A Step-by-Step Guide to Growing Your Own AI
Start with testing all available tools using AI. Every small business owner should have a personal assistant chatbot texting answers and ideas. It can write anything better. It can make charts and summaries from PDFs. It can talk. Yes, it will do the work. Artificial Intelligence did not work this good just a few years ago. You can grow an in-house LLM to run your small business in small bites over time. Don’t rush this new kind of technology.
The Nursery Method is a three-year approach that empowers small business owners to cultivate proprietary AI systems tailored to their unique needs. It’s more than just automation—it’s about nurturing an evolving system, similar to raising a young sapling into a strong tree. With proper care, an LLM (Large Language Model) can grow from a basic assistant into a full-fledged partner that makes significant contributions to your business.
A key reason for developing an in-house LLM is to reduce the cost of outsourced SaaS accounts, minimizing reliance on third-party software while gaining greater control over operational expenses. Moreover, an in-house LLM enhances security and protects intellectual property, ensuring that sensitive data stays under your control and reducing risks associated with third-party services.
Step 1: Seedling Stage (First 6 Months)
The journey begins by planting the seed—starting with a single, manageable function. The best initial task for automation is a business-calendar-workflow. Train your LLM to track schedules, send reminders, and gradually take over repetitive tasks linked to appointments and meetings. By starting small, the model can learn in a low-risk environment, providing immediate value while adapting to your unique business workflow.
This stage is all about learning and adaptation. You’ll conduct A/B tests, adjust prompts, and monitor the results to understand how the LLM interprets tasks. These insights will help you fine-tune the model for better performance and accuracy.
Step 2: Sapling Stage (6-12 Months)
Once your LLM handles basic office workflows with ease, it’s time to add complexity. During the sapling stage, you introduce new layers of automation. This might include automating email follow-ups, tracking key business metrics, or drafting initial reports every Monday morning. At this point, the LLM is still learning but is starting to contribute more meaningfully.
The focus during this stage is integration. Connect your LLM to other tools in your workflow—such as your CRM, email service, or project management software. This integration allows the LLM to access data and make smarter decisions, further expanding its capabilities beyond isolated tasks.
Step 3: Growth Stage (Year 2)
In the growth stage, host a birthday party for your one year old as it becomes a vital part of your operations. It evolves from being just an assistant to a workflow-manager. The focus shifts from performing individual tasks to optimizing entire workflows. The LLM can automate customer service responses, manage social media posts, or even generate strategic insights.
This stage is about experimentation and improvement. As the LLM starts making more autonomous decisions, it reduces the workload on your team, allowing them to focus on strategic, high-value activities that drive growth.
Step 4: Maturity Stage (Year 3 and Beyond)
By the third year, the LLM reaches maturity and it can update into a Level 3 agent. It can autonomously handle complex workflows—ranging from managing marketing campaigns to analyzing financials and suggesting action points. At this point, the LLM has grown into a trusted-business-partner that goes beyond basic automation—it becomes a driver of growth.
During this stage, the focus is on scaling and evolving. You might introduce new proprietary prompts tailored specifically to your industry to give your LLM an edge. You’ll also be ready to explore agent-to-agent marketplaces, where your LLM can collaborate, share, and even trade capabilities with other systems, opening up new revenue streams and operational efficiencies.
Addressing Potential Criticisms
AI is very new technology. Some critics might argue that the Nursery Method is impractical or overly ambitious. Let’s address these criticisms directly and show why The-Nursery-Method is ideal for small businesses:
- Complexity and Cost: Building an in-house LLM might seem complex and costly, but our method is practical. Hosting the model is comparable to running a small website, keeping expenses manageable. It also uses open-source software that can be updated as needed, which significantly reduces ongoing costs.
- Time Consuming: While the gradual approach may seem time consuming, it ensures reliability. By starting small, you minimize risks and create a robust, customized solution that fits your business. The time invested up front pays off in the form of a highly adapted system that grows alongside your needs.
- Lack of Expertise: Though some technical expertise is required, someone with basic Python skills can manage the implementation. By not trusting other LLMs with everything, you ensure that human oversight guides the development and integration. Additionally, using open-source software allows a broader community of developers to contribute and assist.
- Risk of Limited Capabilities: The Nursery Method focuses on incremental growth and adaptation, ensuring that the model evolves with your business to handle increasingly complex tasks. Unlike generic outsourced solutions, an in-house LLM is customized to your specific workflows, making it more effective for your needs.
- Opportunity Cost: Building an in-house model may appear to take resources away from other growth activities, but the long-term benefits far outweigh the initial investment. Automating repetitive tasks saves time so your team can focus on high-value, strategic activities, making your business more agile and efficient.
- Maintenance Challenges: Maintaining an in-house LLM is similar to maintaining a small website. The model is updated as needed, benefiting from open-source community support, making it more secure and adaptable compared to third-party SaaS solutions that may lack flexibility.
- Scalability Concerns: The Nursery Method prepares your business for future expansion. With Level 3 Agent capabilities and beyond, the LLM is equipped to scale operations, manage increased sales, and optimize processes with minimal overhead. As the LLM evolves, it can support advanced workflows and help you expand into related areas, providing a strong foundation for sustainable growth.
The Reason Behind the Nursery Method
The Nursery Method was created to avoid future issues that can arise from relying too heavily on outsourced software. Outsourcing critical business functions to third-party SaaS providers can leave your business vulnerable to sudden changes in terms of service, price increases, or feature removals. For instance, Facebook changed their advertising rules after many businesses had invested heavily in social media campaigns, leaving them with fewer options and reduced returns. Similarly, YouTube can block profiles without clear reasons, disrupting businesses that rely on their platforms for outreach.
By developing an in-house LLM, you avoid these risks. It’s the same reason why hosting your own website is better than depending solely on profiles on third-party services. With an in-house LLM, you retain control, reduce the risk of disruptions, and ensure your business is insulated from the unpredictable nature of outsourced platforms. This approach puts your business in the driver’s seat—providing stability, security, and the freedom to grow without external interference.
The Full Potential of an In-House LLM, The Five Year Horizon
Looking five years ahead, the full potential of an in-house LLM becomes even more transformative. By this stage, your LLM could evolve into a Level 4 Innovator or even Level 5 Organizer, capable of managing entire business units autonomously. It will handle complex decision-making, predict market trends, and proactively offer innovative solutions. Your LLM will not only assist with operations but will also help shape your business strategy, becoming an invaluable partner.
Your proprietary LLM will be deeply aligned with your business, with a thorough understanding of your industry, customers, and workflows. It will enhance productivity, streamline operations, and help you seize new opportunities faster than competitors. The LLM’s ability to manage more sales with reduced overhead costs means your business can grow without typical growing pains. It will also open the door to buying and automating related businesses, creating a network of efficient, AI-driven operations. By reducing reliance on outsourced SaaS solutions, you will also cut down on software expenses, making your operations more cost-effective. Harnessing the full power of an in-house LLM will position your business to thrive in a rapidly changing landscape where adaptability and intelligence are the keys to sustained success.
The Nursery Method is a good idea for small businesses today, particularly those looking to enhance their control over technology and reduce dependency on third-party services. It allows you to cultivate a proprietary AI system tailored specifically to your needs, ensuring data security, customization, and long-term stability. Although there are challenges, like the initial time and resources required, the benefits of an in-house LLM—such as improved efficiency, reduced costs, and strategic growth—make it a smart long-term investment for businesses aiming to thrive in an increasingly automated future.
As a business coach, my mission is to help successful small business owners like you unlock hidden opportunities, streamline operations, and raise revenue by 20% in quickly as 90 days. Together, we’ll focus on your Profit-Zone tailored specifically to your business goals.