What is the problem statement for your new business idea?

Discussions About Creating Your Problem Statement

A problem is a situation that needs to be corrected. It can be experienced in a variety of ways but is looked on as a discomfort, or a pain of some sort. In the early days of the PC industry, computers were very expensive, having gone through many hands before reaching the consumer.

The “street price” to the end-user for an IBM PC was around $3,000, but the components themselves were worth around $600. Michael Dell saw this as a problem and boiled it all down into one statement, “I started the business with a simple question, how can we make the process of buying a computer better?”

An important early phase in analyzing your opportunity is creating your problem statement. This step is about carefully refining vague or general ideas, which can come from brainstorming, mind mapping, and the white-boarding of all your discussions surrounding the problem.

Then you need to clearly define your initial observations, drawing on domain expertise and research of existing literature, and generate a concise problem statement like Dell’s.

Consider these questions:
– How do you define the problem?
– Who decides there is a problem?
– Who owns the problem?
– What are the solutions?
– Who sees this problem too?

SOURCE: Roadmap To Entrepreneurial Success