Problem Statement Templates and Examples for Businesses

A problem statement serves as a clear and concise declaration of the core issue that your startup aims to solve.

It outlines the existing gap between the current state and the desired state, answering the questions:

• What's wrong?
• Why does it matter?
• How will my startup fix it?

Being able to articulate a compelling problem statement is critical for both internal clarity and external communication. It guides your internal product development and strategy, and externally, it serves as your north star for investor pitches, grant applications and customer acquisition efforts.

Writing problem statements can be tricky. To help break through the writer's block, we'll share a few problem statement examples.

But First, What Is A Problem Statement?

A problem statement (sometimes called a "framing statement") is 100-150 words outlining the problem to be solved and why it is important to solve.

It helps stakeholders immediately grasp the significance of your mission and the opportunity it represents. To be effective, the problem statement must be specific enough to illustrate the impact of the issue.

It should concisely articulate pain points or gaps, which your startup aims to address. This establishes a direct connection between the problem and the impact it has on your target audience.

That then sets up Part 2: The solution statement.

Solution Statements

Solution statements encapsulate how your startup specifically addresses the identified problem and why it's different from the options currently available. A well-crafted solution statement not only describes the practical application of your solution but also emphasizes its benefits and impact.

Problem Statement Examples

Seems simple enough, right? Let's review some problem statements and solution statements for some well-known companies.

Note that these aren't problem statements officially used by these companies, but rather our attempts at distilling them.

Netflix

Problem Statement:

Traditional cable television and rental services offer limited flexibility, leading to a subpar consumer experience. Users are tied to predetermined schedules, limited choices and cumbersome rental procedures. The industry is ripe for disruption, as evidenced by declining cable subscriptions and the increasing adoption of internet-enabled devices for content consumption.

Solution Statement:

Netflix revolutionizes the way people consume entertainment by offering an on-demand streaming service with an extensive library of films, TV shows and original content. Accessible across multiple devices, Netflix provides a personalized, user-friendly experience free from commercials. Leveraging data analytics for content recommendations, we seek to create an engaging platform that not only satisfies current entertainment needs but also anticipates and adapts to evolving consumer preferences.

Uber

Problem Statement:

Traditional taxi services suffer from inefficiencies, including limited availability, inconsistent pricing and lack of transparency. These problems are exacerbated during peak hours and in areas with low taxi density. The absence of a convenient, reliable and cost-effective mode of on-demand transportation represents a significant gap in the market.

Solution Statement:

Uber's ride-sharing platform connects drivers and riders in real-time via a mobile application. The platform will offer transparent pricing, instant ride availability and user reviews to ensure quality. By utilizing GPS and data analytics, Uber aims to optimize route planning and reduce waiting times. This solution promises a seamless, reliable and efficient transportation experience for both drivers and riders.

Instacart

Problem Statement:

Traditional grocery shopping is time-consuming and often inconvenient, especially for busy professionals, elderly individuals or those with limited mobility. The existing solutions like scheduled delivery services lack real-time availability and offer a narrow range of products. The inconvenience amplifies during peak times and weather-related events, revealing a clear need for a more efficient, flexible solution.

Solution Statement:

Instacart transforms the grocery shopping experience by offering an on-demand delivery service through a user-friendly mobile app. Partnering with local grocery stores, Instacart will provide a wide range of products at competitive prices. Users can shop virtually and have their orders delivered to their doorsteps within a specified time window.

Tesla

Problem Statement:

The automotive industry has long relied on fossil fuels, contributing significantly to environmental degradation and climate change. Traditional cars emit greenhouse gasses and the existing electric vehicles (EVs) on the market suffer from limited range, lengthy charging times and lack of performance. These barriers have hindered the mass adoption of sustainable transportation solutions.

Solution Statement:

Tesla accelerates the world's transition to sustainable energy by producing electric vehicles that offer both high performance and long-range capabilities. Through cutting-edge battery technology, efficient powertrains and an expanding network of fast-charging stations, Tesla seeks to remove the existing barriers to EV adoption. Additionally, Tesla's vehicles come equipped with advanced safety features and autonomous driving capabilities, providing not just a green alternative but also a more intelligent, safer mode of transportation.

Need Help Defining Your Problem Statement? Meet Archie, Our AI-Driven Product Architect

Everyone could use a little help getting their framing statements fine-tuned. Say hello to Archie, our AI-driven product architect.

The way it works is simple: Just give Archie a quick description of your idea. It'll immediately get to work, using its foundation of product lifecycle-tuned large language models to provide detailed recommendations to help you get your idea off the ground.

It starts with detailed architectural and technical recommendations, but, we should emphasize, that's just the start. Archie goes beyond the tactical and technical to dive into business strategy concepts, giving you detailed information on:

• Problem statements
• Monetization mechanics
• The novelty of your idea
• Your potential for bootstrapping
• Regulatory or compliance issues to be aware of

Archie's suggestions can spark inspiration, and it can help you see around corners for compliance, security and other concerns you may not have expertise in.

Archie is free to get started. Give it a try here.

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