By Dan Boudreau

If you’re starting or buying a business, I hope it’s one you’re passionate about. But passion alone will not keep your business alive.

It’s a myth to think that a business will thrive just because the owner is enthusiastic about it. Sales and cash flow are the lifeblood of any small business. Unless paying customers really want your products or services, you might be pouring money into a black hole.

Some start-ups are wildly evangelistic about their business idea, neglecting to weave customer needs into the vision. If your passion is so loud you can’t hear your customers, you’re headed for trouble.

Prior to starting a business, how can you be certain that customers will buy? One way is to validate your market. Here are a few ways to test the waters to determine whether your products or services are likely to sell once you open the doors.

1. Research your competitors. If customers are buying similar products or services from other businesses, you can be reasonably sure that the money is available, at least for similar items.

2. Research similar markets. If you’re considering bringing new products or services into your community, find out how are they are faring in other communities with comparable demographics.

3. Survey potential customers in your target market. Surveys work best if they are brief, consisting of a few well-crafted questions that help you learn about customers wants and needs. They also open the door to get you communicating and networking.

4. Obtain a written commitment to buy from you, once you start your business. This is often referred to as a “letter of intent.” A letter of intent is a written statement of intent to buy your product or service, usually during a certain time period. This is not appropriate for every type of business, but when suitable it can help remove some of the uncertainty associated with starting a new business.

5. Test the market. For some new businesses it is possible to test the market by putting products or services in front of customers to determine their response. Ultimately, customers vote with their money. Sales are the most reliable form of market validation; almost everything else short of actual sales can be dreadfully misleading.

Absolutely get into a business you’re passionate about. Your love for your work will help to make each day special and enjoyable. But be sure to take time to really listen to your customers, because it is they who will fuel your business success.

Is it really important to be passionate about your business?

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