Problem Solver

The cliché, “scratch your own itch,” has become the mantra of many business gurus. The premise is correct, but not without risks.

A problem can be of two types: existing products lacking the performance you need or a lack of products to do what you want to do.

In the first case, you are solving a quality issue. Products are there. However, for better performance, you may pay a higher price. In the second case, either the products just do not exist, or access is difficult.

In both cases, you know the problem, the current solution, and what performance factors matter. You can avoid much of the expensive research in building the offer.

If you start a business around performance improvement, the incumbents will strive to drive you out of business. If they have a significant resource advantage, you could be in trouble.

Dropbox introduced superior document storage and sharing solutions to an unserved, new audience. It avoided competing directly with the incumbents. That is smart.

Before starting a business around a problem, clearly understand whether your solution improves or is a new product. Grasp the competitive landscape and then design the best marketing strategy.