5 Reasons Why Your Side Projects Fail to Make Money And How to Avoid Them

Introduction

Hello there! If you're like many aspiring entrepreneurs (including me), you've probably had your fair share of bright ideas but struggled to turn them into profitable side projects. You're not alone. Many side projects fail to make money, and understanding why is the first step towards success. So let's dive into the common pitfalls of the solopreneur/indiehacker journey and learn how to avoid them.

Starting this journey, it's important to remember that failure is not the enemy. It is, in fact, a crucial part of the process. Yes, that’s the hard truth: No one ever succeeded by doing something first try.

Embracing failure and learning from it is what helps us avoid making the same mistakes in the future. So buckle up, because we're about to explore the common reasons why side projects fail and how to navigate around them.

Mistake #1 - Not trying it out

This is a tweet from @levelsio, a successful solopreneur, making over $150K/month and it’s a great example to check out. The fear of failure often holds us back from taking that first step. Don't let this fear stop you! It's better to try and fail than to never try at all.

Moreover, keep in mind that not trying at all means you're missing out on valuable experiences and opportunities for growth. Even if your project doesn’t turn out to be profitable, the skills and experience you gain are really the point here. Whether it's enhancing your problem-solving abilities, learning more about a new market, or understanding its dynamics, these skills can be incredibly beneficial in your future projects and interviews.

So, the next time you have an idea for a side project, go for it! Allow your curiosity and passion to drive you, and don't let the fear of failure hold you back. Fail and learn with your mistakes, over and over again — this is the best way to grow as shown by @levelsio.

Mistake #2 - Failed Ideation

You've got this idea. But was it formed through effective brainstorming and problem-solving? One common pitfall in side projects is rushing the ideation process. A thorough brainstorming process is crucial to ensure the viability of your idea.

Try to use your own lenses to filter out ideas that you don’t have that much in common with. The more native the problem is to you, the more obvious and doable the solution seems.

• Validate your idea: It's not enough to think it's good. You need to have at least some assurance that there's a market for it. Conduct surveys, ask people you trust, and gather as much initial data as you can.
• Make sure your idea solves a problem: A good business idea is one that fills a gap in the market or solves a problem that people are experiencing.
• Evaluate your resources: Do you have the skills, time, and money to turn your idea into a business? Be honest with yourself. Always remember that you can do an MVP (minimum viable product), but, if the MVP doesn’t give real value to the users, it won’t suffice.

Want an example? Check this interview with Erlis, creator of amicus.work. It precisely shows how being close to the problem makes the solution intuitive. If you find yourself stuck, you can have a quick read at this other article, or, if you’d prefer a more deep dive Make Book or The Lean Startup are great references too, since they provide valuable insights into avoiding common mistakes during the ideation phase.

Mistake #3 - The infinite build

And there you are: Technology choices flipping through your mind, and you're actually considering learning a whole new programming language just to solve this new problem. Come on, you already read an article on learning! Nothing can stop you!

But, wait! Think about it. Now you have to fight against two problems at the same time:

1. Learning a new language,
2. AND CREATING THE SOLUTION TO YOUR PROBLEM.

Turning a fantastic idea into a thriving business is challenging enough already. And you already know that many side projects fail during the building phase, so why do this to yourself?

The secret here? Innovate, but with caution!

Try things that can always speed you up way more than burden you and slow you down. An example? Already know React? Try Wasp , a full-stack framework that takes care of Boilerplate (e.g. Auth) for you and uses AI generation capabilities to help you create products even quicker.

When trying to create and test an idea, we are not looking too much into learning new stuff, rather it is more about creating the idea itself. So when choosing tools, choose ones that are based on technologies you already know and will help you move fast!

By the way: Wasp are the ones making this article possible and, recently, we released Open SaaS — an excellent, 100% free and open-source way to quick-start your new SaaS. Check it out!

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Other really common mistake is striving for perfection, which often leads to endless tweaking and delays. Remember, "Done is better than perfect." It's crucial to complete your project and get it out into the world. If your project was seen by no one, it’s just an idea.

Mistake #4 - The never arriving feedback

Delays aren't the only stumbling block in this phase. Sometimes, we're so consumed with creating the perfect product that we forget to validate it with actual users. Regular feedback is crucial - it helps you make necessary changes and ensure your product meets the users' needs.

Without feedback, you’ll never know if you hit the jackpot or if you’re creating a solution for a problem that no one has.

So, how do you make sure you're getting the necessary feedback? Start by testing your product with a small group of users. This could be a group of friends, family, or even a dedicated focus group. Their feedback is valuable in identifying any issues or areas of improvement.

It’s really common that we face the fear of receiving negative feedback too, which often leads to withholding the product from the market until it's 'perfect'. This approach, however, can be harmful. It's vital to ship your product as early as possible, even if it's lacking some of the cool features you're planning to add. Early feedback from users can lead you to add features you hadn't previously thought of but, are the features the actual users want.

Remember, feedback is a gift. It allows you to improve your product and make it something that people not only use but love. So, don’t shy away from it, embrace it!

Mistake #5 - A shy launch

And talking about being shy: So, you've built it, now what? It's time to present it to the world. Yet, remember, timing is everything. If you do a launch that is shy and badly planned, you won’t get the users (neither the revenue) you need.

The first step here is to understand your audience and select the appropriate platform. Reddit is excellent for open-source or projects not primarily driven by profit, while, Dev Hunt, Product Hunt, and Hacker News (YC) are wonderful for a broader spectrum of projects. Choosing the right place to launch can mean the difference between a business and nothingness.

Moreover, creating a strategic launch plan is crucial. It's not enough to just publish your project and hope for the best, although it can happen. You need to plan your launch, considering factors such as the right time to launch, the platform's mannerisms, and adjust your communication to your target audience.

A well-thought-out launch plan will not only help you reach a wider audience but also increase the chances of your project's success. You should use tools like Screen Studio and Canva to help you create beautiful screen recordings and promotional images/banners.

As a bonus, here's an example launch plan to get you started:

• Week 1: prepare all promotional materials, like images and videos
• Week 2: Launch on Dev Hunt + promote on social media
• Week 3: Launch on Product Hunt + Show HN
• Week 4 & beyond: Be loud! Continue to promote (without getting banned) on places like Reddit, HN, and other social media platforms.

And hey, you’re on the internet, so, although you might get good feedback, some users will just attack you personally. It's normal, so just ignore the angry people. It’s definitely not a great sensation to have your idea annihilated by some random reddit user, but every now and then you’ll actually get some great insight from an honest user too. It's not easy, but try to recognize which feedback to take seriously, and which to ignore :)

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Conclusion

In conclusion, transforming a side project into a successful business is a journey filled with challenges and triumphs. Along this journey, each step, be it a hurdle or a victory, is a valuable opportunity to learn and grow.

Each failure is not an end, but a stepping stone towards greater success, serving as a lesson that propels us forward. Every setback is a chance to reassess, refine, and come back stronger. Embrace the iterative nature of this process: continue to refine your ideas, persistently strive for improvement, and most importantly, never stop trying and learning.