If I wanted to build $1M+ AI startup in 2025, I'd do this

03/24/25 • 52 min

Join me as I chat with Andrew Wilkinson, Co-Founder of Tiny, as we discuss investment and startup ideas in the current AI landscape. We explore how AI is simultaneously lowering barriers to entry while increasing competition, making it easier to build "million-dollar businesses" but harder to create sustainable long-term ventures. We share specific startup ideas leveraging AI, including secure data integration platforms, automated web design services, and AI-powered lending.

Timestamps:
00:00 - Intro
01:25 - Business building in AI
08:13 - Media Business Opportunities and AI
18:18 - The future of GPT wrappers
21:20 - Automation and AI tools we use
29:14 - Startup Idea 1: MCP and Financial Analysis
34:49 - Startup Idea 2: AI Web Design Agency
37:06 - Startup Idea 3: Message Maxing
43:43 - Startup Idea 4: AI-Based Lending Solutions
49:43 - Andrew's Stealth Startup

Key Points

• AI is making it easier to build businesses but harder to maintain competitive advantages as tools become widely accessible
• Distribution, data advantages, and network effects are becoming the primary moats in the AI era
• Media businesses with high-value niches present opportunities for entrepreneurs to build audiences before layering AI tools
• Secure AI applications (particularly around financial data and personal communications) represent potential sustainable business models

1) The AI Paradox: It's never been EASIER to build a $1M business, but never HARDER to build sustainable value.

Why? Because anyone can "vibe code" your product in a weekend.

Distribution and network effects are the new moats. Tools alone won't cut it anymore.

2) Where are the ACTUAL opportunities?

Andrew & Greg agree: Buy or build MEDIA businesses first, then layer AI on top.

• Focus on High-value niches not mass audiences
• Build community BEFORE tools
• Example: Buy TechCrunch or event series like South by Southwest

3) AI tools they're actually using RIGHT NOW:

• Gumloop - For sales lead intelligence
• Lindy - Email processing & calendar management
• Manus AI - For candidate screening (saved Andrew hours!)
• Vercel V0 - Rebuilt Andrew's pressure washing website in 30 SECONDS

4) Startup Idea 1: "Secure MCP"

Model Context Protocol (MCP) lets LLMs access your data securely.

Andrew built a custom system to analyze his company finances across multiple businesses.

Opportunity: Build the "1Password of MCP" - where security is the selling point.

5) Startup Idea 2: "Message Maxing"

An app that analyzes your text messages to identify:
• Which friends exhibit toxic traits
• How YOU come across in messages
• Who you're neglecting

Perfect for viral TikTok marketing. Could be the next CalAI!

6) Startup Idea 3: AI-powered web design agency

• Use V0 to auto-redesign ugly local business websites
• Reach out with "I already built you a better site"
• Charge $500 + $20/mo hosting
• Scale with automation

Low-hanging fruit for your first million!

7) Startup Idea 4: "Bank of Vibe Coding"

AI-powered lending platform for vibe coders:
• Quick approval for developers with traction
• Take % of profits instead of interest
• Criteria: X followers, Stripe integration, etc.

Sahil Lavingia's $100K offer proves demand!

8) The BIG question: Are these Cal AI businesses (make $1M then die) or sustainable?

Andrew's take: "Almost all these businesses will be zeros in 5 years."

Greg's counter: "It's so hard to predict even 5 months from now!"

What do YOU think? Are you building for the short or long term?

The MOST VALUABLE insight: The businesses that are easiest to start are often the worst businesses to be in long-term.

But that doesn't mean you shouldn't start one! Making your first million with a "Cal AI business" is still a win.

Notable Quotes:

"It's never been easier to build a million dollar business and it's never been easier to lose all your equity value." - Andrew

"Distribution is the new moat, anyone could create anything." - Greg

LCA 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 SOCIAL

X/Twitter: https://twitter.com/gregisenberg
Instagram: https://instagram.com/gregisenberg/
LinkedIn: https://www.linkedin.com/in/gisenberg/

FIND ANDREW ON SOCIAL

X/Twitter: https://x.com/awilkinso...

Key Points

1) The AI Paradox: It's never been EASIER to build a $1M business, but never HARDER to build sustainable value.

Why? Because anyone can "vibe code" your product in a weekend.

Distribution and network effects are the new moats. Tools alone won't cut it anymore.

2) Where are the ACTUAL opportunities?

Andrew & Greg agree: Buy or build MEDIA businesses first, then layer AI on top.

• Focus on High-value niches not mass audiences
• Build community BEFORE tools
• Example: Buy TechCrunch or event series like South by Southwest

3) AI tools they're actually using RIGHT NOW:

4) Startup Idea 1: "Secure MCP"

Model Context Protocol (MCP) lets LLMs access your data securely.

Andrew built a custom system to analyze his company finances across multiple businesses.

Opportunity: Build the "1Password of MCP" - where security is the selling point.

5) Startup Idea 2: "Message Maxing"

An app that analyzes your text messages to identify:
• Which friends exhibit toxic traits
• How YOU come across in messages
• Who you're neglecting

Perfect for viral TikTok marketing. Could be the next CalAI!

6) Startup Idea 3: AI-powered web design agency

• Use V0 to auto-redesign ugly local business websites
• Reach out with "I already built you a better site"
• Charge $500 + $20/mo hosting
• Scale with automation

Low-hanging fruit for your first million!

7) Startup Idea 4: "Bank of Vibe Coding"

AI-powered lending platform for vibe coders:
• Quick approval for developers with traction
• Take % of profits instead of interest
• Criteria: X followers, Stripe integration, etc.

Sahil Lavingia's $100K offer proves demand!

8) The BIG question: Are these Cal AI businesses (make $1M then die) or sustainable?

Andrew's take: "Almost all these businesses will be zeros in 5 years."

Greg's counter: "It's so hard to predict even 5 months from now!"

What do YOU think? Are you building for the short or long term?

The MOST VALUABLE insight: The businesses that are easiest to start are often the worst businesses to be in long-term.

But that doesn't mean you shouldn't start one! Making your first million with a "Cal AI business" is still a win.

Notable Quotes:

"It's never been easier to build a million dollar business and it's never been easier to lose all your equity value." - Andrew

"Distribution is the new moat, anyone could create anything." - Greg

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 SOCIAL

X/Twitter: https://twitter.com/gregisenberg
Instagram: https://instagram.com/gregisenberg/
LinkedIn: https://www.linkedin.com/in/gisenberg/

FIND ANDREW ON SOCIAL

X/Twitter: https://x.com/awilkinso...

Previous Episode

How he finds $1M+ CPG startup ideas before anyone else using Ahrefs and Manus AI

I’m joined by Ashwinn Krishnaswamy, an expert in launching and growing consumer brands, where we discuss how he evaluates market opportunities and creates unfair advantages. We discuss various tools for market research including Ahrefs for keyword analysis, Particl for competitor sales data, and AI tools for product design. Ashwinn emphasizes that entrepreneurs should work backward from distribution channels rather than focusing solely on product development.

Timestamps:
00:00 - Intro
03:45 - Ahrefs tool for keyword research
15:08 - Particl for analyzing competitor sales data
18:52 - Why start a CPG brand
21:05 - How to stand out in crowded categories
24:57- Opportunities in Branding for Older Adults
28:40 - Bootstrapping Your Product Idea
33:56 - Researching Your Market and Competitors
36:52 - Manus AI for automating market research
39:58 - Distribution is everything.

Key Points:

• Ashwinn shares tools and strategies for evaluating market opportunities for physical products and brands
• Tools like Ahrefs and Particle provide valuable data on search volume, competition, and sales trends
• AI tools like Manis can now automate much of the market research process that previously cost thousands
• Distribution strategy should come before product development, not vice versa

1) First, understand that DISTRIBUTION is everything.

"First-time founders focus on product, second-time founders focus on distribution."

The hard truth? Many subpar products CRUSH IT because they nail distribution and operational excellence.

Always work BACKWARDS from how you'll acquire customers!

2) Use Ahrefs to evaluate category demand and competition

Type any keyword to see:
• Monthly search volume (market size)
• Keyword difficulty (competition level)
• Seasonal trends
• Geographic distribution

This helps you VALIDATE demand before building anything!

3) Look for geographic OPPORTUNITIES in the data

When Ashwinn checked "electrolytes" he found:
• 74% of searches from English-speaking Western countries
• Only 3% from India, Philippines

This reveals potential to build "Element for Germany" or other untapped markets where trends haven't diffused yet!

4) For physical products, use Particle to spy on competitors

This tool shows:
• E-commerce sales data for brands
• Best-selling SKUs
• Category trends

Crucial insight: Often 90% of revenue comes from just 4 SKUs!

5) The REAL opportunity in physical products?

They force you to become EXCEPTIONAL at marketing.

"The bleeding edge of marketing happens in consumer products because it's SO HARD to get attention and convince someone to part with their dollars."

It's a marketing masterclass in real-time.

6) How to stand out in crowded categories:

Study the competition obsessively! Ashwinn showed how most magnesium supplements look generic and medical.

But brands like Moon Juice and Lemme differentiate through:
• Distinctive packaging
• Custom bottles
• Clear positioning
• Targeting specific demographics

7) The BIGGEST opportunity right now?

Find UNDERSERVED demographics!

Most brands target coastal millennials or Gen Z because that's who creates them.

But what about products for older adults with:
• More disposable income
• Less saturated marketing channels
• Different aesthetic preferences

8) AI is your UNFAIR ADVANTAGE for research

• Competitor analysis
• Market sizing
• Customer needs
• Design trends

"It's putting together a report Nielsen would charge $20K for!"

99% of people aren't using AI this way yet.

9) Before building ANYTHING, become a "relentless researcher":

• Study every competitor's positioning
• Read all the 1-2 star reviews in your category
• Visit stores and talk to owners
• Contact potential customers directly

Notable Quotes:

"First time founders focus on product, second time founders focus on distribution." - Ashwinn

"Building a physical product business is very hard and by most people probably just shouldn't be done on a whim. But if you can do it in a somewhat low stakes way or low risk way... I think it is a phenomenal way to get really good at marketing." - Ashwinn

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 SOCIAL

X/Twitter: https://twitter.com/gregisen...

Next Episode

I challenged Manus AI to find $1M+ AI Startup Ideas - It Actually Delivered

1 Recommendations

In this episode, host I test Manus AI's ability to function as an AI co-founder by asking it to develop a million-dollar business idea focused on AI. The system analyzes Y Combinator startups and Reddit trends to identify opportunities, ultimately recommending an AI-powered micro-consulting platform for small businesses. Manus delivers a comprehensive business proposal including market validation, pricing strategy, and even designs a functional landing page.

Timestamps:
00:00 - Intro
01:41 - Initial Prompt: Ideas for $1M Startup in 18 Months
03:24 - Manus AI Processing Prompt
06:25 - Alternative Use Cases of Manus AI
13:14 - Results from First Prompt
15:19 - Prompt 2: Focus on Niche Startup Opportunities
17:46 - Results from Second Prompt
23:15 - Prompt 3: Validate Ideas with data and trend analysis
27:00 - Prompt 4: Refining data and trend analysis
29:0` - Prompt 5: Creating a Landing Page with Manus
34:23 - Reviewing results from Business Proposal
37:35 - Results from Fifth Prompt
39:25 - Final Thoughts on Manus AI and Startup Ideas

Key Points:

• I explore Manus AI's multi-agent capabilities to generate a viable startup idea that could make $1 million in 18 months
• Manus AI analyzes YC's latest batch, Reddit trends, and market opportunities to identify niche AI business concepts
• The AI recommends "AI-powered micro-consulting for SMBs" as the most promising opportunity
• Manus creates a complete business proposal including landing page design, pricing strategy, and go-to-market plan

1) I challenged Manus AI (a multi-agent AI system) to develop a complete business plan for an AI startup that could make $1M in 18 months.

The goal: See if AI can identify REAL market trends and opportunities better than humans can.

2) What makes Manus different from ChatGPT?

• Multi-agent capabilities (can browse while chatting)
• Can analyze multiple sources simultaneously
• Performs complex research tasks independently
• Creates actual code/designs, not just concepts

3) The COOLEST use cases Greg discovered while testing Manus:

• Converting unstructured data into organized tables
• Analyzing financial reports like a JP Morgan analyst
• Contract review (saving $1500+ lawyer fees)
• Creating highlight reels from podcast audio
• Building websites from scratch

4) The AI identified these KEY TRENDS in the AI startup landscape:

• Vertical-specific AI solutions for regulated industries
• AI agents for specialized workflows
• Infrastructure tools helping others deploy AI
• No-code/low-code AI accessibility solutions

5) The WINNING IDEA Manus proposed: "Spark Console AI" - an AI-powered micro-consulting platform for small businesses.

The problem it solves? SMBs need expert consulting but can't afford $150-500/hour traditional services.

The solution? $49-500/month AI consulting agents.

6) What impressed me most: Manus VALIDATED the idea with ACTUAL DATA:

• 47% growth in r/smallbusiness subscribers
• Direct quotes from Reddit showing pain points:
"I'd love expert advice but can't justify $200 consultants"
"Generic AI tools don't understand my industry challenges"

7) Manus even built a COMPLETE landing page with:
• Eye-catching design
• Lead generation forms
• Interactive business assessment
• Pricing tiers

All without Greg needing to write a single line of code!

8) The LIMITATIONS Greg found:

• You still need to ask the right questions
• It's more like a "junior employee" than a true co-founder
• Takes 10-15 minutes for complex tasks
• You need to push back on some recommendations

9) My takeaway: We're entering an era where the COMPETITIVE ADVANTAGE isn't coding ability - it's knowing which QUESTIONS to ask AI.

The winners will be those who can identify trends and direct AI to build solutions that ride those tailwinds.

Notable Quotes:

"In a world where anyone could create software... figuring out what is the brand, what is the landing page, what is the product, and what is the trend... is gonna help you actually build a business, not just build a product." - Greg

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 SOCIAL

X/Twitter: https://twitter.com/gregisenberg
Instagram: https://instagram.com/gregisenberg/
LinkedIn: https://www.linkedin.com/in/gisenberg/

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