Have you ever looked at a business plan and wondered, “what problem are they trying to solve?” I know I have. A Lack of Understanding on How to Write a Problem Statement for a Business Plan One of the most common things that hold new entrepreneurs back is their lack of understanding of how to start writing their business plan. In this article, I am going to try and break down and help you understand the un-understandable.
If you get stuck in the process of writing a business plan, a problem statement may be what you need. In this step, we take an existing problem or need and create a statement that really grabs the reader’s attention. It will present your business in an authentic way while clearly articulating the problem or opportunity. You can choose to go above and beyond this guide by using other techniques like sympathy and empathy to further engage the reader. You will also want to keep your focus narrow to grab the reader’s attention. Both of these tactics can be included as part of your outline for your problem statement.
How to write a problem statement for business plan
A problem statement is one of the most important parts of a business plan, as it clearly states the issue the company is going to address. It’s also a great opportunity to set your company apart from its competitors by talking about how you’re going to solve a problem that other businesses are not able to solve as well.
Writing a good problem statement is easier said than done, but if you follow these simple tips, you’ll be able to come up with one in no time:
1. Be specific. In order to come up with an effective problem statement, you need to be very specific about the problem that your business will solve. For example, instead of saying that your company will create new products based on customer feedback, write “Our company will create new products based on customer feedback and recommendations by 2020.” This way, it will be clear for everyone what exactly your business is trying to do and how it plans on doing it.
2. Don’t use clichés or buzzwords where they aren’t needed. While they may sound good at first glance, clichés usually don’t add anything valuable to your business plan because they have become
A problem statement is a one-sentence summary of the problem that your business idea solves. It’s a high-level overview of what you want your business to do.
A problem statement can also be used as part of the executive summary in a business plan. The executive summary is the first section of your plan, and it summarizes all the key points about your business and explains why the venture is worth pursuing.
The problem statement should be written in the first person (“I”) and should be short and concise. It should tell readers why they need this product or service, how it will benefit them, and what problems it solves.
A good way to create a problem statement is to start with these questions:
What problems do customers have? What are their biggest frustrations? What issues are they facing that they would like solved? What needs do they have that aren’t being met right now?
Why does this matter? Why do these problems matter? How would solving these problems help people live better lives or improve society in some way?
A problem statement for a business plan is a short, concise statement that describes the problem your business will solve.
A good problem statement is essential to your business plan. It gives you a focus and allows you to complete your initial research and begin writing your plan.
The problem statement should be written in the first person and should reflect the point of view of the customer or user. For example, if your company manufactures a new type of fabric, then your problem statement might read something like this: “The customer needs an ultra-thin fabric that can be worn under clothes without showing any lines.”
The best approach to writing a problem statement is to make it as specific as possible, but not so specific that it doesn’t apply to anyone but yourself. An overly general statement might read something like this: “There is a need for better clothing.” This statement may be true, but it doesn’t say much about what you’re doing or how customers will benefit from it.
How would solving these problems help people
A problem statement is a short, concise statement that identifies the problem or issue that you are attempting to solve. It should be directly related to your business goals and objectives. The purpose of this statement is to provide a context for your entire business plan.
The problem statement should be one sentence in length and written in active voice. It should also be clearly stated so that it can be easily understood by others who read it. The following example illustrates what a good problem statement might look like:
“Our company wants to increase sales revenue by 5% over the next 12 months.”
Once you have determined what your objective is, you’ll need to create a plan of action (or strategy) to achieve it. A strategy is simply a set of actions designed to address an identified problem or opportunity in a manner that will achieve the desired results.
You can develop several strategies for addressing any given issue or problem, but it’s important to remember that there may not be enough time or resources available for all of them at once. For example, if you want to increase sales revenue by 5% over the next 12 months, but also want to cut costs by 2%, then which one do you focus on first?
How to write a profit and loss statement for a business plan
The problem statement is the backbone of your business plan. It tells your audience what you want to accomplish, but it also forces you to think critically about your idea.
The problem statement should be written in the first person, using active language and avoiding vague statements like “the needs of our customers” or “our product is popular among consumers.”
For example:
I want to open a coffee shop that caters to working professionals by offering free WiFi and comfortable seating.
The sentence above is a good example of how not to write a problem statement. It’s too vague and doesn’t tell me who you want to reach or why they should care about your product or service. The following sentences are better examples:
My target market is young professionals who are always on the go and need a place where they can take a break from their busy schedules. I want them to feel comfortable enough at my coffee shop so that they come back again and again for their daily dose of caffeine!