Every successful business starts by solving a real problem. The better you can define that problem, the more powerful your solution becomes. That’s why writing a clear, concise problem statement is such an important part of your business plan.
But here’s where many business owners miss the mark: they jump straight to the solution without fully explaining why the problem matters. Without a clear problem statement, your audience—whether that’s investors, your team, or customers—won’t understand the “why” behind your business.
In this guide, we’ll walk you through what a problem statement is, why it’s essential, and how to write one. You’ll also find helpful problem statement examples to see what it looks like in action.
What Is a Problem Statement?
At its core, a problem statement defines an issue and gives context for why it matters. It helps others understand who’s impacted, what’s at stake, and what could improve if the problem is solved.
A strong problem statement does more than describe the issue. It tells a story—one your audience can relate to. That story makes it easier for people to connect with your brand and support your solution.
Why Problem Statements Matter
Your problem statement isn’t just a business planning tool. It helps guide your decisions, keep your team focused, and set the stage for long-term success.
Here’s why it’s worth your time:
- Clarifies the Problem – A solid problem statement helps you explain the issue in a detailed but clear way.
- Defines the Goal – Your problem statement doesn’t just outline the problem; it also lays out what the ideal outcome would look like.
- Keeps Your Team Aligned – It acts as a reference point to stay focused on solving the right problem.
- Builds a Case for Your Solution – Importantly, a clear problem statement shows your audience why your idea matters.
Think of your problem statement as the foundation of your business plan. It sets the tone for everything that follows.
Real-World Problem Statement Examples
Let’s look at how companies you know tackled their own problem statements.
Example 1: Netflix
Before streaming, people had to drive to video rental stores—only to pay late fees if they forgot to return the movie. Netflix solved this with DVD delivery and, later, streaming.
Here’s a simple version of their problem statement:
- Problem: Renting movies requires fighting traffic to get to a brick-and-mortar store, browsing shelves, and paying late fees.
- Solution: Netflix offers on-demand access to movies—first by mail, then by streaming—so people can watch from home, anytime.
This problem statement example is short but effective. It clearly explains the problem and tees up the value of Netflix’s solution.
Example 2: Facebook
When Mark Zuckerberg was a student, he noticed Harvard’s internal student directory lacked interactivity. Students couldn’t connect, comment, or engage. This led him to create Facebook.
Facebook’s original problem statement could be simply put as:
- Problem: Students have limited ways to connect and build relationships online with people who share similar interests.
- Solution: Facebook lets users interact with one another through likes, comments, and shared communities.
Again, the focus is on the problem first, which sets the stage for the solution.
Key Elements of a Strong Problem Statement
Key elements of a solid problem statement include:
- The Ideal Situation – Start by describing what the world would look like without the problem. What’s the goal? What would success look like?
- 2. The Reality – Now, explain the actual situation. What’s happening, who’s affected, and why is it an issue?
- The Consequences – Describe how the problem impacts people or your business. Are you losing time, money, or opportunities?
- The Proposal – Offer potential ways the issue could be solved, but don’t go too deep into the solution just yet. The goal here is to open the door for more in-depth research or planning.
How to Write a Problem Statement for Your Business
Writing a problem statement is important, but it doesn’t have to be difficult.
Here are some simple tips to help you get started:
- Describe the Ideal Scenario – Start with what success would look like. Explain how things should work if the problem didn’t exist.
- Focus on the Most Important Problem – If your business solves multiple issues, narrow in on the biggest one. It’ll be more memorable and more impactful.
- Consider Your Audience – Think about what your audience needs and how they experience the problem. The more relatable your story is, the stronger your statement will be.
- Use Facts & Data – A great problem statement is backed by real evidence. Use stats, trends, or insights (internal or external) to support your point but keep it simple. No need to overwhelm readers with numbers.
- Highlight the Benefits of Solving the Problem – Once you’ve explained the issue, outline what will improve. Will your solution save money? Increase customer satisfaction? Boost efficiency? Make those benefits clear.
Need Help Solving Business Problems?
A well-written problem statement helps you take the first step toward building a smarter, stronger business. If you’re ready to grow but need guidance—especially with your marketing—our team at Scorpion is here to help.
We’ve supported thousands of business owners across industries with solutions that make sense for their goals. Whether you’re just getting started or need to refresh your strategy, we’re ready to partner with you.
Let’s get started today! Contact us for a consultation.
