So you've come up with what you believe is a great idea. You are convinced that there is a problem and you have a solution that customers will love. Now, you just need to raise some money to make it a reality. Sound familiar?

For the past 17 years, I have worked with hundreds of aspiring entrepreneurs at Babson College and around the country both in my role as a professor and advisor for the Butler Launch Pad, and in my private practice. This is probably the most common scenario I have come across. Entrepreneurs often overlook the most important question. It's not how to start a business, but MUST start business?

Surprisingly, you are not alone. Searches such as the one from Insights from CB, Tom Eisenman AND Sports Kotashev has found that one of the most common reasons for the failure of new ventures is the lack of a market. In other words, the entrepreneur created a product or service that there weren't enough customers willing to pay for.

Fortunately, this mistake is mostly avoidable with a little market research. Here are three tips to figure out if your business idea is worth pursuing.

Related: Is your business idea good? 5 indicators that it is not

Know who your customer is (and who isn't)

The first step is to find out which constitutes the market for your particular business. Your customers are anyone who will give you money, and you need to know who they are so you can determine if there are enough of them to make the venture worth your time, energy, and money. Why would they be interested in your product or service?

A question that is often overlooked is whether they think they have the problem that the product or service solves. This may seem obvious, but you'd be surprised how many entrepreneurs gather a lot of information from people who will never be customers.

Then, make sure they see it as a problem worth getting paid to solve. I remember trying to sell diesel engines to a Russian truck manufacturer in the 1990s. We explained that we could save them fuel and help reduce emissions. The answer was that diesel fuel was cheap and it was good that we cared about the environment, but they didn't. They would never be customers – they didn't perceive any of these issues as a problem worth spending money on.

Finding out who potential customers are not sufficient; you also need to know what makes them different from non-customers to really know how big your market is. There will always be people or businesses who have the problem but aren't willing to pay to fix it.

In other words, what makes them interested in buying a solution? The answer is rarely demographic—almost no one says, “I'd pay to fix that problem because I'm 28.” Imagine you define your market as 18-40 year olds. This means that someone can say, “Wow, I like the idea of ​​a solution to this, and if I hadn't just turned 41, I would have paid for it.” Demographics are almost never what really make someone a customer.

Related: Be selective with your customers – How to identify and attract your ideal customer

They know what they are willing to pay for

Next, you want to make sure you understand what they are willing to pay for. In other words, what do you have to give them in your solution to make them willing to part with their money? You don't want to waste time and money on features that aren't necessary or won't get your customers to buy.

One thing to understand is how they solve the problem today. If they haven't found a way to solve it, there's a good chance they don't care enough to pay for a solution, no matter what they might tell you.

Next, what do they like and dislike about their current solution? Why are those things important to them? This will help you understand which features and benefits are valued and desired, so you can focus on creating a solution that truly addresses their needs.

Finally, you need to understand which aspects of a solution are key to the purchase decision. What would entice them to buy one solution over another? Why do they use their current solution versus alternatives? Knowing this can ensure that your efforts are focused on the aspects of the solution that are most likely to result in a purchase. Additionally, it will also help you on your way to creating a marketing message that you love resonate with your customers because you know what is important to them.

Related: Why do your customers really buy from you?

Always ask “why”

Both in my work with entrepreneurs and in my previous career working in market and product research, I have learned that the single most important question in understanding potential customers and their needs is the “Why?”

If one person is willing to pay to solve a problem and another is not, the answer to this question will give you insight into what makes these two people or businesses different and is key to determining your potential customers.

You want to understand why some features or benefits are important as well why a solution is important to that particular customer. Customers often want everything. By understanding why, you will understand what they really need.

Finally, people often try to tell you what they think you want to hear. However, to make a decision about whether to pursue an idea, you need the truth, not just something that will make you feel good. It's much harder to explain “why” if the first answer isn't really what they believe.

For some entrepreneurs, it can be uncomfortable get close to strangers and gather information, but it is the best way to understand whether or not your idea is worth pursuing. While a number of factors that can affect the success of a new venture may be out of your control, making sure you do this work in advance can help you avoid one of the more common ones.