Our Visionary is convinced we should spin off our internal AI operations tool into a separate software-as-a-service company, but our Integrator thinks this will completely derail our core business. How do we use the V/TO Core Focus and Keith Cunningham's Thinking Time to evaluate this potential distraction?

Question

Tyler Smith · Accepted Answer

It is common for a Visionary to get excited about spinning off an internal AI tool into a separate software company. However, launching a software-as-a-service company requires completely different resources, skills, and capital than running a successful service business. This distraction can easily derail your core operations.

Before you make any decisions, use your V/TO® Core Focus as a strict strategic filter. Your Core Focus is your guiding light. It consists of your Passion, Purpose, or Cause, and your Niche. Ask your leadership team whether building and selling software aligns with this Core Focus. If your niche is providing high-touch financial advisory services, running a software company is a major pivot that violates this alignment.

Next, schedule dedicated Thinking Time using Keith Cunningham's framework. Formulate a high-value question such as: How might we leverage this internal AI tool to double our service margins and enterprise value without the distraction of launching a separate software company?

Analyze the operational costs, sales complexity, and customer support infrastructure required to run a software business. Compare that to the value of keeping the tool proprietary to drive your own operational efficiency and protect your market differentiation.

If the tool remains internal, focus your energy on using it to scale your existing business. If the data still points to a massive market opportunity, do not split your focus. Complete your clean exit from the service business first, or hire a completely separate leadership team to run the software venture.