You may have heard of the difference between an invention and an innovation; an innovation’s sole purpose is to be a solution to particular problems, while an invention is a solution that doesn’t necessarily solve a problem.
The distinction between these two is crucial. Businesses that focus on invention might develop products loaded with features, but if those features don’t solve a tangible problem, the startup is likely to fail. In fact, a report from CB Insights shows that 35% of startups fail due to a lack of market need, which is often the result of a problem-solution mismatch.
This article aims to guide you through the process of aligning your business solutions with the problems you aim to solve, ensuring that your startup addresses real needs effectively.
The first and most crucial step in aligning your business solutions with problems is to clearly define the problems you aim to solve. Without well-defined problems, solutions would not only be very difficult to identify but would be ineffective as well. Start by identifying the pain points of your target market: What does their current experience look like and what are the challenges they face throughout it? How big is the impact of these problems in their daily lives? A good problem statement is specific, actionable, and rooted in real-world needs.
Consider Aybee, a member of the Frankfurt School Entrepreneurship Centre and the winner of the latest Demo Day, bringing home the prize of 30,000 EUR. Aybee provides an A/B testing platform that allows companies to test pre-launch product ideas through real customer behaviour. Before developing their solution, Aybee founder Florian Knieß and his team identified two key problems from his own experience working in the industry:
Once you have clearly defined the problems, the next step is to develop solutions that directly address them. Each solution should be directly linked with a previously identified problem, so it helps to map these out in a structured way. For instance, let’s look at how Aybee developed solutions for the problems they identified:
Solution: Aybee allows companies to conduct A/B testing with product mock-ups even before production. These mock-ups are simulated on platforms like Amazon storefronts, enabling companies to gauge consumer interest from the start and avoid costly production mistakes.
Solution: Aybee’s platform tests these product mock-ups with real consumer groups based on their client’s target markets, providing data-driven insights that simulate real-life demand. This helps companies make informed decisions based on actual consumer behaviour.
By coming up with a solution for each specific problem, Aybee ensures that its platform is not just a collection of features but a tool that directly addresses the needs of its target market.
In the fast-paced world of startups, it’s easy to get caught up in creating features for the sake of innovation. However, if these features don’t address real problems, they add little value and can even take you away from the main goal of your business. When creating your business plan, it’s essential to ensure that every solution you develop is directly tied to a problem you’ve identified. This focus on problem-solving not only increases your chances of success but also helps you build a product that truly resonates with your target market.
If you’re struggling to find the right solutions for the problems you want to solve, book an Idea Talk with the Frankfurt School Entrepreneurship Centre so our team can provide you with expert guidance and mentorship!
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