Business ideas have become synonymous with solving a problem. However, do you always have to solve a problem when coming up with a business idea? I will highlight the supporting and opposing arguments concerning a problem-solution-based approach to business ideas.

Business ideas, and finding the right one, are not easy tasks in this day and age. There is stiff competition and there is a chance that any good idea that you come up with has already been implemented. 

This has led to many professionals, consultants and even academics advocating for a problem/solution approach to validating business ideas. 

Business ideas should solve a problem?

Okay, let’s look at the solution-based approach to business ideas. 

I do support this principle and my ventures so far have implemented it.

The benefits of a solution-based approach is that:

  • It enables identifying a pain point and therefore a demand 
  • Is based on a founder’s personal experience and the problems that they have personally faced 

The issue with this approach is that:

  • Most solutions have already been implemented 
  • Resourceful companies are constantly looking for problems and they have the ability to provide solutions and dominate the market with ease.

However, not all successful ventures are based on solving a problem. 

Consider the following business models/companies:

-Coca Cola 

-Dating apps such as Tinder 

-OnlyFans

None of these companies solve a problem per se. Yet, they are billion-dollar ventures. With dating apps, one may argue that they solve the problem of loneliness. However, one does not necessarily need a dating app to meet their partner. 

The reason why these companies are successful is one factor: demand. 

And demand is not always necessarily based on solving a problem but rather on people’s willingness to pay for what you offer. 

To summarise: solving problems is a useful approach to coming up with business ideas. However, the aforementioned should not be the exclusive principle and founders must prioritise demand as the core factor. 

Struggling to come up with a business idea? As a business consultant and former tech founder, this is my specialty. Contact me to see whether I can help you with finding the right business idea or check out my advisory program specifically designed for new/prospective business owners.

About | My name is Sohrab Vazir. I’m a UK-based entrepreneur and business consultant. At the age of 22, and while I was an international student (graduate), I started my own Property Technology (PropTech) business. Now I help aspiring business owners and job seekers fulfil their potential.