Breaking Down the Problem and Solution Statements

Think about the answer to the question “What problem is your startup solving?” for a minute.

Does your answer include creating a better version of an existing product or chasing an untapped market opportunity? If it did, you’ve got the answer all wrong.

The problem you go after acts as the focal point of your business- it is the reason you do what you do. A problem statement is a concise, impactful description of this very pain point that you are addressing. It has three primary aspects:

What is the problem?
Who has this problem?
Why is this a problem?

Unless your problem statement answers these 3 questions, it will be hard to generate enough interest in your solution, even if it is revolutionary. The problem statement precludes almost all other aspects of your startups.

Breaking Down a Good Problem Statement

Let’s take a look at the problem statement for a new type of MRI scanner, called the Magnet Resonance Elastography (MRE), as given by Jake Mendel:

“75% of the 1 million+ annual biopsies for prostate cancer produce inconclusive results. This results in a $4B loss to the healthcare system and ~8% of patients being hospitalised for complications.”

This statement is effective because it covers the 3 aspects we spoke about that quantifies the problem. Adding such data adds impact and authenticity.

What is the problem: 75% of the 1 million+ annual biopsies for prostate cancer produce inconclusive results.

Who has this problem: Patients suffering from prostate cancer and going for biopsies.

Why is this a problem: $4B loss to the healthcare system and ~8% of patients get hospitalised for complications.

Some More Food for Thought

The work doesn’t end after you’ve jotted down a problem statement, in fact, it only starts there. By diving deeper into this topic, you can start to validate your statement and understand if it is a big enough problem.

Here are some more questions to spend time on:

How urgent is the problem?
How many people face this problem?
Will a customer pay for my solution? How much?
How are my competitors solving this problem?
How am I solving the problem differently?
What is my customer’s best alternative if my startup did not exist?
Can I build a sustainable business out of it?

Building a Good Problem Statement

Writing a good problem statement is not rocket science. It’s all about communicating well and allowing the listener or reader to relate to what you are doing. Here are a few things you should keep in mind as you build your problem statement.

Less is more: While defining the problem statement, we already hinted at succinctness. There is no time or scope to beat around the bush. Clearly state the problem you are going after and let that be the basis to talk more about your startup.
Define the extent with numbers: By adding data (like $4B loss to the healthcare system), the listener is able to understand and visualise the extent of the problem you are talking about. It gives a great idea of how big a problem you are going after.
Show inadequacies of current solutions: Your problem statement should also clearly prove that current solutions are proving to be inadequate, and the problem still persists. For example, by saying “75% of the 1 million+ annual biopsies for prostate cancer produce inconclusive results,” it is evident that the products in the market are not enough to solve the problem.
Make it engaging: Nobody will be convinced with a dull statement. Make sure you work on multiple versions of your problem and then narrow down to the one that creates an impact on the audience and gets them fired up.

If your problem statement does not prove that there is a problem, then that’s a problem for you!

The Next Step: Solution Statement

As chronology has it, after the problem statement, you will jump to the solution that you are offering. However, by this time, it is assumed that you are confident of the associated market opportunity and customer persona.

Just like its counterpart, the solution statement is a well-worded statement that encompasses all your offerings to tackle the problem at hand. It also needs to be short and should pack a punch.

Don’t fall prey to the assumption that if your problem statement makes sense, the solution will implicitly work too. You still have to work hard and ensure that your listeners understand what all you bring to the table. You haven’t yet got their interest; you are still building it.

Tying it Together

Remember, your audience needs to be able to link your solution statement to your problem statement- they have to be based on the same premise and should all tie together. What this essentially means is that your solution statement needs to be worded and presented in a similar fashion for them to make sense together.

If you have addressed a customer pain point as being inconclusive biopsy results leading to complications, then your solution statement should straightaway focus on the improved validity of results you can guarantee and not stray off to an explanation of the technology you are using.

Again, use some figures, tell them how reliable you are, what amount of medical expenses can be saved, etc. to create a better impact.

A Good Solution Statement

A good solution statement will embody many features similar to that of a strong problem solution. And above everything, less is again more. A frequently discussed example is that of Airbnb that puts across its solution statement is a simple format; however, it can include some data to back it.

“A web platform where users can rent out their space to host travellers to:

Save money while travelling.
Make money while hosting.
Share culture through local connections.”

The critical part here is to understand what a problem or solution statement does not need to include. Don’t get swayed by fancy terms or technology or the nitty-gritty of what you are offering. These statements are meant to garner immediate attention and provide clarity.

These statements can also flash on your websites, applications or other places you deem fit, so customers know what you do instantly.