The Startup Ideas Podcast
The framework for building AI startups from a product design genius
Wed, 18 Dec 2024
Join me as I chat with Mike Hudack, CEO of Sling Money, as we deep dive into AI startup strategy by discussing frameworks for building AI companies, product development approaches, and go-to-market strategies. The conversation covers practical advice for entrepreneurs considering AI ventures, from choosing between B2B and B2C models to pricing strategies and competition analysis. Hudack shares insights from his experience at Facebook and current venture Sling Money.Timestamps:00:00 - Intro02:12 - AI agent framework and startup ideas08:19 - Discussion of successful AI companies16:20 - B2B vs B2C strategy19:28 - Product development philosophy25:20 - How to think about Competitors 28:40 - Go-to-market strategies33:46 - Pricing and monetization discussion39:16 - Mark Zuckerberg's Perspective on AIKey Points:• Framework for AI agents: single clear action, instant feedback, bounded decisions, zero friction• Three promising AI companies discussed: Greenlight (fin-crime), Granola (note-taking), Gradient Labs (customer service)• B2C vs B2B strategy: B2C has higher potential but higher risk, B2B offers more predictable outcomes• Product development approach: focus on solving genuine pain points and building with meaning1) On picking AI startup ideas:Look for repetitive, time-consuming tasks that:• Have clear actions• Provide instant feedback• Make bounded decisions• Create zero frictionExamples: Flight booking, restaurant reservations, scheduling2) The most promising AI companies right now:• Green Lite - Automating financial compliance• Granola - AI-powered collaborative note-taking• GradientLabs - Next-gen customer service• Domu - AI debt collection with empathyAll solving specific, manual problems with tight feedback loops.3) Framework for choosing what to build:Run a "regret minimization" exercise:• Imagine yourself 5-10 years in the future• Consider all possible outcomes• Pick something meaningful you'd be proud to work on• Must be excited to wake up for it every day4) On B2B vs B2C products:B2B:• Easier to validate• Clear path to revenue• Lower failure rate• Smaller outcomesB2C:• Bigger potential upside• Harder to get right• Need to catch lightning• More glory (if it works)5) On pricing AI products:Formula:(Human labor cost saved + Emotional damage prevented) × (20-50% discount) = Your pricePro tip: You CAN raise prices later if you build something people truly love.6) Go-to-market strategy for AI products:• Build in public• Create early waitlists• Find your core believers• Let them help shape the product• Focus on native content for your audience's platform7) On competition:Don't be afraid to copy primitives (basic features everyone needs)BUT:• Stay true to your vision• Keep a mental tab on competitors• Don't get sucked into being reactive• Maintain consistent narrativeMost important lesson: Build something YOU deeply care about. The most successful products come from genuine passion, not just market opportunity.Notable Quotes:"We don't make services to make money, we make money to make better services." - Mike Hudack (citing Walt Disney/Facebook)"If you build a thing which is beautiful and people love and has a place in their lives, you can charge more for it later." - Mike HudackWant more free ideas? I collect the best ideas from the pod and give them to you for free in a database. Most of them cost $0 to start (my fav)Get access: https://www.gregisenberg.com/30startupideasLCA 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/BoringAds — ads agency that will build you profitable ad campaigns http://boringads.com/BoringMarketing — SEO agency and tools to get your organic customers http://boringmarketing.com/Startup Empire - a membership for builders who want to build cash-flowing businesses https://www.startupempire.co/FIND ME ON SOCIALX/Twitter: https://twitter.com/gregisenbergInstagram: https://instagram.com/gregisenberg/LinkedIn: https://www.linkedin.com/in/gisenberg/FIND MIKE ON SOCIALMike’s Website: https://hudack.com/X/Twitter: https://x.com/mhudackLinkedIn: https://www.linkedin.com/in/mhudack/Sling Money: https://sling.money/
Full Episode
What haven't we covered that we should? Pricing, monetization, how you make money. Yeah. It's important. Oh, yeah. The first thing I'll say is that one of my favorite lines about this is, I think it's originally a Walt Disney quote, which is, we don't make movies to make money, we make money to make more movies.
And Facebook co-opted this, and it's in the little red book, you know, which is, we don't make services to make money, we make money to make better services. And I really believe that the most successful companies in the world have that view. I think that you can build an incredibly successful company that makes you millions of dollars that does not have that view.
You know, that's kind of like the more mercenary approach, but you kind of need to decide who you are before you start with your pricing strategy.
So today we have a very special guest. I would say on my Mount Rushmore of product people, I think I only have two people that come to mind. One is Scott Belsky, who I've had on the pod before, chief product officer of Adobe. He advised my last company. Super, super smart guy. And the other, way less known in the internet world, but people who know know, Mike Udak.
I appreciate you coming on here and lending your brain to get people to think bigger about startup ideas and spaces that you're interested in.
Thanks, dude.
That's really kind of you to say. It's true. One part of the show I'm trying to do is people who might not have as much internet fame, bring them and give them the platform. Dude, you're a smart guy. Thank you. What's on your mind today?
Oh my God, so many things. You asked me to come up with startup ideas. What are the most annoying things that you've had to do in the last week that have taken you a bunch of time that you feel like an AI could do by just throwing some compute at it? Do you have a list? Do you know what they are?
Um, I can probably, I can probably figure that out.
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