How to know if your business idea is worth pursuing

There was a time when calling yourself an entrepreneur was synonymous with saying you can’t get a job. No mom wanted to hear her son say they want to grow up and become an entrepreneur.

“Dumb kids” were the only ones expected to take a chance with entrepreneurship. 

Thankfully, those days are gone. 

Nowadays, being an entrepreneur is almost as cool as being a rockstar. 

Kids in high school want to drop out so they can ride the wave of entrepreneurship. Thanks to the success of Jack Ma or more homegrown individuals like  Jason Njoku, Patrick Ngowi, Lorna Rutto, and many others, one can see why entrepreneurship is the new cool title to add on your IG profile.. But just because it’s possible for anyone to start a business doesn’t mean everyone should.

Don’t believe every REEL you see on Insta!

You may see a lot of “success stories” on Instagram, but the truth is, many startups in Africa never make it past that one year mark let alone to their first million dollar. Why? That’s what we’ll explore in this article.

The 4-step litmus test to see if your business idea is worth pursuing

Through our research, we’ve discovered most entrepreneurs don’t get their happily ever after because they have no real market value. To ensure you don’t fall into the pit of startup failure, here are four tips that can help you determine whether your business idea is worth pursuing.

Step #1 – Check to see if your idea solves a problem or fills an existing gap

Customers often have needs and pain points. They, therefore, constantly seek businesses that can meet those needs and address their pain points. Hence, you should ask yourself, "does my business seek to solve any prevailing problem?" Get yourself in front of your target market and ask them what they need. When you know the need that connects most of them, you'd be able to come up with the idea that resonates with their need.

Step #2 – Ensure your target market has  purchasing power

It is one thing to have a market for your business idea; it is another to have a market with purchasing power for your idea. Knowing your target's purchasing power helps you determine how you can effectively price, market, and sell your product or service. Customers may not be willing to buy overpriced or ridiculously underpriced products or services.

Step #3 – Check to see if you have an unfair advantage over your competitors

Ignoring competitors is one of the greatest mistakes a young entrepreneur can make. You can never outrun your competitors unless you have a unique selling point that gives you an unfair advantage over them. To do this, ascertain their product or service, understand their pricing strategy, and understudy their solutions.

Step #4 – Analyse your business model to see if it can operate successfully without you

Is it a business that constantly requires you always to be there? If yes, then it may not be worth it. Consider it this way: what if you fall sick or have a reason to travel abroad for a few weeks? Does it mean the business will stop running? A business idea that is worth pursuing will give you the freedom to determine your level of involvement in it.

A final thought:

Being a successful entrepreneur goes beyond being passionate. Of course, passion is an integral part of achieving entrepreneurial success (or any kind of professional success). However, it would help if you also were sure that you're running a business rather than working a job. Follow the tips provided here, and you'll be on your way to becoming a successful entrepreneur.

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