Sidki.com » Problem Statement?!

A solution to no problem?

I was in a discussion with an investor the other day at an event, when a founder approached him. The founder eagerly asked to pitch his business idea, and the investor even hinted "Give me your elevator pitch"

But what followed was... puzzling.

The founder launched straight into their AI-powered, cutting-edge solution—buzzwords flying left and right. Yet, when they finished, both the investor and I were left wondering:

What problem is this solving?

After an awkward pause, The investor had to explicitly ask, "Why exactly will your planned customers need your services?" This was a clear indication that the founder had missed the most crucial part of his pitch.

This awkward encounter highlighted a common pitfall in startup pitches, but I believe a little preparation goes a long way. Let me share the fundamentals of crafting a compelling problem statement.

A well-crafted problem statement makes all the difference. Here’s how to get it right:

✅ Start with the pain point – What real challenge are your target customers facing? Is it costing them money, time, or peace of mind?

✅ Quantify the impact – Use hard data or real examples. Saying, “Businesses lose $X million annually due to this inefficiency” is far more compelling than “Businesses struggle with this issue.”

✅ Show the ripple effect – A great problem statement highlights both direct and indirect consequences. How does this issue disrupt broader workflows, profits, or customer satisfaction?

✅ Validate market demand – Prove that the problem is widespread. Market research, customer interviews, and industry trends all help build credibility.

✅ Explain why now – Timing is everything. What shift—technological, regulatory, or cultural—makes this problem urgent to solve today?

Investors Don’t Invest in Solutions—They Invest in Problems

Your AI-powered platform, your proprietary tech stack—all of that should support your problem-solving approach, not be the centerpiece of your pitch.

As one successful founder once said:

💡 “Fall in love with the problem, not your solution.”

What are your thoughts on problem statements? Have you seen (or made) this mistake in pitch meetings?

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