1

How to start an AI business. ..

Welcome to all...

AI, Cognitive Computing, Machine Learning, and Big Data

now all mean the same. They are different views of the

same type of business. AI, the terms we’ll use herein, is

software, formula, and data that makes people smarter.

AI turns data into intelligence. It applies this smartness.

So you want to start an AI business. Here are some ideas

that might help. They can help develop your business.

Note: a bouton is a mind pixel. They piece into ideas. ..

Cognitive

Business

Development ~~~

Monday, Feb 16

6:15 PM to 9 PM

Location...

Improving Enterprises

16633 Dallas Parkway Suite

110 Addison, TX 75001,

Addison, TX

How to start an AI business.

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NAICS Industry Definition

The U.S. computer software industry

(NAICS 334611 & 511210) consists of

establishments engaged in computer

software publishing and/or reproduction, and

mass-reproducing computer software on

magnetic, optical, or other media.

(NOTE: Computer- and software-related

services, such as data processing, custom

programming, and Internet service provision

are classified in NAICS 518210, 541511,

541512, 541513, 541519, and 611420.

You must understand the industry.

Your AI Business is..

Consulting

Training

Data Sourcing

Implementation

Custom AI Programming

an AI Software Product

and/or AI Specific Hardware

Cognitive

Business

Development ~~~

(1) Know the Industry

3

If you know how

mind works, then

you can automate

smartness (AI/BD/CC/ML).

You must understand the underlying science.

Cognitive

Business

Development ~~~

(2) Know the Science

4

Agenda

• Articulate the strategy

• Plan the tactics

• Have a true innovation (USP)

• Organize the team

• Define MVP (minimal viable product)

• Develop MVP

• Create marketing and sales tools

• Sell and serve first customer

• Sell and serve next customer

• Be of high quality

• Do quality fast

• Manage cash flow

• Create profits

• Add people and grow business

• Add products to grow business

• Capitalize as required

• Tightly control always

• Plan to sell it, right from the start

Do the right thing next. Do it again.

Cognitive

Business

Development ~~~

Then fill in, in-between ...

Your unique raison d'etre.

5

Manifesting your unique raison d'etre. That’s the point.

6

Strategy Work Elements

Insights:

• Strategy is visual

• Stored in symbols

• Multi-mediated

• Systemically on-the-one-point

Actions: (Strategy creation to-do’s)

• Company name

• By-line; name tag line

• Logo & top image

• URL domain name

• Elevator speech

• Talking points

• White paper

• Integrated product/service set

• Answers why us?

Is it targeted audience affective?

Do the right thing next. Do that again. JAD.

Articulate

the

Strategy ~~~

Can they see it?

7

Tactical Work Elements

Insights:

• Tactical is tangible

• Things get done/developed

• Create tools and Social Capital

• Takes time, skill, and money

• Identify startup IP

• To get first paying customer

Actions: (creating the minimal)

• Incorporate (people/stock)

• Setup minimal operation

• Establish minimal policies,

procedures, work instructions,

forms, and record keeping.

• Role-play to train (talk it out a lot)

• Start the minimal operation

Defined for quality/productivity.

Plan & Do

the

Tactics ~~~

Quality creations

Do the right thing next. Do that again. JAD.

8

USP Work Elements

Insights:

• The next, better step

• For a targeted audience

• That creates real value ($)

• More for less

• What they desire & now want

• Which you can deliver

Actions: (creating the minimal viable)

• Think

• Out-think

• Rethink

• Refine via thinking...

• Document plan

• Try and prove it

• Document results

• Break through...

Build references & reputation.

USP is

your true

Innovation ~~~

Actually better for them.

Unique Sale/Service Proposition (USP) in JAD form.

9

OD Work Elements

Insights:

• Moonlight first

• Earned-stock for key players

• Right people; not who you know

• Make them responsible

• Tool and get out of way

Actions: (tool, train, manage, meet & motivate)

• Define OD chart

• Detail work actions & efforts

• Establish KPIs

• Implement expert methods

• Quickly/carefully measure results

• Improve or replace people

• Make everyone happy

A motivated and well oiled team.

Organize

the

Team ~~~

Right people for jobs.

Do the right thing next. Do that again. USP JAD.

10

MVP Work Elements

Insights:

• First product or service

• Needs a desirable name

• Very explicit, clear value

• Solves one problem very well

• Works every time

• Leads on and up...

Actions: (solve one need better)

• Brainstorm options

• Think like buyers

• Do not be prejudicial

• Examine need

• Examine value

• Examine competition

• Examine strategy (does it lead on)

• Tool-up and try it out.

MVP is not a loss-leader: breakeven.

Define &

Develop

MVP ~~~

Minimal Viable Product

Do the right thing next. Do that again. JAD.

11

Marketing Work Elements

Insights:

• Where are prospects?

• How do we approach?

• Mediation tools

• Affective system; step-by-step

Actions: (Marketing >> Sales >> Closes)

• MVP product name

• By line

• Logo & top image

• Landing page URL

• Elevator speech for product

• Talking points

• White paper

• Answers how/why buy now?

• Opens-up next product step

Is it targeted audience affective?

MVP

Marketing

& Sales Tools ~~~

Position – Tool – Do

Do the right thing next. Do that again. JAD.

12

Selling Work Elements

Insights:

• Suspects to

• Prospects to

• Qualified opportunities to

• Cogent proposal to

• Close first customer

Actions: (IP creation to-do’s)

• What will they buy?

• How much will they pay?

• How do they buy?

• Have we built the order?

• What to do now?

• Keep at it until it happens.

Each sale is built step-by-step.

JAD the efficient order creation system.

Sell/Serve

First

Customer ~~~

Focus to first order...

13

Serving Work Elements

Insights:

• Improved behavior is the AI goal

• Thinking controls behavior

• What affects thinking

• How can that RI be AI automated?

• Tell the truth well.

Actions: (to properly in-form is to serve)

• Who is the targeted audience?

• What do they now think?

• What should they be thinking?

• How to affect that effect (ACE)?

• Mediate to tell the truth well!

• Measure the impact

• Adjust as learned

Satisfaction is built step-by-step.

Do the right thing next. Do that again. JAD.

Sell/Serve

First

Customer ~~~

Deliver cognitive value...

14

Agenda

• Articulate the strategy

• Plan the tactics

• Have a true innovation (USP)

• Organize the team

• Define MVP (minimal viable product)

• Develop MVP

• Create marketing and sales tools

• Sell and serve first customer

• Sell and serve next customer

• Be of high quality

• Do quality fast

• Manage cash flow

• Create profits

• Add people and grow business

• Add products to grow business

• Capitalize as required

• Tightly control always

• Plan to sell company, right from start

Sell and serve another satisfied customer. Do it again.

Sell/Serve

Second

Customer ~~~

Now sell/serve second

Selling and serving is the

heartbeat of any AI business.

15

Fast Quality Work Elements

Insights:

• Quality and speed integrate

• It’s easy, when you know how

• Have the tools

• Know the process

Actions: (Plan>>Do>>Check>>React)

• Appropriate quality standard

• Create efficient systems

• Have reusable tools

• Get very good, each person

• Focused professionalism

• Measure key elements

• Post quality/performance records

• Keep refining

Is targeted audience best served?

Quality

Done

Fast ~~~

Both at same time...

Do the right thing next. Do that again. JAD.

16

Cash Flow Work Elements

Insights:

• More important than profits

• Could close down the business

• List of contractual obligations

• Get, kept, and use credit

Actions: (ways to lever capital)

• Minimize all fixed cash outflows

• Credit all variable expenses

• Use stock for salaries

• Buy used

• Use partners

• Add to stack

• Do not recreate any wheels

Add value on top of standards

Manage

Cash

Flow ~~~

Important to profits...

Do the right thing next. Do that again. JAD.

17

Profiting Work Elements

Insights:

• Sales – CGS = GM

• Sales value high

• Cost of Goods low

• Barriers to competition

Actions: (relate well, serve better, profit more)

• Serve an unserved need

• Forecast the future

• Guarantee satisfaction

• Make product very clear

• Limit produce scope

• Reduce selling costs

• Reduce production costs

• Reduce service costs

• Reduce management costs

Be best at MVP, then do again.

Build

Systemic

Profits ~~~

Plus 50% GM

Do the right thing next. Do that again. JAD.

18

Peopling Work Elements

Insights:

• One at a time

• Fulltime or moonlight

• Have system right

• Hire to a mindset

• Use strategic partners

Actions: (hire to a psychographic)

• Determine essential activity

• Calculate profit add by person

• Document job description

• Document KPIs

• Document career path

• Plan to keep forever

• Take time to interview

• Always be ready to hire right

• Cyber workers are global

Hire the right mindset.

Add

New

People ~~~

To grow profits

Do the right thing next. Do that again. JAD.

19

Continued (RI people are important)

Insights:

• One person at a time

• Have system tools in place

• Have proven position value

• Hire to a mindset

Actions: (mind-setting the hiring process)

• What must they like doing

• Their career manifest destiny

• Current successful mindsets

• Create useful/desirable culture

• Compensate cash and more

• How do you know what is true?

• RI = Real Intelligence

• RI is job function specific

• Accentuate, eliminate, don’t mess

Be best at Cognitive Leadership.

Building a

Profitable

Organization ~~~

One person at a time...

Do the right thing next. Do that again. JAD.

Many

Hats More specialized and

efficient performers.

20

Product Work Elements

Insights:

• One version or new at a time

• Into a strategic product line

• Have cogent line pre-plan

• Productize to audience mindset

• Fit, evolve, into the ecosystem

Actions: (pace the product advancements)

• Listen/record market input

• Calculate competitive influence

• Have a product vision

• Assembly differentiated line

• Create and market test

• Sell unfinished, then deliver

• Measure customer satisfaction

Envision sell; customers support.

Add

New

Products ~~~

MVP in context

Do the right thing next. Do that again. JAD.

21

Profiting Work Elements

Insights:

• It takes some capital

• Must come in increments

• Yours, Family, Angel, VC, Banks

• Plan for an immediate ROI

• Plan for a strategic ROI

• Lever OPM (other peoples money)

Actions: (Stakeholder ROI)

• Start with own funds

• Offer stock for labor

• Offer stock to investors

• 504D exclusion (<$6 million)

• Document every dollar spent

• Capital into assets (not payroll)

• Bank relationship

• Investor relationship

• Employee relationship

Capitalize

as

Required ~~~

Capital is costly

Do the right thing next. Do that again. JAD.

22

Control Work Elements

Insights:

• Legally control IP

• Share pieces, not wholes

• Monitor employees

• Secure building

• Transparent cash flows

• Get insurance

• Think and talk about risks

Actions: (Stakeholder ROI)

• Create policies & procedures

• Create legal documents

• Discuss and educate

• Get trained signatures

• Log all infractions

• Image control philosophy

• Be prepared to sue

Lose lips, sink ships.

Tightly

Control

Everything ~~~

AI IP most of all

Do the right thing next. Do that again. JAD.

23

Sellout Work Elements

Insights:

• Each company has a window

• Start, develop, sell, go on..

• Know in advance who’ll buy

• Build to their desires

Actions: (the sellout plan)

• Standard “C” Corporation

• Run right, right at start

• Match timing to industry growth

• Have a walk-away # in mind

• Sell to VCs, large firm, public

• Be entrepreneur, buyers manage.

• Eliminate contingent liabilities

• The team is valuable

• Growth rate is king

• Quality companies worth more

Turn effort into wealth.

Plan

to Sell

Company ~~~

Right from the start

Do the last this right. Sell the firm when it’s time.

24

Agenda

• Articulate the strategy

• Plan the tactics

• Have a true innovation (USP)

• Organize the team

• Define MVP (minimal viable product)

• Develop MVP

• Create marketing and sales tools

• Sell and serve first customer

• Sell and serve next customer

• Be of high quality

• Do quality fast

• Manage cash flow

• Create profits

• Add people and grow business

• Add products to grow business

• Capitalize as required

• Tightly control always

• Plan to sell company, right from start

Do it with customer-valued quality. That causes success.

Business

Success

is Built! ~~~

Must do the work!

25

Instructor Gary Deines..

1. Gary is a Cornell educated Cognitive Scientist of

long standing (Behavioral Economics 1973).

2. Known for making important contributions to

bouton ideation (circa 1987) his work is aligned

with Kant, Peirce, Cajal, Hebb, Eccles, & Kandel.

3. He’s called a serial entrepreneur, starting five

successful AI software firms; the last being the

ISOxPERT™ (software for ISO 9000 automation).

4. Gary with his nephew Michael Deines are the co-

founders of the Cognitive Computing Expert (CCE)

meet-ups. Now with 800+ members in 10 cities.

Cognitive Science is new. It’s too complicated for a

person to know-it-all. With his ontology Gary is close.

Today he has shared both CogSci knowledge and AI

business building acumen. His goal is to create

profitable Cognitive Leaders, whom contribute. gld@boutonics.com

gld@hadoopnation.com

Founder Boutonics, Inc.

Director of Hadoop Nation, Inc.

How to build a profitable AI software/service business.

Cognitive

Business

Development ~~~

You can learn how!

26

Instructor Lee Birnbaum..

1. Lee is a log time Enterprise Architect, by education

and trade, who in the last ten years has turned his

focus to real estate investing.

2. Known in the DF/W Real Estate industry for his

investment expertise and decision automation.

3. He developed one of the first Automated Valuation

Systems that scraped data from multiple sources.

The results was a more accurate RE valuation.

4. Lee is now a co-owner, along with Gary Deines, of

a new AI startup company called www.REAi.co.

This firm applies Artificial Intelligence, Big Data,

Machine Learning, and Cognitive Computing

software technology to any Real Estate issue.

“I’ve learned that you cannot start an AI business by

yourself. This is the key message I want to share.” lbb@REAi.co

www.ProcastCapital.com

Podcast Capital, LLC.

Cofounder REAi, Inc.

How to build a profitable AI software/service business.

Cognitive

Business

Development ~~~

You can learn how!