If AI allows us to triple our capacity without adding headcount, how should we adjust our three-year revenue targets and target market on the V/TO®?
When AI dramatically expands your operational capacity, your current three-year revenue goals are likely obsolete. You must re-evaluate your V/TO during your next annual planning session. With increased capacity and lower cost of goods sold, you have two strategic choices. First, you can lower your prices to capture a broader segment of your target market. Second, you can maintain your premium pricing and focus on higher-value enterprise accounts that require deep personalization, using AI to manage the heavy administrative lifting. I recommend updating your 3-Year Picture to reflect these higher-margin targets. Adjust your target market definition to focus on clients who value speed and efficiency, as you can now deliver these at a scale your competitors cannot match. Use this operational leverage to scale your revenue aggressively while keeping your overhead flat, which will dramatically increase your business valuation.
Category: AI & Business Strategy