By Fernando Berrocal

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Every founder is aware that they must determine the intricacies of their startup's offering; and the reasons why it excels in those specific areas. The more clearly you can define the challenges you will encounter, the better for your overall business operations. It is crucial for the health of your enterprise to anticipate pain points, and prepare plans for how to deal with circumstances with no obvious solution.

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The problem statement serves as a hook to draw potential clients to your business offering. It serves as both the foundation for all that you do and a justification for other elements. It turns out that people prefer a compelling narrative over a dry set of statistics when learning about a problem.

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For instance, Netflix was a business that recognized the challenges consumers experienced when attempting to rent both films and TV series.  Even as a fledgling startup, Netflix realized how annoying video stores were–and made the decision to eliminate them by shipping DVDs to your mailbox (without incurring late penalties). Thus, their team developed an accurate, deceptively straightforward problem statement. Note, however, that the solution is left out. A strong problem description emphasizes the audience's need for change, so they will be more receptive to your solution. 

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Don't just scan the surface when looking for a problem statement for a business plan. Ask questions to learn more about the issues that people are facing in different scenarios.  Crafting a stronger story requires more work, but the reward is worth it, since you can engage your audience emotionally and excite them about what you're doing.

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1. Choose the most crucial concern or issue.  Even though your product might have several advantages, concentrate on just one of them at a time. It's preferable to start your startup pitch by highlighting the largest problem that your solution solves (as of now). Keeping track of the hundreds of pitches that arrive monthly is difficult. Identify a single business that offers a solution and have faith in it.  As an aside, an employee may feel more valued if their compensation is increased, but for other people, the need to have their hard work acknowledged may be much more significant.

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You must concentrate on the highlights of your pitch, and save other specifics for later.  Remember: most investors won't remember every element of it.  Additionally, keep in mind that one issue is typically resolved at a time. All of your matters cannot be dealt with at once. It doesn't matter how many other problems you take on; you must focus on the one that counts the most. Convenience, variety, and cost are just a few of the issues that Netflix addresses. Since Netflix is more expensive than its rivals (video streaming), not every factor is as critical. Although we aren't disregarding the other issues, we want to concentrate on the urgent ones.

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2. Up the agony. There are numerous business issues, some of which may be more severe than others, but they are all equally serious for the startup.  The more difficult the actual problem is, the more efficient your solution will be. It is impossible to emphasize the significance of a strong problem statement for a business plan. Instead of just addressing any problem, concentrate on the specific details.

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3. Make your story relatable to other people. We all make decisions based on emotions, and your product's vision is no different. The more your audience can identify with the story you're telling, the more likely it is that they will comprehend it and want to get involved. Startup founders frequently share a relatable tale.

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4. Describe your journey.  Founders frequently get caught up in sharing their experiences, which can help potential customers empathize with them. To make it more relevant, the entrepreneur tells the story of how they were personally impacted by a problem. You can play the lead role in your tale, which will appeal to and engage audiences. Think of an issue that anyone can relate to. If you're having trouble coming up with a narrative for your product, neither the business nor the things it sells may be relatable. Do not compel one in this instance. Knowing what kind of situation you are in is crucial when you are experiencing difficulties. Different approaches will be more effective for various problems, but if none of them work, don't be concerned.

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Creating Your Problem Statement

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You now understand how to define the business issue, explain it, and build a narrative around it. We may now purposefully craft our problem statement in the following steps.

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1. The biggest issue faced. In the Netflix example we discussed above, their team realized their target customers found it inconvenient, and would quit using it, so the startup team was determined to find an adequate solution to that issue.

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2. Increase the pain that causes that issue.  Going to the video store wasn't always that simple and convenient–and still isn't today. Before you can even rent your movie, you have to deal with a lot of inconvenience (such as traffic, poor weather, etc.) and aggravation (not being able to rest or do other things).

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3. Tell a story.  Netflix then created a narrative that would appeal to our audience's pain points; and began testing those stories. Even if they know the basics of a good problem statement, it's still possible to mess up. Assume that your first few times pitching your startup will be spent refining what exactly is wrong. Never tell a client to try and find the perfect word right out of the gate. It's too hard for most people, especially new writers. You need something that will entice readers to read the problem statement to create a strong one. Even if your facts are accurate, that doesn't necessarily mean they are persuasive. Consider who might be irritated by the existing circumstance. This figure may be the focus of a story, or we could use them as an illustration of a member of our target market. Don't add unnecessary information. If you want to tell the story, keep it straightforward. When delivering a problem statement, your objective should be to capture the audience's interest and make the answer seem all-encompassing.

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