In this article, I’m going to show you how to identify a business problem. In doing an academic research, you’ll write and send your research proposal or chapter one to your supervisor but they’ll ask you “what is the gap or what is the problem?”
The reason for this question is perhaps you didn’t state the problem. Or perhaps you stated the solution instead.
Relating this to starting a business, you should always get the problem before you think of solving it.
Entrepreneurs, in their quest to starting a business commits the most common and fatal blunders; thus, trying to create a solution prior to the problem identification. You might have it at the back of your mind that you’ve got the biggest business idea. Have you however actually carried out a research to determine if your idea could be fruitful? Is there the need for that particular product or service in the marketplace? Are there other businesses in the same business who are not doing things right but not ready to change?
If the answer to all the above questions is “YES”, then possibly you’ve got a chance. Otherwise, you might be wasting your resources.
If you actually endeavor to be successful, you should ask yourself what is the problem you want to solve. That’s the first thing to do. This problem would serve as the groundwork for your business.
It may be enticing to stumble upon the ensuing hot business idea you’ve got, nonetheless many others have failed with “such ideas” that have no proof of success.
Before commencing your business, there is the need for you to consider two important issues:
- Your target populace; and
- Your capabilities (things you can do)
Reflect well about the above. Starting a business got to do with passion and planning. For these two, you need a great deal of enthusiasm. The utmost question to answer is, what are you passionate about? Then, what does the people in your locality need?
I have personally done food business before. As a matter of fact, I tried finding a solution to a problem that never existed. Trust me! Food business is a lucrative business. But where I positioned my venture wasn’t the right place.
People with entrepreneurial mindset will always combine passion and what the people need to be successful. If you’re striving very hard to satisfy a need, nonetheless you detest that the work, you’ll completely turn out feeling bitter about the business and starting all over again. If in the pursuit of big goals but there’s lack of need for the product or service to be offered, then there is no point going there because surviving will be dreadful.
Are you still running?
These are some of the big things happening in the world today: internet of things, robotics, artificial intelligence, travel, and cybersecurity. It should be born in mind that, hundreds of businesses have tried to solve this problem, but only through hard work and effort.
After defining the problem…!
Now that you have a favorites list, it’s time to get rid of what you can’t do and stick to what you can. It can be ranked depending on the size of the problem. If you need several months to bring your ideas to life, make sure you have the skills and abilities to implement them. It’s good to start small if you’re a beginner and just want to keep your balance. If you’ve done some businesses before, then move a step further.
Decide what problem you need to fix, what you can fix, and how you are going to fix it.
Know your competition
If your problem is established, there is the likelihood that others have made the move to solving the same problem.
Check with businesses that cannot solve this problem and find out reasons for their failure. Are they trying to get there as quickly as possible? What did they focus on? Did they get the idea before people called for it? Did they set up a somewhat high price?
Use the information you’ve gathered not only to dodge nearly same problems, but also to keep your business going.
To start a new business, do not try to compete with others. Try as much as possible to lead the market. Therefore, you need to know how to beat the competition and take charge.
However, if you can still point to other competitors around, get a good overview of what they have and the price they’re willing to give it out. Possibly try using their product to determine where they do best and at what point they fail.
If you’re starting a new business, don’t just try to compete with other people. Try to control the market. To achieve this, you need to understand how you can outperform your competition.
Develop your business story
Prior to building your business, it is necessary to outline the problem and its solution. This is what you would be giving to those in your network, investors, affiliates, and friends. What is your most important idea and how different is your business solving this problem?
Give out your story like never before so that it can be repeated every day without it getting old and free of boredom.
Now you have a specific identified problem, which sets you apart from others as well as efforts to solve it, these are just a few of the highlights of what many self-styled entrepreneurs couldn’t do, which led them to catastrophe.
So, if you’re reading this article, you should have it at the back of your mind that:
Problem = Solution
If you cannot understand this, then starting a business is not for you. If you’re already into business but you cannot understand this, then you have to kiss your entrepreneurial career goodbye.