Current in Entrepreneurship Blog

You’ve come up with a brilliant business idea. You’re convinced there’s a problem, and you have the perfect solution. Now, all you need is funding to bring it to life. Sound familiar?
As an entrepreneur and business coach, I’ve worked with countless founders who jump straight into launching their ventures—only to realize too late that they’ve overlooked the most critical question: Should I start this business? Not how to start it, but if it should be started in the first place.
According to research by CB Insights, Tom Eisenmann, and Kirol Kotashev, one of the top reasons startups fail is a lack of market demand—meaning there simply aren’t enough customers willing to pay for the product or service.
The good news? You can avoid this pitfall with some front-end market research. Here are three key tips to determine whether your business idea is truly worth pursuing.

1. Identify Your Real Customers (and Who They Aren’t)

Your customers are the people who will actually pay you money. Understanding them is crucial—not just in terms of demographics, but also their behaviors and motivations.

Many entrepreneurs make the mistake of gathering feedback from people who will never be customers. It’s not enough to know who has the problem your business solves; you must confirm they see it as a problem worth paying to fix.

For example, when I tried selling diesel engines to a Russian truck manufacturer in the 1990s, I emphasized fuel savings and lower emissions. Their response? Diesel was cheap, and they weren’t concerned about emissions. They were never going to be customers because they didn’t see the “problem” as a real issue.

Your market must be large enough and willing to spend money to solve the problem. Otherwise, no amount of great product design or marketing will make your venture viable.

2. Understand What Customers Are Willing to Pay For
Once you’ve identified your true customers, you need to figure out what they’ll pay for. This means understanding:

• How they currently solve the problem (if at all)

• What they like/dislike about their current solution

• The key factors influencing their buying decisions

If potential customers don’t already have some way of addressing the issue—even an imperfect one—it’s a sign they may not care enough to pay for a solution. Additionally, if your product offers features customers don’t value, you risk spending time and money on things that won’t drive sales.

3. Always Ask “Why?”

One of the most powerful tools in market research is simply asking why?

• Why is one customer willing to pay while another isn’t?

• Why do they value certain features over others?

• Why would they choose your solution over an alternative?

Digging into these questions will help you uncover the real motivations behind purchasing decisions. Customers often say they want everything, but when you understand why, you’ll know what they actually need—and that’s where your focus should be.

The Bottom Line

Entrepreneurs often avoid direct customer research because it can be uncomfortable or challenging. But skipping this step is one of the biggest reasons startups fail.

While some factors in business success are beyond your control, validating your market before you launch is one you can control. By taking the time to understand your customers, their needs, and what they’re truly willing to pay for, you can avoid one of the most common pitfalls in entrepreneurship—and build a business that thrives.

Have you validated your business idea yet? Drop a comment below and share your experiences!