In a recent conversation with a long-time business owner applying for a grant, she expressed frustration over what she saw as unrealistic demands in the application process. One question stood out to her: “What problem is your business solving?”
She didn’t see this as applicable to her business, explaining, “I’m not solving any world problems; I’m just selling products to make money.” This conversation got me thinking: what does it really mean for a business to solve a problem, and how can startup founders and entrepreneurs effectively identify and communicate the issues they are addressing?
Every Business Solves a Problem
At its core, every business solves a problem, whether the owner realizes it or not. Even a company primarily focused on making money addresses a need or demand in the market. The key lies in understanding how your business is solving a problem and how to present this in a way that resonates with stakeholders, customers, or even grant committees.
Breaking Down the Problem-Solving Approach
The United Nations has highlighted several key global challenges through its Sustainable Development Goals (SDGs). For the purpose of our discussion, let’s focus on three critical areas:
Poverty
Zero Hunger
Affordable Healthcare and Clean Energy
These issues are not just abstract global problems—they provide a framework to understand how your business fits into solving local or personal challenges. Here’s how you can start identifying the problem your business is addressing:
Start with Your Motives
The first step in understanding the problem your business is solving begins with your personal motivation. Ask yourself, why am I in this business?
If the goal is to make a profit, you’re addressing a personal financial need. By accumulating resources and potentially creating jobs, you’re contributing to the reduction of poverty. Every dollar you earn or reinvest helps sustain not just your own livelihood, but can also help support employees, suppliers, and communities.
If you’re driven by passion for the product or service, consider how that passion addresses a specific market need. For example, are you offering a more sustainable option in an industry that lacks environmentally conscious products? Are you providing a unique solution that improves lives in some way?
Understand Your Customers’ Needs
The next step is to look outward: Why do people buy from you? What is the specific problem you are solving for your customers?
If you’re in the food business, whether through manufacturing or distribution, you are solving the problem of hunger. By providing access to quality food products, you are contributing to global efforts to achieve zero hunger.
In the healthcare space, whether you are selling health-related products or offering medical services, you are solving the problem of access to healthcare, a major concern in many parts of the world, including Nigeria.
If your business is related to renewable energy, you’re addressing the urgent need for clean, affordable energy solutions, one of the most pressing challenges globally.
Align Your Business with Global Goals
Another way to identify the problem your business is solving is by aligning your operations with broader social issues. The UN’s 17 SDGs provide a solid framework for thinking about how your business can contribute to solving global problems on a local scale. Whether it’s ensuring access to clean energy, reducing inequality, or promoting responsible consumption, you can find where your business fits into this larger narrative.
Communicating the Problem You’re Solving
Once you’ve identified the problem your business is solving, the next step is effectively communicating it. Whether you’re applying for a grant, pitching to investors, or simply marketing your products, here’s how to present the problem-solving aspect of your business:
Be Specific: Clearly articulate the problem you are addressing. Use real-world examples or data to highlight the urgency or scale of the issue.
Show Impact: Demonstrate how your business makes a tangible difference in solving the problem. Use stories, testimonials, or measurable outcomes to showcase your impact.
Connect Emotionally: People resonate with human stories. If your business helps feed families or provides access to clean energy, make sure to share that in a compelling, relatable way.
In a Nutshell
Every business, whether big or small, plays a part in solving a problem. From reducing poverty by generating income to addressing hunger through food distribution, or even promoting clean energy alternatives, businesses are at the heart of driving solutions for many of the world’s most pressing issues. By understanding your motivations, knowing what your customers need, and aligning with global frameworks like the UN’s SDGs, you can not only identify the problem your business solves but also present it in a way that is meaningful and impactful.
Take the time to reflect on why you started your business, understand the problem you’re solving for your customers, and learn how to communicate that value. It’s not just about selling products—it’s about making a real difference in the world.
