## Here’s a TL;DR of video:
The Two Paths to Starting a Business
First route is identifying and solving an urgent, burning problem that you have in your existing business/job. The alternative path is to align your business model with a significant macro trend.
## AI in SaaS is a macro trend happening now
Past technological shifts can provide ideas how these trends happen and the strategies that can used to navigate it.
## Three Principles
1. Identify the Macro Trend: Recognizing AI as a transformative force in SaaS is the first step. 2. Learn from History: Looking back at how previous platform shifts have played out. Transition from desktop to cloud-based, from cloud to mobile accessibility. 3. Innovate Strategically: Instead of attempting to overhaul existing platforms entirely, focus on innovating specific components or aspects to make them significantly better.
## Five core areas: 1. CRM 2. ERP 3. CMS 4. HCM (Human Capital Management - HR) 5. BI
These are the backbone of the SaaS industry. The introduction of AI is expected to redefine these platforms further.
## How to do it:
Focus on improving functionalities within existing core players in these 5 areas, instead of trying replace. Focus on Land grab and expansion. Aggregate data from existing players and focus on forecasts, automation and replacement. By improving certain aspects, you can position yourself as essential complements to existing systems, gradually expanding their scope. OR, the rapid changing landscape presents opportunities not just for growth and expansion but also for strategic exits through acquisitions by the existing players.
