Always Be Solving

Whenever I see startup ideas and pitches I really look at one crucial element: what is the problem you are solving and how well can you articulate it. This may seem a simple point, but I’ve heard many a pitch where either I don’t understand the problem, or it’s just an idea, rather than an actual problem being solved. It’s why in my career when I have ran sessions scoping MVPs the first thing we cover is what it the problem and write it in big bold letters to ensure that whatever we scope, we are focusing on making it that we are solving something. So why is it so important yo have a clear problem you’re solving?

Why a Clear Problem Matters

1. Market Validation A clear problem provides a straightforward path to market validation. Startups can test their hypotheses with their target audience that recognises and feels the problem. Feedback is more precise, and adjustments can be made quickly to align the solution more closely with the market’s needs. This iterative process is essential for developing a product-market fit quickly.
2. Bootstrapping Resources Startups typically operate with limited resources. Identifying and solving a clear problem helps in focusing efforts and resources efficiently. It reduces the risk of spreading too thin across multiple directions. With a well-defined problem, every strategy, whether it’s marketing, product development, or sales, becomes more focused on the problem and customers at hand.
3. Investor Appeal Investors are more likely to back startups that solve clear problems. The reason is simple: these startups have a more straightforward path to profitability. When a problem is evident, the market size, customer base, and potential revenue streams are easier to identify and project. This clarity makes it easier for investors to see the potential return on their investment.
4. Competitive Edge Let’s face it, for most startups there is someone doing something similar to what you are doing, which is fine by the way. Just think how many gym chains exist and thrive. But it means differentiation is key. Startups that solve a specific problem can carve out a niche for themselves. They become specialists rather than generalists, which can be a significant competitive advantage. By solving a problem better than anyone else or in a different way (Pure Gym vs. Bannatyne Gyms for example), they build a loyal customer base and a strong brand reputation.

From Problem to Idea to Solution

So I’d like to think it’s clear why solving a problem is so important to startup. But I also realise that it’s very easy to say and I’ve not mentioned the how. So here are a few tips to develop the problem your solving into an idea and a solution:

1. Identify the Problem Some of the best startups I’ve seen, the problem is one that the founder has experienced personally. It doesn’t have to be, but there is always a level of authenticity to the pitches I’ve seen where it a problem to founder has faced. It also helps to identify and engage with potential customers early to conduct surveys, and analyse the market trends to pinpoint a real and pressing problem.
2. Validate the ProblemNot all problems are big enough to warrant a solution after all. Ensure the problem you want to solve is widespread enough to warrant a solution. Validation can come through direct feedback, market research, and by observing competitors.
3. Develop a Solution Create a solution that directly addresses the identified problem. Always try and embrace Agile principles while you build and keep the customers engaged throughout the build to ensure that you are fixing the problem rather than going off on a tangent.

In conclusion, while ideas spark the journey of a startup, it’s the clear identification and solving of a real problem that fuels its growth and success. By focusing on a tangible problem, startups can create meaningful solutions that resonate with their audience, giving you the best chance at long-term sustainability and success.