Handbook
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Idea & Validation
Finding Problems Worth Solving
Not all problems make good businesses. Learn how to identify problems that are painful enough, frequent enough, and valuable enough to build around.
The most common startup mistake isn’t building the wrong solution. It’s solving the wrong problem.
Many founders start with a solution—a technology they’re excited about, a feature they wish existed—and go looking for a problem it might solve. This rarely works. The best startups start with a deep understanding of a real problem experienced by real people.
But not all problems are created equal. Some are annoying but not worth paying to fix. Some are painful but too rare to build a business around. Some are big but have entrenched solutions that are “good enough.”
Here’s how to find problems worth solving.
The Problem Hierarchy
Problems exist on a spectrum of intensity:
Level 1: Latent Problems
The person has the problem but doesn’t realize it. These are nearly impossible to build businesses around because you have to convince people they have a problem before you can sell them a solution.
Level 2: Passive Problems
The person knows they have the problem but isn’t actively trying to solve it. Either the pain isn’t severe enough or they’ve given up. Dangerous territory—hard to convert passive sufferers into paying customers.
Level 3: Active Problems
The person is actively looking for solutions. They’re searching Google, asking friends, trying products. This is where you want to be.
Level 4: Urgent Problems
The person needs a solution immediately. They’re willing to pay more, make faster decisions, and tolerate imperfect solutions. Ideal.
Target Level 3 and 4 problems. If people aren’t actively seeking solutions, you’ll spend all your energy on education and convincing rather than selling.
The Problem Trifecta
A problem worth building around has three characteristics:
1. Frequency
How often does this problem occur? A problem someone faces daily is more valuable than one they face monthly. High-frequency problems mean more opportunities to engage, more chances to prove value, and stronger habits.
A B2B tool used every day is more valuable than one used quarterly. A consumer app opened multiple times daily creates stronger retention than one used weekly.
2. Intensity
How painful is this problem when it occurs? Mild annoyances don’t drive purchases. Hair-on-fire emergencies do. The best problems make people say “I would pay anything to make this go away.”
Signs of high intensity:
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People complain about it unprompted
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Failed attempts to solve it in the past
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Significant money already being spent on imperfect solutions
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Time being wasted on manual workarounds
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Career or life consequences if the problem isn’t solved
3. Willingness to Pay
Does this problem affect people or organizations with money, and are they willing to spend it? A severe problem experienced by broke college students is less attractive than a moderate problem experienced by well-funded enterprises.
Consider:
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Who experiences this problem?
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What’s their budget authority?
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What are they already spending on adjacent solutions?
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Is the problem important enough to their core objectives?
Where to Look for Problems
The best problems come from your own experience and deep domain expertise. Here’s where to look:
Your own life. What problems do you face repeatedly? What inefficiencies do you tolerate? What do you wish existed? Founders who deeply understand the problem firsthand have an enormous advantage.
Your professional domain. What problems exist in your industry that outsiders don’t see? What do you know that others don’t? Where is time and money being wasted?
Adjacent to existing solutions. What are people complaining about with current products? What features do they want that don’t exist? What populations are underserved by existing solutions?
Technology shifts. When new technology emerges (AI, mobile, blockchain), old problems suddenly become solvable in new ways. What problems were previously too expensive or too difficult to address?
Regulatory changes. New laws create new compliance requirements, which create new problems. Boring, but often lucrative.
Behavior changes. When people start behaving differently (remote work, social media, etc.), new problems emerge. The pandemic created countless new problems worth solving.
Validating Problem Severity
Once you’ve identified a potential problem, validate its severity:
Find people experiencing it. Can you find at least 10 people who have this problem? If you can’t find them, either they don’t exist or you can’t reach your market.
Assess current behavior. What are they doing about it today? If nothing, the problem probably isn’t severe enough. If they’re using expensive/clunky solutions, there’s opportunity.
Measure time and money spent. How much time do they waste on this problem? How much money do they spend on inadequate solutions? These numbers indicate willingness to pay.
Listen for emotion. When people describe the problem, do they get frustrated? Animated? Resigned? Emotional language indicates pain. Shrugging indicates tolerance.
Ask about priorities. “Of all the problems you face, where does this rank?” If it’s not top-three, it’s probably not urgent enough.
Problems to Avoid
Some problems look attractive but make terrible businesses:
"Nice to have" problems. If the response to your solution is “that’s cool” rather than “I need that,” you’re building a vitamin, not a painkiller.
Problems you can’t articulate. If you can’t clearly describe the problem in one sentence, you don’t understand it well enough.
Problems that require behavior change. The best solutions fit into existing workflows. Problems that require users to completely change how they work are much harder to solve.
Problems with free alternatives. If a good-enough free solution exists, you need a very compelling reason why people will pay.
Problems only you have. Your problem might be unique. Before building, verify that others share it.
The Problem Statement Test
Can you fill in this template?
[Target customer] struggles with [specific problem] when trying to [job to be done]. Currently they [current workaround], which results in [negative outcome]. They would pay [amount] to [desired outcome].
If you can fill this out with specifics and evidence, you have a problem worth solving. If you’re guessing, you need more research.
Key Takeaways
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Target active or urgent problems—not latent or passive ones
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Good problems are frequent, intense, and affect people willing to pay
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The best problems come from your own experience and domain expertise
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Validate severity through customer behavior, not just their words
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Avoid nice-to-have problems, problems requiring behavior change, and problems only you have
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