The most important question an entrepreneur has to answer
Sherry Coutu (in her article in the 'what I wish I'd known' series) explains that “solving someone’s problem” is at the heart of a business.
On the face of it, it appears an obvious consideration, however, a large proportion of the companies we see can not satisfactory articulate the problem they are solving. I put it down to a reluctance of some early stage entrepreneurs to really get to know their potential customers early on in a business’s life. This hesitancy to speak to a real customer can lead to outrageous assumptions on the depth of the so called ‘problem’ that they are solving.
Answering the question ‘what problem are you solving’ is fundamental to getting to the heart of the value of your business…if that is not enough reason to reconsider this concept then consider that every sensible investor I know asks a version of this question at some point in their first meeting with a company that is looking for investment. In short it is essential that you and everyone in your business can give a clear, articulate answer.
