Entrepreneurship - Problem Statement

A problem is a bad thing, right? Not necessarily. If you're trying to get hired to do a project for someone or start up your own business to provide various products and services to people, you have a clear problem you are trying to address.

The biggest issue I see with problem statements is that they generally come across as solutions or tritely state that the lack of this specific solution is a problem. In theory, it is great to be positive and go right to what you recommend in order to make your communications as clear as possible, but if there's no established problem, then no one will be listening, no matter how polished the sales pitch.

You have to bring attention to the imbalance, tension, or pain that exists in order to be able to show that your recommended solution will counteract it.

The following is a list of questions to ask to help define the problem. Without knowing the answers to these questions, the attempted start-up business is doomed to fail.

• Context - when does the problem occur?
• Customers - who has the problem most often?
• Problem - what is the root cause of the problem?
• Emotional impact - how does the customer feel?
• Quantifiable impact - what is the measurable impact (units)?
• Alternatives - what do customers do now to fix the problem?
• Alternative shortcomings - what are the disadvantages of the alternatives?

Look at each question and answer them honestly. Hopefully, an entrepreneur has a passion for their business, but sometimes that passion can create a blind spot, where it's difficult to be honest with how good the proposed new product/service is. Include some other people in the process who are willing to be honest in answering the above questions.

If you don't know when the problem occurs or who it occurs to, stop right there. Your target customer needs to be clear since they are the ones you hope will pay you to solve their problems. Knowing that there is a problem is one thing, but knowing what is causing it is something else. A more elegant solution will be to address the root of an issue rather than just the symptoms.

People are emotional. They're also logical. Sometimes one side of the psyche wins out. Sometimes the other one does. How much better is it if you can make both emotional and logical pleas?

If you see a problem, chances are someone else does, too. Sometimes problems are small enough that the big players in the market don't find it worth their time to address the niche. As you look at the current alternatives to solve people's problems, consider what both works well and poorly about those current solutions. You need to be able to find something you can do that they can't (or won't).

There are various ways of implementing a competitive solution to a problem. Sometimes the first person to think of an idea becomes known, and the first-mover advantage is enough to carry them in front of others who come later. But more importantly, it is important to implement a solution that is difficult for others to copy. Creating the solution is a topic for another day, but it does start with understanding other current solutions clearly in order to figure out what they are doing wrong so that you can suggest a better way.