The First “Value” Lens: Problems
Problems. We all have them, and we’re willing to pay for solutions that solve them. But understanding the value of those solutions starts with focusing on the specific problems that people experience.
The first step is creating a solution that eases the pain experienced by a human being. If you’re the only solution in the market, you’ll have a first-mover advantage and gain early traction in your niche. However, maintaining that advantage requires setting the bar higher than simply easing people’s pain.
Otherwise, you’ll end up competing with other companies that solve the same problems for the same people in the same ways. You’ll have created competitive parity, not competitive differentiation.
To go beyond, you must solve problems that bring joy, relief, delight, or elation to human beings relative to other solutions. When people love using your solutions or interacting with you or your business, you’ll create an unparalleled positive feedback loop.
But solving the right problems, for the right people, in the right ways is essential to creating more value. It works by improving adoption of your products and services while also improving the lifetime value of your customers. It’s how you know when your company is experiencing product-market fit and is ready to scale rapidly with funding.
