has reduced the time and cost associated with finding product-market fit.