The AI Startup You’re Thinking of Building Might Fail. Start It Anyway.

by Tat Banerjee | Jun 23, 2025
The AI Startup You’re Thinking of Building Might Fail. Start It Anyway.

If you’re in your 20s and dreaming of building your own startup, especially in AI, there’s something you need to know upfront: It’s probably going to fail.

Yep, your side hustle, your big idea, that app you can’t stop thinking about. Chances are, it won’t work the first time. Or the second. However, just do it anyway.

The truth about side hustles, and the dirty little secret no one talks about, is that every side hustle is likely to fail, at least in the beginning.

But that doesn’t mean it’s not worth doing. Failure isn’t the opposite of success. It’s how you get there.

I know because I’ve lived it. My startup failed, and then failed again.

I’ve been building the same AI business for a while now. I’m currently on take 3.

Let me tell you how it went.

Take 1: The Exciting Nothing

jumping to the water Photo by Ian Wagg on Unsplash

The first time I launched my AI-powered translation platform, the buzz was real. We had over 9,000 signups, and that felt incredible.

However… they were all on a free trial. Hardly anyone used the product. And even fewer paid. Roughly 200 people converted, and of those, about 10 customers accounted for nearly all the revenue.

My first total revenue? US$400.

That’s about a 2.5% success rate.

What I learned: Don’t get too excited about free users. They’re curious, not committed. Don’t offer a free trial until you have a core conversion loop because the truth is, curiosity doesn’t pay your bills.

Take 2: The Burnout Build

stressed out.webp Photo by SEO Galaxy on Unsplash

Second time around, I figured out scaling was the problem. Therefore, I re-architected everything.

I hired fast, spent faster, and ended up burning over **US$ 100 K. **

And still? Big mistake.

The team wasn’t right. The focus was wrong. We built things no one asked for, thinking scaling issues killed the first app.

In truth, Take 1 failed because few people converted, and we didn’t retain the few who did.

We failed because we didn’t understand our users. We got distracted by signups and ignored user behaviour.

Take 3: The Quiet Rebuild

building lego Photo by Astrid Schaffner on Unsplash

I’m now on Take 3, and to be honest, it might fail too.

But this time, I’ve changed how I build: we ask questions, talk to users, and focus on learning.

There have been some wins, which I’ll share in the future post.

For now, just know: this version feels more alive.

Giving Up What Looked Like Success

end of the workday Photo by Marten Bjork on Unsplash

When I started this journey, I left a great job—a career most people would kill for.

And when things crumbled? Many of my friends faded away.

I get it. I wasn’t useful anymore. But still, I kept going.

While all this was happening, I was hustling. Hard.

  • Helped a friend build an aerospace startup.
  • Co-created a short-lived podcast.
  • Consulted alternative English-learning tools.
  • Took on odd freelance and product gigs.

These weren’t distractions. These were the jobs that kept me alive. They kept me in the game. They helped me pay rent. Most importantly, they gave me a lens to compare and contrast. I became more selective about who I worked with.

I walked away from paths that didn’t feel right.

Some people were clearly making mistakes I’d already made.

Others were just misaligned, or maybe I was.

Even when I disagreed, I tried to help. I never took it personally if they failed or went another way. Because here’s the truth: Business isn’t personal.

Not everyone is meant to be in your life forever, and you’re not meant to be in theirs.

Were they failures? Sure, But also, no.

None of my ventures made millions. But they made enough to keep the lights on, keep the team together, and keep the dream alive. And they taught me everything.

What I Know Now (That I Wish I Knew Then)

Close-up of a person writing notes in a notebook during a meeting or study session Photo by Matt Botsford on Unsplash

Let me share some things I’ve learned, the kind no one teaches:

  • Build a simple website.
  • Get someone to pay for something–anything.
  • Better yet, get them pay for it twice.
  • High-ticket is great, but low-ticket gives you surface area for luck.
  • Be shameless about your product. No one cares about your idea, only your execution.

At one point, we had a Slack notification every time someone signed up. I remember waking up to 50+ overnight. It felt electric, even though no one paid.

If You’re Just Starting Out

Open laptop with the words ‘Just Start’ displayed on the screen Photo by Dayne Topkin on Unsplash

If you’re starting a business on the side, here’s my best advice:

  • Keep a part-time job while building.
  • Your first milestone isn’t revenue; it’s being able to pay yourself and someone else.
  • Forget about subscriptions at first. Charge once. Make it simple.
  • Most of all: trust yourself. You’ll get better every round.

The Only Real Failure

Yeah. I’ve failed. But I’m still here and still building.

Because the only real failure is never starting at all.

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