When the Problem/Solution Framework Doesn't Fit Your Business

Every business planning guide starts the same way: identify the problem you're solving. In fact, this is the advice that I always give and even gave again in last week’s newsletter.

And, it makes sense. If you're building software that automates tedious tasks, the problem is clear. If you're offering a service that fills an obvious gap in the market, you know exactly what problem you're tackling.

But what if you're opening a restaurant? Or launching a clothing line? Or starting a toy company?

You know what makes your business different. You have a clear vision for what you want to create. But you freeze when you sit down to write your business plan and see that first question: "What problem are you solving?"

There's no shortage of restaurants in your city. Kids already have plenty of toys. Clothing stores exist.

So what problem are you actually solving?

The Problem with "Problem"

The truth is, the word "problem" feels wrong for certain types of businesses. It implies something is broken that needs fixing. But it doesn’t feel like your business is fixing something broken. Instead, it’s about creating something better, different, or more aligned with what a specific group of people actually wants.

That doesn't mean your business isn't viable. It just means the traditional problem/solution framework might need some reframing.

When "Problem" is Broader Than You Think

Despite “problem” not feeling right for your business, most businesses actually can fit into the problem/solution framework. You just need to think about "problem" more broadly.

A problem doesn't have to be something catastrophically broken. It can be a gap, an inconvenience, or simply the absence of something people want.

Take a restaurant, for example. You might not think of yourself as solving a problem, but consider this: Is there truly no authentic, high-end Mexican cuisine in your city? If people who want that experience currently have to settle for something less, or drive to another city, or cook at home, that's a problem worth solving.

Your clothing brand might focus on a specific style that's hard to find at an accessible price point. The "problem" is that people who want that style currently can't get it without paying luxury prices or compromising on quality. You're filling that gap.

A toy company might create products that blend education with genuine fun. The "problem" is that educational toys tend to bore kids, while fun toys don't teach them anything valuable. Parents currently have to choose one or the other.

In each case, the problem isn't obvious at first glance. But when you dig deeper, you realize customers are settling for something that doesn't fully satisfy them. That's a problem.

To Find the “Problem,” Reframe the Question

Instead of asking, "What problem am I solving?" try asking:

• What are customers currently settling for?
• What gap exists between what's available and what people actually want?
• What inconvenience or compromise do customers currently accept?
• What would make someone's life measurably better, even if "better" just means more enjoyable or more satisfying?

If you can answer any of these questions, you're solving a problem, even if it doesn't feel like one at first.

When Differentiation is the Better Lens

That said, some businesses genuinely don't fit the problem/solution framework. That's okay.

Maybe you're opening a bakery in a neighborhood that already has several good bakeries. You're not filling a gap or solving a problem in the traditional sense. You're offering a different style, a different approach, a different experience.

Or you're starting a consulting firm in a market with plenty of consultants. Your value isn't that you solve a problem others can't. It's that you bring a different methodology, background, or perspective.

For these businesses, trying to force a problem statement feels artificial. What you're really doing is differentiation.

The Differentiation Framework

If problem/solution doesn't fit, focus on these questions instead:

• What makes you different from existing alternatives?
• Why would someone choose you over the competition?
• What unique perspective, style, or approach do you bring?
• What specific type of customer will value your difference?

A bakery might differentiate on style and focus on European-style pastries while others focus on American classics. Or they might differentiate on ingredients and use only organic, locally-sourced products. Or the could differentiate on experience and create a cozy, community-focused space while competitors focus on grab-and-go convenience.

A consulting firm might differentiate on methodology and bring a data-driven approach to an industry that typically relies on intuition. Or they could differentiate on background and show how they’ve worked in the industry they’re consulting for, giving insights others lack.

The key is being specific about what makes you different and why that difference matters to a particular group of customers.

How to Know Which Framework Fits

Here's a simple test:

Use problem/solution if:

• Customers currently struggle with something specific and your business addresses it
• Existing options are inadequate in measurable ways: too expensive, too limited, too complicated
• You can clearly articulate: "People currently do X, but they wish they could do Y instead"

Use differentiation if:

• Multiple adequate alternatives exist, but none match your vision or approach
• You're competing on taste, style, or creative execution
• The "problem" you're solving feels forced when you try to articulate it
• Your pitch naturally focuses on "what makes us different" rather than "what problem we solve"

If you're still not sure, ask yourself this: When you talk to potential customers about your business, what gets them excited? If it's "finally, someone who solves [specific issue]," that's problem/solution. If it's "I love your approach to this," that's differentiation.

Both Lead to the Same Critical Questions

Here's what matters: Regardless of which framework you use, you still need clear answers to the same fundamental business questions.

• Who are your customers?
• Why would they choose you over alternatives?
• How will you reach them?
• Can you build a profitable business serving them?

The framework is just a tool to help you think clearly about these questions. Pick the one that fits your business. Don't force yourself into a framework that feels wrong just because it's what every business planning template asks for.

If reframing "problem" more broadly helps you articulate your value, great. If thinking about differentiation gives you more clarity, use that instead.

Start Here

If you're stuck trying to fit your business into the problem/solution framework, take a step back.

Ask yourself: Are my customers settling for something that doesn't fully meet their needs? If yes, that's your problem statement, even if it's not dramatic or obvious.

If customers aren't settling for anything inadequate, ask instead: What makes me different, and who specifically will value that difference?

Write down your answer. Then use it to drive the rest of your planning. Use our one-page business plan template to get started.

You don't need to solve a world-changing problem to build a successful business. You just need to clearly understand why customers will choose you. Sometimes that's because you solve a problem better than anyone else. Sometimes it's because you offer something different that they can't get anywhere else.

Both can be great businesses. Use the framework that actually fits yours.

Find me on Reddit or LinkedIn and let me know what you think about this approach.