The number one reason businesses fail is due to them not solving a market problem. CB Insights conducted research based on 101 small businesses and found that 42% of small businesses fail due to no market need.
Consumers of different goods and services will always have problems, which will always make them reach towards solutions. Emerging challenges and technologies will always push consumers (and entrepreneurs) to look out for better, smarter, and faster ways of accomplishing tasks and solving problems. The biggest hurdle for most entrepreneurs is finding the market problems and matching them with goods or services that solve these problems. Fortunately, we have listed a couple of insights here to get you started.
1. Define the Problem
Most entrepreneurs get it wrong by jumping into creating a solution, having not defined the problem. It is advisable to examine what caused the problem to avoid creating a strategy that does not solve it. This ensures that you treat the real problem as opposed to treating the symptoms. The best way to define a problem is by conducting market research and interviewing customers. This equips you with absolute knowledge of what problem the customers are facing, and therefore you develop a product or service that solves that particular problem.
One need only look as far as Eric Ries The Lean Startup to witness this first-hand. They continued to try to create a social messenger that could import from the more popular messengers only to discover their users didn’t care to do that, they wanted to add people they met through the existing product. If you’re not solving your consumer’s problem, you’re going to be making problems for yourself.
2. The Product Should be A Must Have and Not A Nice To Have
Every day, there is a paradox of choices that overwhelm customers. We are in the age of multi-tasking, which is shortening attention spans. This means that only a few products out of many get noticed. Moreover, those which get noticed are must-have products and not a solution for a nice to have. A must-have product should be able to offer fast and quick results. In the current world, it has become impossible to satisfy the customers’ needs if the product or services does not offer faster results.
3. Use Design Thinking Approach to Identify Multiple Solutions
It is advisable to use this technique if you want to create products or services that solve particularly big community problems. The technique involves many people who give different views, and the end result is inventions of multiple solutions and perspectives.
If people are looking at sites like billboards going 60mph, then providing one avenue isn’t going to be the same solution for everyone. Provide multiple approaches.
The method is not used only where there are complex problems as some people think. You can use it in your small business to find the business’s common needs and offer solutions for them.
The art of solving a problem is important as it aligns the business with its customers’ needs. Therefore, you need to master this art to make your business successful by following the above tips.