5 Common Mistakes People Make When Choosing a Business Idea
A practical guide to avoid the traps that kill 90% of side hustles before they even start
Most side hustles fail long before they get a chance to grow—not because of bad luck, but because of avoidable mistakes. This article is a straightforward breakdown of the most common traps that stop people before they really start, and how to dodge them with clarity and confidence.
What you’ll find in this article:
Bonus: Two checklists to stay sharp and move smart
Bonus: Use the right tools from day one
❌ Mistake #1 - Building something that doesn’t solve a real problem
Starting from tech instead of a real problem
Many people start their side hustle journey with a question like:
“What can I build with AI?” or “How could I use blockchain?”
The motivation is understandable — you see a powerful new tool and want to be part of the wave.
But starting from technology instead of a user need is a dangerous shortcut.
Just because a tech is exciting doesn't mean it solves a real problem.
📍 Bad example:
“I’ll build a platform where people with similar interests can connect.”
→ This sounds fine, but it's vague. What kind of people? What interests? Why do they need another platform? What problem are they actively trying to solve?
📍 Good example:
“I’ll build a tool that helps freelancers write personalized outreach emails.”
→ Clear audience, specific need, and obvious benefit. You can imagine someone actually paying for this.
✅ How to avoid this trap:
Begin with problems you've experienced personally — these are easier to understand deeply
Spend time reading forums like Reddit or Quora, looking for recurring pain points
Ask direct questions to real people:
“What’s the most annoying or repetitive part of your job?”
“What tools do you use, but secretly hate?”
🕳️ Mistake #2 – Falling for “tar pit ideas”
Some ideas are like quicksand: they seem promising, but almost always fail.
These are “tar pit ideas” — concepts that have lured hundreds of founders, but rarely succeed because of fundamental structural problems.
They sound smart, socially impactful, or even aligned with your own experience, but they lack the ingredients needed for traction.
📉 Common tar pit ideas include:
An app to help friends schedule hangouts
A “more human” or “ethical” social network
A better version of Fiverr or Upwork
A platform for discovering local events
A new gig economy app for microtasks
📌 Why they fail:
They require network effects (lots of users from day one)
They ask users to change entrenched habits (like texting friends directly)
They don’t solve urgent, painful, or high-priority problems
Their “value” is often abstract — not concrete or immediate
✅ How to defend yourself:
Search “startup failed to solve [your idea]” — learn from others' mistakes
Investigate: who already tried this? How did they market it? What failed?
Be honest: does this idea really solve a strong, specific pain — or just sound nice on paper?
❤️ Mistake #3 – Falling in love with the idea and ignoring the market
You’ve had an idea. It feels brilliant. You can’t stop thinking about it.
So you buy a domain name, design a logo, maybe build a website... but you never talk to a user.
This is one of the most dangerous mistakes — because it feels like progress.
But building without validation is like writing a book for an audience you’ve never met.
💬 “I love my idea” ≠ “People need it, want it, or are willing to pay for it.”
📍 Example:
You build a sleek platform to connect people with shared hobbies. You imagine forums, matching features, messaging tools...
But when you launch — no one signs up. Why? Because people already use Telegram, Discord, or Meetup. You solved a problem that didn’t really exist.
✅ How to avoid this:
Don’t overbuild. Start small: a landing page, a Google Form, a Tweet
Talk to 10 potential users before writing a line of code
Ask for reactions, feedback, interest — before asking for money
If people don’t click, don’t comment, or don’t respond, that’s not failure — that’s free insight.
⏳ Mistake #4 – Waiting for the “perfect” idea
On the opposite side of rushing in, there’s the perfection paralysis.
You wait, overthink, and tell yourself:
“I’m still refining it.”
“I haven’t found the right one yet.”
The truth? No idea is perfect before it's in the real world.
Even the best founders say:
“Our product today is nothing like what we started with. Everything changed after talking to users.”
📍 Real example:
Many SaaS companies began as spreadsheets, service offers, or content.
Only later did they evolve into full tools — shaped by feedback, not fantasy.
✅ What to do instead:
Choose one idea — even if it’s small or incomplete
Give yourself a deadline: 14 days to test it
Launch something you can validate: a post, a freebie, a waitlist, or a cold DM
The goal isn’t to get it “right” — it’s to learn faster than everyone else.
🧱 Mistake #5 – Copying without adapting
You find something cool on Product Hunt. It’s going viral. Your first thought?
“I could build that too!”
But copy-pasting someone else’s idea into your market without adapting it is a fast path to frustration.
👉 Every product works in a specific context:
A particular audience
A cultural habit
A timing window
An unmet need
📍 Bad example:
You clone a successful print-on-demand site, using the same templates, suppliers, and pricing.
But your audience already uses a trusted competitor, and your offer doesn’t stand out.
📍 Good example:
You discover a newsletter tool for startups, and adapt it for real estate agents or medical consultants — a niche with very specific workflows and language.
✅ How to do it right:
Study what’s working — and find gaps
Ask: “Who is underserved by this product?”
Can I make it more specific, simpler, cheaper, or more relatable for a new audience?
Copying is not the problem. Lack of context and creativity is.
Two checklists to stay sharp and move smart
Once you’ve seen the traps, the next step is staying alert. These two checklists are here to help you avoid common mistakes and think more clearly about the ideas you’re working on. One is tactical—spot the obvious errors. The other is reflective—challenge your thinking before you commit too much time or energy.
Use them as quick mental filters every time you get excited about a new side hustle.
✅ Common traps checklist: are you falling for one?
Most ideas don’t fail because they’re “bad”—they fail because they fall into patterns that look smart on the surface but never really work. These are classic mistakes disguised as good instincts. Run your idea through this list to spot red flags early.
Common traps to watch out for:
🔍 Deep thinking checklist: is this really a good idea?
Good ideas survive contact with reality. This checklist is for zooming out, slowing down, and making sure your idea is grounded in real logic—not just excitement. If you can say yes to most of these, you're likely on a strong foundation.
Checklist to think deeper and unlock better ideas:
🧰 Use the right tools from day one
Avoiding the traps is not just about mindset—it’s also about using the right tools at the right time. If you want to validate faster, find real user pain points, and test your ideas with more confidence, here’s a shortlist of tools to get you started.
👉 Want a deeper dive?
We’ve put together a full guide on the best tools for validating side hustle ideas, including real-world examples and how to use each tool step by step.