Entrepreneurship: Identifying a problem
Over the years I have had discussions about a lot of ideas with a lot of entrepreneurs. From how different people judged worthiness of an Idea, I ended up building a framework. I am pretty sure better frameworks exist out there, but I am gonna start with this one and iterate to see where it goes.
The idea is to answer a set of questions and validate those answers.
What’s the problem from a user’s perspective?
For any problem to be worth solving, it has to exist in a user’s life. Most problems are identified from personal experiences but there are enough possible sources of inspiration. But being able to define an exact problem statement for a very specific user is important. Most of the time we keep changing the problem and the user to fit our imagined solutions. While iterations are important, mixing up two different problems of two entirely different set of users is hazardous.
Do enough people face the same problem?
One of the reason we end up iterating the fundamental problem statement and the user who is facing that problem because we are not able to define a large enough target audience for the problem to matter. It is hence important that before you go after chasing a solution you shall ensure that enough people are affected by the problem that it is worth investing your time and efforts in. Some times, a different perspective of the same problem leads to a user base large enough that an insignificant problem becomes significant.
How important is the problem in user’s life?
There are certain problems people can live with. Sometimes they don’t even know they have those problems. The fact that ultimately you would be asking the user to invest their time, effort or money in your solution it matters that the problem means enough for them to do that.
There are times when the problem doesn’t really exist and you are literally creating a new market as in case of Apple I. In such cases the problem isn’t directly related to your solution i.e. people weren’t looking for a personal computer but there were certain things that they did on regular basis that computer could make easier. In those cases, understanding most important of those problems which your product may solve is the key.
Is the problem related to a bigger trend in ecosystem/industry?
Nothing in the universe exists by itself. Any problem that exist must exist in an ecosystem/industry. If it is a problem for the end user then there must be someone who is in a position to solve the problem. Generally, a user’s problem isn’t being solved by someone else because there is a larger trend/constraint in the ecosystem that inhibits other people from solving the problem. Also, these trends/constraints lead to a larger problem that affects the ecosystem/industry and any solution that is developed will have to solve the industry level problem too.
Why is it that a new alternative is required to solve the problem?
No one is really waiting for you to solve their problems. There must be an existing solution that users are making do with. It is possible that whatever solution that is, it is enough for the end user to live with. In a lot of cases, what people build is just another solution in an existing market. Even in those cases it is important to understand why a new alternative is required and may survive. For example, in such a situation, the total market size available and market covered by existing solutions create an opportunity for a new solution.
If satisfactory answers to all these questions are available then I think the problem is a valid one and worth solving. But there is still a very important question that you have to answer for yourself.
Are you the right person to solve it?
Solving a problem, as an entrepreneur, isn’t a piece of cake. It is going to take everything you have and then demand more. It is hence important that you are passionate enough about the problem and you have necessary skills required. You will need to work very closely with people, you must be passionate about all the people involved. Your users, industry leaders, possible business associates and the team you will have to work with. You must be able to empathise with all of them including the industry leaders of current ecosystem even if that’s what you want to disrupt because these people can provide you necessary information for your survival.
You can either have a market leverage i.e. you know the market well or you could have technology that you can use to solve the problem. Having at least one critical leverage will help you win critical battles which will help you survive in the long run.
