People who initiate side projects with hopes of transforming them into large businesses will maintain their projects as lifelong interests. The ability to transform a typical experiment into a profitable business model requires particular disciplines which succeed more than better ideas or larger funding resources.
Solving a “Bleeding Neck” Problem
A side project solves a problem which people consider essential because it requires immediate attention. The startup delivers solutions which customers value because their problems demand urgent resolution to receive the product which customers will buy despite its existing flaws.
The Discipline of Distribution
Side projects focus 100% on the product. Startups develop their products during one half of their operational time while they use the remaining period to distribute their products. Startups need to inform their customers about product availability because this information helps customers decide on their purchasing choices.
Rigorous Feedback Loops
The hobbyist creates what they desire to witness in the world. A startup founder builds what the market demands. Daily user contact is necessary for someone who needs to track user feedback through data-based product modifications instead of using personal judgment.
Consistent Velocity
A creator progresses through their side project according to their moments of creative inspiration. Startups operate according to their established timeframes. The company maintains its operational rhythm through planned events which include Tuesday code launches and weekly achievement of sales targets.
Building for Scalability
Side projects depend on their creator to conduct all required tasks through manual labor. Startups build systems and automation from day one. The team begins with a hypothetical growth scenario which requires them to prepare for an immediate customer surge of 10,000.
The “Unit Economics” Test
A side project is often happy just to break even or lose a little money. A startup has an all-consuming focus on unit economics which measures how much it costs to acquire one customer (CAC) compared to the total revenue that customer generates (LTV). The business classification derives from whether the financial calculations demonstrate viability.
Narrow Focus (The “Niche” Discipline)
Side projects attempt to handle every task simultaneously. Startups have the discipline to do one thing exceptionally well. The business starts with niche domination before expanding into various business activities.
Documenting the “Why” and “How”
The creator of a side project maintains all project knowledge within their mental framework. Startups create “playbooks.” The documentation of processes enables companies to grow beyond their founders because it allows them to delegate work to others.
Relentless Prioritization
Startups define their existence through the items on their “To-Do” list. The founders need to focus their attention on essential tasks which will create revenue and drive organizational growth while they avoid “fake work” tasks such as selecting office colors and logo design adjustments.
