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Finding the Right Problem to Solve for Your Startup

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Chapter 1: The Importance of Solving the Right Problem

When starting a business, the fundamental goal is to address problems. However, not every issue is suitable for a startup to tackle.

I vividly recall the moment I conceived my first startup idea. While attending a baseball game with a friend, I noticed a plethora of vacant seats and pondered, "Why did I pay so much for my tickets when there are so many empty seats? This is a significant issue! What if we could find a way to sell those tickets for a lower price?"

This thought led to the creation of a ticket auction website. For the next two years, I dedicated my efforts to persuading event organizers to allow me to auction their tickets at discounted rates. My plan was simple: they would provide me with their tickets, I would auction them on the event day, and any unsold tickets would be purchased, ensuring those empty seats were filled. It seemed like a win-win scenario—consumers would benefit from lower ticket prices, and event organizers would see increased attendance.

Sounds like a brilliant plan, right? Unfortunately, it flopped. My first startup was a complete failure, and at the time, I couldn't grasp the reasons behind it.

However, looking back, the cause is clear. I made a common mistake that many novice entrepreneurs make: I focused on solving my problem rather than addressing my customers' needs. This misstep can lead to disaster for any startup.

Some Problems Are Actually Advantages

To illustrate why your startup may struggle to resolve your own issues, consider a problem that most can relate to: inadequate parking on college campuses.

College parking is notoriously inconvenient and costly. There’s never enough space, and it’s often far from where you need to go. Perhaps most frustrating of all are the frequent parking tickets issued by enforcement officers.

As someone who teaches entrepreneurship at a university, I challenge my students each semester to come up with solutions to this all-too-familiar dilemma. I divide them into small teams, giving them a few weeks to brainstorm and test potential solutions. They then present their ideas to the class.

Over the years, I've heard a plethora of pitches—ranging from the obvious, like constructing more parking lots, to more creative ideas like offering free scooter rentals from parking areas to the main campus. My personal favorite was a proposal for a free valet parking service—count me in!

Despite the numerous attempts, no group has ever pinpointed the ultimate solution. They always aim to "fix" something, but the real answer is simply: do nothing. Surprisingly, the inconveniences of college parking aren’t actually detrimental to the students or visitors.

While students, faculty, and guests may dislike the parking situation, they are not the ones who would pay for the solution. To address the parking issue on campus, one would need to sell the solution to the university itself. Yet, from the school’s perspective, the parking woes are not a problem—they are an asset.

Viewing the Issue from the School's Perspective

Consider the implications of convenient parking from the viewpoint of a university.

Making campus access easier with ample parking could lead to liability concerns. It might attract more unaffiliated individuals, increasing traffic and potential crime. Such changes could also heighten the risk of accidents, injuries, and fatalities. Would any school want to invite those challenges? Of course not!

Moreover, difficult parking conditions discourage individuals from leaving campus, which encourages them to stay and spend money at on-campus facilities. It’s more beneficial for schools to have patrons dine at their eateries rather than off-campus.

Additionally, poor parking leads to illegal parking. Many students resort to parking in unauthorized areas to reach their classes on time—and I confess, I’ve done it too! Those improperly parked vehicles receive tickets, which generate significant revenue for colleges.

Do you see the conundrum in attempting to "fix" college parking? Why would a university want to remedy something that creates both safety and financial benefits?

The only time fixing an issue is warranted is when the drawbacks outweigh the advantages. In the case of campus parking, that’s unlikely. When have you ever heard someone say they chose not to attend a particular university due to its parking situation? Or that they switched their school spirit because of poor parking? Such statements are rare because parking isn’t a deciding factor for students, staff, or fans.

Understanding Your Customer's Perspective

When I attempted to launch my ticket auction venture, I made the same error as those trying to amend college parking. From my perspective as a spectator, empty seats were a problem because I had invested significantly in my tickets and felt shortchanged by the numerous unsold seats. Why couldn’t I acquire those wasted tickets at a lower cost?

However, I neglected to consider the viewpoint of the event organizers (in this case, the baseball team). They weren’t concerned about unsold tickets; their priority was maximizing revenue. After two years of trying to persuade them to let me auction their unused tickets, I finally realized that they preferred selling fewer tickets if it meant keeping the overall market value higher. While I resented the high prices, that was my issue, not theirs.

Situations where something perceived as a problem is actually beneficial to potential customers can be difficult for entrepreneurs to grasp. To recognize these scenarios, one must learn to view the world through the customers' eyes. Continuously ask yourself:

"Does the person or organization that would pay for my solution share my perspective on this problem?"

If the answer is yes, you may have identified a genuine problem worth addressing. Congratulations! Keep advancing on your entrepreneurial journey.

However, if the answer is no—if the entity that would need to purchase your solution doesn’t share your feelings about the problem—then you're likely concentrating on your issue instead of your customer's.

Avoid creating a startup focused on your problem because it may not be a real issue from the perspective of those affected. Even if it frustrates you, someone or something is likely benefiting from your dilemma, and that entity may not want your solution because it forms a core part of their business model.

Want more insights on startups and entrepreneurship? Enroll in my (FREE) mini-course today!

Chapter 2: Learning from Others' Experiences

In this video, "How to Identify the Right Problem to Solve for Your Startup," discover the key factors in recognizing the appropriate issues to tackle for your entrepreneurial venture.

Chapter 3: Finding Your Unique Approach

Unlock the secrets of startup success in the video "Unlocking Startup Success: Find the Perfect Problem to Solve." This resource will guide you in identifying the right challenges to address.

This version maintains the original meaning and structure while ensuring the language is unique. The added YouTube video sections provide relevant content to enhance understanding.

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