Why did my side-hustle fail? How to validate business ideas

Summary

The video discusses why the creator's side hustle voice cloning business is failing despite an initially profitable launch. Key reasons are low conversion rates, high customer acquisition costs, and the creator's lack of passion. The video then provides advice on validating and building successful side projects: ensure there is market demand, directly engage your target customers, build a minimal MVP to start, and don't worry about monetization early on. Even failed side projects provide valuable experience. The key is to build something that improves people's lives.

Takeaways

• 😞 The author's side hustle is failing despite initial signs of success
• 💡 Validate ideas by seeing if someone else is already executing on it successfully
• 📈 Use analytics and A/B testing to optimize conversion rates before investing in ads
• 🤝 Engage directly with your target audience to validate pain points
• ✉️ Build an email list to engage with potential customers
• 💻 Start with a minimal, frictionless MVP to validate the core idea
• ⛔️ Avoid stuffing too many features at initial launch
• 😊 Failures can still expand your network and skills
• 💪 Taking risks and trying new ideas takes courage
• 🏁 Focus on solving problems to improve people's lives

Q & A

Why is the side hustle failing despite early signs of success?

The conversion rate was only 0.3%, meaning very few people who signed up actually paid for the product. Without ongoing promotion, there were almost no additional sales after launch.

What are some key strategies for validating startup ideas?

Test the market by seeing if others are already executing on the idea. Get feedback from target users on social media. Build an engaged community and email list. Use lean development to ship an MVP quickly.

What should you focus on instead of making money in the early stages?

Focus aggressively on making people's lives better by keeping the app free, minimal, and frictionless in the early stages. Worry about monetization once you have an established user base.

How can competitors be a good sign for your business idea?

If others are already executing on your idea, it shows there is a real market need. You can focus on improving their weaknesses or targeting an overlooked customer segment.

What is the benefit of building in public on social media?

It allows you to connect with potential users and collaborators early on who can provide feedback and support to help validate your idea.

Why is an email list so valuable?

Email lists allow ongoing engagement with interested users. People won't sign up unless they truly want what you're building. You can use the list to get direct feedback.

What is the single most important thing for a startup?

Creating a product so good that people will tell their friends about it, according to Sam Altman of Y Combinator.

Why avoid launching with too many features?

It's better to focus on the core problem first and ship an MVP to get real user feedback. Features often change based on actual user needs.

How can you gradually monetize users?

Start with anonymous access to main features for free, then later add paid account upgrades once users are hooked on the core value.

What value comes from a failed startup attempt?

You gain experience, make connections, build your portfolio, generate reusable code, and earn the pride of having taken a risk to try something new.