Why the Problem Comes First
Every good business solves a real problem. If you cannot describe the problem clearly, customers, partners, and lenders will struggle to see why your business should exist. The problem also guides your solution, your marketing, and your prices.
What to Include
- Who has the problem — be specific about the customer.
- What makes it hard — slow, costly, annoying, risky, or hard to find.
- Why it matters now — what it costs them in time, money, or stress.
A Simple Formula
Examples (Illustrative)
| Weak | Strong |
|---|---|
| People need breakfast. | Office workers have less than ten minutes for breakfast, and nearby options are slow or not fresh, so many skip it or eat poorly. |
| Small shops need help with accounts. | Small shop owners cannot find bookkeeping help they can afford, so their records fall behind and tax deadlines become stressful. |
| Our app is great for farmers. | Small farmers sell to the first buyer who comes, because they cannot easily compare prices in nearby markets. |
Then Write Your Solution
Once the problem is clear, describe your solution in one or two sentences: how your product or service fixes the problem in a simple way. Then say who your main customer is. These three lines — problem, solution, customer — are the heart of your Business Overview.
Common Mistakes
- Describing your product instead of the problem. "There is no app for X" is not a customer problem.
- Being too broad. "Everyone wants to save time" says nothing specific.
- Using business words. Use the plain words your customers would use.
Where It Fits in Your Business Plan
The problem statement opens the Business Overview section. It shapes your unique value proposition and your market research.
Frequently Asked Questions
What is a problem statement in a business plan?
One or two sentences that describe who has a problem, what makes it hard or costly, and why it matters to them now.
How long should a business problem statement be?
One or two clear sentences is enough.
Should the problem statement mention my product?
No. Describe the customer's problem first. Your product belongs in the solution that comes next.
How do I know the problem is real?
Talk to people who might have it. If they describe it in their own words and already spend time or money trying to fix it, it is real.
Build your plan with Founderplat
Founderplat walks you through all eight sections, one small step at a time, with tips and examples for every part.
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