A problem statement is a clear and concise description of the problem or gap your company wants to solve for your customers. It helps define the scope, goals, and value proposition of your product or service. Creating a problem statement is an important step in the business planning process because it guides your research, design, and validation efforts. In this article, we’ll show you how to create a business problem statement using some of the best tools and methods available.
Identify your target market
Before you write your problem statement, you need to know who your potential customers are, what they need, and what they want. To identify your target market, you can use various tools and methods such as market segmentation, customer personas, surveys, interviews, and online platforms. The goal is to gather as much information as possible about your customer segments, including demographics, behaviors, preferences, pain points, and goals. This will help you narrow your focus and understand the context and relevance of the problem.
define the problem
Once you have identified your target market, you need to define the problem you want to solve for that market. You can articulate your problem using a variety of frameworks and techniques, including: B. A problem statement, five whys, or problem tree. A problem statement formula is a simple way to describe a problem in sentences that follow this structure: [customer segment] has [problem] because [reason]. For example: “With high demand and low supply in urban areas, young professionals struggle to find affordable and flexible housing options.” The 5 Why Questions Asking five times is a way to dig deeper into the root cause of a problem. . For example, “Why do young professionals have difficulty finding affordable and flexible housing options? Because the rents are too high. Why are the rents too high?” Because demand exceeds supply. Why is demand higher than supply? Because population is growing faster than housing stock. Why is population growing faster than housing stock? Because of trends in urbanization and immigration. Why are urbanization and immigration trends increasing? A problem tree is a visual tool that allows you to represent the causes and effects of a problem in a tree-like structure. For example, the trunk of a tree is the problem, the roots are the cause, and the branches are the effect.
recognize your problem
Once you have defined your problem, you need to validate it with your target market. You need to make sure that the problem is real, relevant, and urgent to the customer, and that the customer is willing to pay for the solution. You can validate your problem using a variety of methods, including customer interviews, surveys, landing pages, and experiments. The goal is to test hypotheses and assumptions and collect customer feedback and data. This will help you improve your problem description and avoid wasting time and resources solving the wrong problem.
write a problem statement
Finally, you need to create a problem statement based on your research and validation. It must be clear, concise, compelling, and communicate the value proposition of your solution. To do this, use simple and specific language, focus on the customer’s perspective and needs, emphasize the benefits and results of solving the problem, and avoid jargon and abbreviations. Please also include relevant data and evidence to support your claims. A good problem statement should answer the question, “Who is the customer?” what is your problem? Why is it important to solve it? How will your solution help them? Example: “The current market is too expensive, rigid, and inconvenient, so young professionals are looking for affordable solutions that suit their lifestyles and preferences.” They need affordable and flexible housing options.” Our solution is a platform that connects them with landlords who offer short-term, customizable rental agreements. Save money, time and effort. ”
