Four business models that get stronger with AI

Executive overview

Most AI discourse focuses on disruption. Four business models benefit from AI instead: consulting, technical agencies, boring service businesses, and SaaS.

AI compresses costs and raises output per person — but that alone doesn't create profit. Profit requires demand to outstrip constrained supply.

The secret ingredient is a founder personal brand that drives demand into a supply-constrained business.

The four business opportunities

1. Management consulting — every business is transforming; small nimble consultancies can charge high fees without big-firm overhead. Target companies with £5–50M revenue where a £100K engagement can unlock £1M uplift.
2. Technical agency (IT, engineering, accounting, legal, architecture) — AI makes small technical teams dramatically more productive; the opportunity is arbitrage between a lean team and large-company budgets. Most technical businesses fail because founders focus on doing the work, not winning it.
3. Boring service business (cleaning, electrical contracting, waste removal, elevator repair, printing) — low glamour, recurring contracts, high profit. Treat it like an exciting business to unlock its full potential.
4. SaaS — software that delivers 5–10x the value of its subscription cost. AI has cut development costs from hundreds of thousands to tens of thousands. The entrepreneur's job is knowing what to build and how to sell it, not coding it.

Why supply constraint matters

• Profit only appears when demand exceeds supply
• Consulting and technical agencies have naturally constrained supply — they can't scale headcount infinitely
• Boring businesses have sticky contracts and low competitive visibility
• SaaS has near-100% margin on each subscriber beyond breakeven

The key person of influence framework

• LinkedIn research: personal brands are 20x more powerful than business brands
• Lead with a personal brand; funnel audience to the business brand
• Five tools: pitching, publishing content, product focus, profile building, partnerships and joint ventures
• This is founder-led growth — the founder drives demand, the team delivers supply

Selling a personal-brand business

• A founder brand does not prevent a sale
• Acquirers (typically larger competitors) buy the business and retain the founder as key person of influence
• Typical arrangement: 12–18 months of high day-rate involvement (one day per month) to maintain momentum during handover
• Generates a cash flow stream on top of the sale price