4 Signs Your Business Idea is Not Worth Borrowing Money For


Thinking of starting a business? You’re on the right track to building wealth. After all, most rich people got to where they are by running one or more businesses.

Before you get over-enthusiastic, though, ask yourself this question: Will your business become profitable? If yes, go for it. If you need capital but have little in your bank account, you can take out a loan from an authorised money lender in Singapore. This way, you can quickly get the money you need to get your business idea off the ground.

This is a good move if your business idea is profitable. But what if it isn’t? And how would you know if it isn’t? Here are four signs to watch out for.

Your product or service gives you zero excitement

The best business ideas always fill their founders with excitement every single day.  As a business owner, you should have the most passion for the product or service you sell. Without that, it’s a clear sign your business idea will likely not take off. If the owner himself isn’t passionate about his business idea, no one else will be.

Almost no one would want to buy your product or service

One crucial premise of a good business idea is a solid customer base. Without potential customers, you are out of business before it even begins. For this reason, you need to verify if your product or service is marketable and that people will want to purchase it.

You can first ask close friends and family if they will be willing to buy your product or service. If you get mostly no’s, then reconsider your business idea. Tweak your product or service, then test the new version again. Until you get a good number of “yes” answers, your business idea is most likely untenable.

Your business has a very small niche

It’s okay to enter a niche industry as long as you have a projection of substantial profits. But if you don’t stand to earn a lot from the niche, your business idea may not justify a loan. 

Do your market research first to find out if your business idea is potentially profitable in your chosen niche. Evaluate if you have an adequate quantity of clients as well. If you find that you will likely not earn much, consider choosing a more profitable market niche. 

Your product or service capitalises on a fleeting trend

Riding on trends is okay as long as you can continuously make money from them. But if you base your entire business idea on a trend that may go away soon, you’re on shaky foundations. Unless you have the resources necessary to sustain demand for your product or service – even after the trend has died down – your business will likely not survive for a long time. Do not take out a loan for this kind of business idea.

It’s better to have a product or service that is less trendy but has greater utility and longevity. This way, you make sure that your business will stay profitable for the long term. 


Taking out a business loan is often a wise move, but you need to make sure your business idea will be profitable. If it won’t earn you much money, the loan will turn into a liability. You will end up losing a lot of money because of a bad idea.


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