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How I Built a Profitable AI Startup Solo — And the 6 Mistakes I’d Never Make Again

How I Built a Profitable AI Startup Solo — And the 6 Mistakes I’d Never Make Again

Posted on August 5, 2025 By rehan.rafique No Comments on How I Built a Profitable AI Startup Solo — And the 6 Mistakes I’d Never Make Again

Opinions expressed by Entrepreneur contributors are their own.

When I launched PhotoPacks.AI, I didn’t have a team or funding. Just an idea: offer studio-quality headshots, powered by AI, for a fraction of the cost of a traditional photo shoot. Today, the product works, and it’s growing steadily. But I’ve learned a lot of lessons the hard way.

Here are seven mistakes I made early on, and what I’d do differently if I had to start over.

1. I tried to build for everyone, and converted no one

At first, my startup offered everything: headshots, modeling photos, pet portraits, fantasy scenes. I figured, if AI could generate it, why not let people choose?

But when I showed it to friends and tried to market it, nobody understood what it was for. Zero conversions. The fix? I focused the product around one clear value: professional headshots. That change alone made the product click with users, and sales followed. I learned to be specific and found that a clear, focused message converts better than a broad one.

Start with a focused, singular use case. The more obvious the value, the faster you’ll get traction. You can always expand later, but don’t launch wide and vague.

2. I underpriced — and it backfired

I started with a $9.99 price point because I didn’t want to scare people away. I worried that raising prices would increase refund rates or kill momentum. But that attracted low-intent customers, increased refund requests and made the product feel cheap.

When I raised the price, sales didn’t drop — they got better. People treated the product more seriously. Refunds dropped. Revenue grew.

Test higher pricing earlier than you think. Pricing sends a signal. If you’re solving a real problem, price with confidence, not fear.

Related: Harnessing the Power of AI: 5 Game Changing Tactics for Small Businesses

3. I handled everything myself for too long

I handled support tickets, wrote copy, managed uptime, ran ads, pushed code — all in one day. It wasn’t sustainable. Eventually, I outsourced key pieces and bought back my time. It let me focus on strategy, product and growth.

Don’t confuse “solo” with “doing it all.” Delegate repetitive tasks early. Protect your cognitive bandwidth — it’s your most valuable resource.

Related: AI for the Underdog — Here’s How Small Businesses Can Thrive With Artificial Intelligence

4. I over-engineered the first version

I spent months perfecting features before launch, including ones no one had asked for. I wanted it to look polished and impressive from day one.

Looking back, I should have released a simpler version much earlier and shaped the product around real user feedback. The bells and whistles can wait. What matters most is whether people want what you’re building in the first place.

Launching lean doesn’t mean lowering standards — it means prioritizing clarity over complexity. Get a simple version live, then iterate. Early users don’t expect perfection — they want progress. Speed beats polish.

5. I bet too much on SEO, not enough on community

Early on, I hired an SEO agency to create keyword-optimized content. But most of my actual traffic came from Reddit, where I had been engaging directly with communities.

That still holds true today. My best-performing traffic continues to come from organic conversations, not blog content. The lesson? Your ideal customers are already hanging out somewhere. Find them, show up authentically, and focus on what’s actually driving results, not what’s supposed to.

Go where your users already hang out. Be useful in those spaces. Authenticity scales better than SEO tricks, especially early on.

6. I underestimated how fast AI evolves

Even after spending a year immersed in generative AI, I was still caught off guard by how fast things moved once I launched. What felt groundbreaking one month felt outdated the next.

It’s thrilling, but it’s also exhausting. Trying to keep up with every new development is a recipe for burnout.

Instead of chasing trends, I’ve learned to build around stable, lasting value. Keeping up matters — but not at the expense of your sanity or strategy.

Start simple — learn fast

If you’re a solo founder in AI, here’s my advice: Don’t try to create demand from scratch. Find an underserved audience, meet a clear need and launch fast. Don’t fall in love with your vision. Fall in love with solving problems.

You don’t need to get it all right — just get it out there, learn and keep going.

Ready to break through your revenue ceiling? Join us at Level Up, a conference for ambitious business leaders to unlock new growth opportunities.

When I launched PhotoPacks.AI, I didn’t have a team or funding. Just an idea: offer studio-quality headshots, powered by AI, for a fraction of the cost of a traditional photo shoot. Today, the product works, and it’s growing steadily. But I’ve learned a lot of lessons the hard way.

Here are seven mistakes I made early on, and what I’d do differently if I had to start over.

1. I tried to build for everyone, and converted no one

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