Addressing the Harsh Feedback on My Latest Video
It’s surprising how often perspective shifts in the startup world. What feels prudent at first glance can become the cornerstone of a thriving venture.
The comments section of my recent video titled “Seven Tempting Startup Ideas I'd Never Build” sparked quite a conversation. With over 225 comments, many viewers voiced strong opinions about the ideas I presented. In this post, I clarify misunderstandings and dive deeper into why I caution against these popular yet risky startup ventures.
The Seven Ideas to Avoid
In the video, I highlighted seven ideas that I believe aspiring entrepreneurs should steer clear of:
- Ad-supported anything
- A percentage-on-revenue model
- Inventing a new category
- B2C (Business to Consumer)
- Two-sided marketplaces
- Bootstrapping a venture-scale business
- AI models
Many viewers felt this list ruled out nearly every path. As Mario exclaimed:
"Bro, that’s practically everything."
Instead, these seven points merely scratch the surface of misguided enthusiasm that can derail your efforts.
The Iceberg of Startup Ideas
If discouraging these specific concepts feels like a sign to quit entrepreneurship, think again. The startup landscape is vast—ideas range from B2B software to hardware solutions, consulting firms to information products, e-commerce stores to niche service platforms. None of these are inherently excluded by my seven-point list. These cautions are guardrails, not stop signs.
For proof, visit TinySeed Portfolio and explore the 204 companies we’ve invested in through our accelerator. These businesses showcase strategies with higher probabilities of success. In contrast, the models on my “never build” list tend to have dismal success rates, often below one in a thousand. Recognizing which startup ideas come with steep uphill climbs can save you precious time and resources.
Shared Experiences: The Double-Edged Sword
When I warn against certain models, some founders bristle. They’re set on building a two-sided marketplace or crafting an AI-driven solution. But just as parents caution teenagers away from risky behavior, I’m here to flag potential pitfalls.
Countless founders echo these cautions. Omar’s experience with a two-sided marketplace cost him time, energy, and money—an all-too-common story. Sam adds that while two-sided marketplaces sound sexy, they’re incredibly hard to execute and often yield little return on investment. These shared experiences illustrate why many startups repeat the same mistakes and end up frustrated.
The Realities of Two-Sided Marketplaces
Two-sided marketplaces are complex creatures. Launching one without an existing audience is akin to playing on “exponential hard mode.” To succeed, you typically need one side of the market already in place—customers, suppliers, or a strong community. Absent that foundation, you’ll struggle to achieve the critical mass required for a sustainable marketplace.
This perspective often clashes with budding entrepreneurs’ desires. You might feel boxed in by my advice, but the intent is supportive: I wish someone had shared these insights with me earlier. Recognizing these hurdles upfront sets realistic expectations and helps you choose a more navigable path.
Understanding Startup Success In Context
Some commenters questioned my stance on B2C, like Matt, who said his mobile app pays his bills with minimal ongoing work. While that’s commendable, his case is the exception. If 50 to 100 others tried the same approach, most would stumble. Mobile apps often rely on residual content, hefty marketing budgets, or pre-existing audiences. B2C ventures typically have lower price points and higher churn, making multi-million-dollar SaaS ambitions unlikely in that arena.
My focus is on repeatable, sustainable B2B SaaS businesses that can scale to seven or eight figures in ARR. If your goal is a quick lifestyle income, the indie hacker community offers many examples of modest B2C wins. Just be clear about your end goal before you build.
Dissecting the Entrepreneurial Bubble
One viewer, known as 32, accused me of being “too privileged and in my own bubble.” I appreciate the sentiment but push back on the assumption I’m disconnected from real-world struggles. When I started, earning an extra $1,000 a month was life-changing. Today, my mission is different: to help founders build B2B SaaS companies capable of generating seven-figure ARR and beyond. If you’re merely chasing a thousand extra dollars each month, the indie hacker space might better suit your needs.
Insights into Unexpected Successes
Ricardo reminded us that there’s no one-size-fits-all formula for startup success. He’s right. Some niches you’d never predict become sustainable seven- or eight-figure businesses. That’s why validation with experts and potential customers is essential. Use frameworks like the 22200 research method to ground your startup ideas in solid foundations before you build.
Moving Forward with Purpose
As you consider future ventures, remember that knowledge empowers choice. Avoid rushing into ideas with stacked odds against you. Reflect on shared experiences, validate your concept thoroughly, and know your target success metrics.
Key takeaway:
- Be selective and strategic with your startup ideas; focus on paths with higher success probabilities rather than jumping into every tempting model.
What seasoned advice has shaped your entrepreneurial journey? Share your thoughts in the comments below!