Two-Pizza Team Scale

A framework for building highly profitable businesses with small teams by leveraging AI capabilities, based on Garry Tan's insights about the future of business operations.

Core Concept

• AI enables small teams (20 people or less) to build $100M-$1B revenue businesses
• Large companies are unprepared for this shift
• Traditional corporate structures will be disrupted by agile, AI-powered startups

Key Advantages of Small AI-Powered Teams

• Lower operational costs
• More agile decision making
• Less bureaucracy and corporate conventions
• Faster implementation of new technologies
• Better customer focus and service delivery

Implementation Strategy

• Target businesses currently spending heavily on:
  • Call centers
  • Business process outsourcing
  • Knowledge worker teams
  • Manual data processing
• Replace human workflows with LLM-powered solutions
• Focus on:
  • Building great prompts
  • Creating robust evaluation systems
  • Maintaining high-quality output

Technical Considerations

• Break down complex tasks into smaller, manageable steps
• Current LLMs operate at ~120 IQ level work
• Need proper testing and evaluation systems
• Avoid "raw dog" prompting without proper testing
• Focus on consistent, reliable output

Market Opportunity

• Replace traditional BPO operations
• Target companies spending $100k-$1M annually on manual processes
• Focus on repetitive knowledge work tasks
• Look for businesses with:
  • High manual processing costs
  • Repetitive workflows
  • Clear data patterns
  • Measurable outcomes

Future Considerations

• Cost structures will likely decrease by 10x as AI models improve
• Early movers can establish strong market positions
• Focus on building strong brands and moats now
• Prepare for increased competition as barriers to entry lower
• Consider how to maintain advantage as AI capabilities improve