Define the problem you are solving

Every business needs to be solving a distinct problem that the customer has. This can consists in either solving an old problem in a new way (e.g. Uber) or solving an emerging problem (e.g. password management apps).
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You need to understand this problem intimately in order to communicate your solution effectively. Knowing the problem you are solving gives you a competitive edge as you are able to make your customers understand exactly what they will be getting from you and why it will help them.

To define what problem you are solving, ask yourself the following questions:

• What need or want am I fulfilling?
• How is this need and/or want currently being met?
• What problems does my customer currently have?
• What are the risks of switching?
• How big is the burden of switching?

BGH example
BGH supports SMMEs to grow from survivalist/subsistence businesses into sustainable enterprises. The problem we are solving is this:

In South Africa there are a lot of SMMEs that are established out of the necessity to feed one's family. These tend to be generic (look alike) and sell the same products. Majority of these business owners do not have an idea on what their cash-flow looks like and how profitability varies across products.

This means that they stand the risk of increasing sales on their less profitable products which will hurt their margins and diminish their growth potential. [For more information, send us a message or email [email protected]]