What's your problem? Why founders need to focus on understanding issues before building solutions

As a founder, it's easy to get caught up in the excitement of a new idea. You've envisioned a solution that could change the world - or at least make a significant impact in your industry. But before you dive headfirst into development, take a step back. The most successful startups don't start with a solution; they start with a deep understanding of the problem they're trying to solve.

The Pitfall of Premature Solutions

Many startups fail not because their product is badly built, but because it doesn't solve a real, pressing problem for enough people. By focusing on the solution too early, you risk creating a product that nobody wants or needs. This is why understanding the problem thoroughly is crucial.

The Power of Research

To truly understand a problem, you need to do more than just brainstorm in a room with your co-founders. You need to get out there and talk to people - lots of people. In fact, we recommend speaking with at least 20 potential customers before you even think about building anything.

Why 20? This number gives you enough data to start seeing patterns and commonalities. It helps you validate whether the problem you've identified is just yours or if it's widely shared. It's also enough conversations to challenge your assumptions and uncover aspects of the problem you might not have considered.

How to Conduct Effective Research

1. Start with open-ended questions: Ask about pain points, current solutions, and ideal outcomes. Let your interviewees guide the conversation.
2. Listen more than you talk: The goal is to gather information, not to pitch your ideas. Practice active listening and encourage interviewees to elaborate on their responses.
3. Present your understanding: After gathering initial insights, present the problem as you understand it. This can validate your assumptions or reveal misunderstandings.
4. Dig deeper: Ask follow-up questions. How much would they pay for a solution? What features are must-haves vs. nice-to-haves?
5. Record your interviews: Use a recording app or software to capture the full conversation. This allows you to focus on the interaction during the interview and provides a verbatim record for later analysis.
6. Analyse systematically: Use tools like Dovetail to organise and analyse your interview data. This helps identify patterns, themes, and insights across multiple interviews.
7. Observe and analyse: Look for patterns in the responses. Are certain pain points mentioned more frequently? Do different user segments have different needs?
8. Document your findings: Compile your research into a presentable format. This can serve as a valuable proof point when pitching to potential investors, demonstrating the depth of your problem understanding and market research.

From Problem to Solution

Once you've thoroughly researched and understood the problem, you're in a much stronger position to ideate solutions. Your research will guide you towards features that truly matter to your potential customers. It might even reveal that the real problem - and the real opportunity - is different from what you initially thought.

Case Study: Airbnb

Airbnb's story shows the power of understanding the problem before building a solution. Founders Brian Chesky and Joe Gebbia didn't set out to revolutionise travel accommodation. They simply needed to pay their rent in expensive San Francisco. When a design conference filled local hotels, they saw an opportunity to rent air mattresses in their living room, inadvertently stumbling upon a larger problem.

Through conversations with early users, they uncovered a significant disconnect: travellers sought unique, affordable experiences, while property owners wanted to monetise unused space. Their research revealed that many, especially younger travellers, valued experiences over luxury, and there was an untapped market of people willing to open their homes to strangers. However, trust was a major concern for both hosts and guests.

This deep understanding of the problem allowed Airbnb to create a platform that directly addressed these issues. They developed a robust review system to build trust, implemented secure payment processes, and created tools for hosts to showcase their spaces effectively. By focusing on the problem first, Airbnb was able to refine their business model, develop targeted features, and create a unique value proposition that differentiated them from traditional accommodation options. The result was a platform that solved not just the founders' initial problem, but a global need, growing into a multi-billion dollar company operating in over 220 countries and regions.

The Road Ahead

Understanding the problem is just the first step, but it's a crucial one. It sets the foundation for everything that follows - from product development to marketing strategy. By investing time in this phase, you dramatically increase your chances of building something people actually want and need.

So before you start coding or designing, get out there and talk to people. Understand their problems, their frustrations, their desires. Only then can you truly begin to build a solution that matters.

Remember, great startups don't just build products; they solve real problems. Make sure you understand the problem first, and you'll be well on your way to startup success.

By following these steps, you'll not only gain a deeper understanding of the problem but also create a solid foundation of research that can support your startup's development and funding efforts. Remember, investors are often more impressed by thorough problem research than by premature solutions.

Image Credit: Midjourney