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Startup Failure Postmortems and Fear12 min read

The Side Project That Became the Main Project (and the Reverse)

Side projects that become main projects, and main projects that fade into side ones, follow the same underlying pattern: the team did not notice the signal early enough, and by the time they did, the transition cost was high. The lesson is not which path is right. It is that paying attention to where the energy and the customers actually are beats clinging to the plan.

Written by Yashveer Singh, founder of Yashveer Labs.

What you actually need to know

  • Side projects that take off, and main projects that fade, are both stories of missed signals.
  • The signal is usually quiet and present for months before the team acts.
  • The cost of acting late is higher than the cost of acting early, in both directions.
  • Not every successful side project should become the main project. Some should fold in. Some should spin out.
  • The pattern is paying attention, not picking a direction in advance.
PatternCommon causeRight response
Side project takes offSide project solves a real problem fastHonestly evaluate viability before pivoting
Main project fadesCustomer interest plateauedAcknowledge early, redirect resources
Both running parallelBoth have real demandDecide which has the better long-term thesis
Side project distractsFounder boredom, not market signalStop it and refocus on the main project
Pivot too lateSunk cost, ego, slow signalsBuild dashboards that catch the signal sooner

The core argument

I have watched the same story play out in two opposite directions. A team builds a main product, builds something on the side for fun, and the side thing takes off. Or a team builds a main product, it stalls, and a small experiment they were not paying attention to grows quietly until it carries the company.

Both stories are about the same skill: paying attention to where the actual energy is, separating signal from vanity, and being willing to act on the data even when it contradicts the plan. The teams that do this well change direction within a quarter of the signal becoming clear. The teams that do this badly take a year, by which point the cost of the change has compounded.

The reason it is hard is not technical. It is emotional. The team has invested time and identity in the main product. Customers who joined for the main product have expectations. Acknowledging that the side project is doing better requires letting go of something. Most teams resist that for longer than the data justifies.

The other half of the difficulty is that not every signal is real. Side projects often look great in their first weeks because they are new, small, and getting attention from a different audience. The question is not whether the side project had a good month. It is whether the leading indicators look better than the main product's indicators across three to six months of comparable data.

The patterns that drive the switch

The side project takes off

Common pattern: the founder builds something small and personal. It solves a problem the founder has. Other people have the problem too. The side project gets organic signups. The retention is different from the main product. The conversations with users feel different. The energy is different.

The team faces a fork. Fold the side project into the main one, spin it out as a separate business, or commit to it as the new main project. Each is correct in different circumstances. Picking right requires honest analysis of which one has the better long-term thesis, not just better recent metrics.

The main project fades

Less obvious but more common: the main project is stable, the team is busy, and everyone is shipping features. Customer growth has flattened. Retention is fine but not great. Nobody mentions the product unprompted. The team keeps building because shipping feels like progress, but the underlying signal has plateaued.

This is harder to acknowledge because there is no dramatic moment. Just a slow erosion. The teams that catch it early have leading indicators they trust. The teams that miss it wake up two years later wondering why the company has not grown.

Both running parallel

Sometimes both projects have real demand and the company is genuinely doing two things. This is sustainable for a while and almost always ends badly. Teams that try to do two things at once usually do both badly. The discipline is to pick one, even when both look promising.

How long the switch takes

StageRealistic timeCommon but wrong assumption
Recognize the signal1-3 months"We'll know when we see it"
Decide what to do about it1-2 months"We can decide in a meeting"
Communicate to team and customers2-4 weeks"Just announce it"
Reorganize work and priorities1-3 months"Move fast"
Refocus the team's energy3-6 months"Same team, same speed"
Total: from signal to new direction6-12 months"Within the quarter"

What to measure before deciding

  • Organic growth rate, not paid acquisition.
  • Retention curves at 30, 60, and 90 days.
  • Unprompted mentions in customer conversations and social channels.
  • The shape of the customer base. Concentrated or distributed.
  • The energy and enthusiasm of the team across both projects.

Expert opinion

The hardest part of pivoting toward a side project that is working is not the strategy. It is the conversation with everyone, including yourself, about why you spent a year on something else. The hardest part of admitting the main project has faded is not the strategy either. It is the same conversation. Both require honesty that founders find hard to give themselves. The teams that get this right do it earlier than feels comfortable.

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Yashveer Singh, founder of Yashveer Labs

How this played out on a real project

A team I advised had been building a B2B SaaS for two years. Growth was steady but plateauing. One of the engineers had built a small developer tool on weekends and shared it on a forum. It got 5,000 GitHub stars in three weeks. The team's first instinct was to ignore it because it was "not the business."

We looked at the data together. The main product's organic signup rate had been flat for six months. The dev tool was getting unprompted shoutouts daily. The retention on the dev tool, even unmonetized, was higher than on the main product. The signal was clear if anyone wanted to read it.

The team chose to spin out the dev tool as a separate company, not fold it in. The main SaaS kept running but with a leaner team. Six months later the dev tool had raised on better terms than the main SaaS ever had, and the main SaaS was doing better with focus than it had with the founder's distraction. The pattern lines up with the pivot decision framework and the pivot that came too late.

Common mistakes

  1. Ignoring a side project that is showing real signal because it does not fit the plan.
  2. Pivoting to a side project on the basis of a single great month.
  3. Trying to run both projects at full intensity and doing both badly.
  4. Misreading vanity metrics on a side project as real signal.
  5. Failing to acknowledge that a main project has faded because of sunk cost.
  6. Spinning out a side project that should have folded in, or vice versa, without honest analysis.
  7. Letting the founder's boredom with the main project drive a side project that has no real signal.

A 90 day plan to evaluate the signal

  1. Weeks one and two. Build the dashboard. Organic growth, retention, unprompted mentions, conversation quality. Across both projects.
  2. Weeks three to eight. Watch. Do not decide yet. The signal needs time to be clear.
  3. Weeks nine and ten. Compare. Be honest with yourself about what the data is showing.
  4. Week eleven. Decide. Fold in, spin out, commit, or refocus. Pick one.
  5. Week twelve. Communicate to the team and to customers. Reorganize the work.
  6. Ongoing. Trust the data more than the plan. The teams that survive this kind of inflection point are the ones that read the signal early. The discipline is the same as in the over-engineering trap: be willing to follow the evidence even when it contradicts what you wanted.
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Why you should hire Yashveer Singh for this

The kind of work this article describes is the kind of work I do every week. Production deployments, scaling decisions, the architecture choices that compound over years. I am Yashveer Singh, founder of Yashveer Labs. If you need this done, I do not need to be sold on the brief. Send me what you have and I will tell you what it actually takes.

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