Right, identifying problems is the easy part of innovation, right? That if you just build something cool, the customers will magically appear? Well, I’ve got news that might sting a bit – most companies are spending millions solving problems nobody actually has.
Here’s the thing: I’m going to show you exactly how to identify real problems worth solving in 5 straightforward steps that will completely transform your approach to innovation. Let’s crack on.
1. The Problem-First Mindset (Or Why Your Solution Probably Sucks)
Let’s be brutally honest for a moment. Most entrepreneurs and corporate innovation teams are absolutely obsessed with solutions.
They’ll spend months perfecting features nobody asked for.
They’ll burn through investment capital building products nobody wants.
And they’ll wonder why their brilliant idea failed to get traction.
The core issue? They never properly understood the problem they were trying to solve in the first place.
Clayton Christensen’s famous “milkshake” example perfectly illustrates this. When McDonald’s wanted to improve milkshake sales, they initially focused on tweaking the product based on what they thought customers wanted. But when they actually studied how people used their milkshakes, they discovered something fascinating: Many customers bought milkshakes in the morning as a breakfast solution that kept them full and entertained during long commutes.
This insight completely changed how they approached improvements. They weren’t competing with other desserts—they were competing with breakfast bars, bagels, and bananas.
So here’s the massive mindset shift you need to make: Fall in love with the problem, not your solution.
Anyone else feeling personally attacked right now? Good. That’s precisely the point.
Wait until you see what’s next… this is where it gets particularly interesting.
2. Uncovering Problems People Actually Care About
Now, let’s put on our imaginary glasses and dive into how to actually uncover problems worth solving.
The techniques fall into three main buckets:
Customer Empathy Research
This is where you actually—wait for it—talk to real humans. I know, revolutionary concept! But it’s insanely effective.
Empathy interviews are structured conversations where you dig below the surface to understand:
- What jobs people are trying to get done
- What frustrates them about current solutions
- What would make their lives measurably better
The trick is to shut up and listen. Most people ask leading questions that confirm their biases rather than revealing genuine insights.
Here’s a cheeky little trick that works brilliantly: Watch what people do, not just what they say. In January 2025, one of my clients discovered that customers claimed to use their productivity app daily, but usage data showed weekly patterns at best. This massive discrepancy led to a complete product redesign that increased actual engagement by 217%.
Jobs-To-Be-Done Theory
Now, this is where things get properly interesting.
JTBD theory shifts focus from demographics (who’s buying) to the underlying job the customer is “hiring” your product to do. It’s like having X-ray vision into customer motivation.
Take Uber, for example. The job wasn’t “get a taxi” or “go from A to B.” The real job was “get somewhere reliably without the anxiety of not knowing when your ride will arrive or if you have enough cash on you.”
See the difference? One focuses on the functional task, the other on the emotional and social dimensions that actually drive decisions.
Hang on a second… next one’s a doozy.
Corporate Problem Mapping
Here’s something most consultants won’t tell you: Large corporations are walking problem goldmines for startups.
Corporate problem mapping involves systematically identifying inefficiencies and pain points within large organizations that startups can solve. These problems typically fall into three categories:
- Internal process inefficiencies (communication breakdowns, workflow bottlenecks)
- Customer experience gaps (unmet needs, service delays)
- Innovation barriers (legacy systems, risk aversion)
The best part? Corporations often have budget already allocated to solving these issues, making sales cycles dramatically shorter.
Let me put on my imaginary glasses for this next bit…
3. Frameworks That Turn Vague Problems into Actionable Insights
Having a fuzzy understanding of a problem is like trying to ride a unicycle through a car wash wearing clown shoes. You’ll make a splash, but you won’t get very far.
What you need are frameworks that transform those vague notions into crystal-clear problem statements. Here are the absolute best ones:
The Customer Empathy Map
This visual tool divides customer insights into four quadrants:
- What customers say (direct quotes)
- What they do (observable behaviors)
- What they think (beliefs and values)
- What they feel (emotions and frustrations)
When you map these elements, patterns emerge that reveal deeper problems than what’s initially visible.
The Problem Statement Canvas
This is literally my favorite tool for articulating problems worth solving. It follows this format:
“[User segment] struggles with [pain point] because [root cause], leading to [negative impact].”
For example: “Small business owners struggle with cash flow management because they lack real-time visibility into their finances, leading to missed opportunities and stress-induced decision making.”
That’s infinitely more useful than “small businesses need better accounting software,” isn’t it?
The specificity forces you to clarify your thinking and creates a north star for solution development. It’s absolutely game-changing when done properly.
Am I overthinking? Definitely. But that’s part of the fun!
4. Modern Tools That Supercharge Problem Discovery
Now, I’m going to show you how cutting-edge technologies are completely transforming how we uncover problems:
AI-Powered Analytics
Tools like Hotjar, FullStory, and Amplitude have evolved from simple analytics to AI-driven insight platforms.
They don’t just show you what users are doing; they highlight patterns and anomalies that indicate underlying problems. For instance, they can identify where users consistently abandon a process, hover uncertainly, or attempt repeat actions—all signs of confusion or frustration that point to solvable problems.
What’s particularly brilliant is how these tools can segment users based on behavior rather than just demographics, revealing problems specific to how people actually use products rather than who they are.
The word “analytics” might mean comprehensive business intelligence to one person and mind-numbing data overload to another—but these new tools are making insights accessible regardless of your data science expertise.
Corporate-Startup Partnerships
This is massive in 2025.
Large companies are increasingly creating structured programs specifically designed to connect their internal problems with startup solutions.
These partnerships typically follow three models:
- Problem Broadcasting: Corporations publicly share specific challenges they need solved
- Reverse Pitching: Corporate teams pitch problems to startups instead of the other way around
- Innovation Sprints: Short collaborative periods where startups and corporate teams work together to define and validate problems
For startups, these partnerships provide unprecedented access to real-world problems with built-in customers. For corporations, they offer fresh perspectives and rapid problem validation without the constraints of internal processes.
Anyone else see where this is going? These collaborations are creating entirely new innovation ecosystems.
5. From Problem to Problem Statement: A Step-by-Step Process
Let’s get super practical. Here’s the exact process I use with clients to transform vague problems into actionable statements:
Step 1: Gather Raw Insights
Conduct at least 5-8 customer interviews, focusing on questions like:
- “Walk me through how you currently handle [process].”
- “What’s the most frustrating part of [activity]?”
- “Tell me about the last time you tried to [accomplish goal]. What obstacles did you face?”
Record these conversations (with permission) and look for emotional cues—sighs, frustrated laughs, excited gestures—that indicate pain points or desires.
Step 2: Identify Patterns
Group similar frustrations, workarounds, and desired outcomes. The most compelling problems will appear repeatedly across multiple conversations.
Step 3: Define User Segments
Not all problems affect users equally. Segment your findings by:
- Experience level
- Role or job function
- Context of use
- Frequency of encountering the problem
This prevents the classic mistake of building solutions too broad to effectively solve any specific problem.
Step 4: Drill to Root Causes
For each potential problem, ask “why” at least five times to get to the underlying cause. This technique, borrowed from Toyota’s production system, helps ensure you’re addressing the root issue, not just symptoms.
Step 5: Craft Your Problem Statement
Now, plug your insights into the framework:
“[User segment] struggles with [pain point] because [root cause], leading to [impact].”
For example: “Marketing managers at mid-sized companies struggle with attributing sales to specific marketing campaigns because data exists in multiple disconnected systems, leading to misallocated budgets and inability to prove their team’s value.”
That’s a problem statement with teeth! You can almost immediately start envisioning potential solutions.
What I’m going to do is challenge you to write at least three problem statements following this format before you even think about solution development.
Bringing It All Together: The Problem Statement Validation Checklist
Not all problem statements are created equal. Use this checklist to evaluate whether you’ve identified a problem truly worth solving:
- Specificity: Is the problem clearly defined rather than vague or general?
- Frequency: Do people encounter this problem regularly?
- Pain Level: How painful or frustrating is this problem for users?
- Current Solutions: Are existing alternatives significantly inadequate?
- Willingness to Pay: Would people readily pay to have this problem solved?
- Market Size: Are enough people affected by this problem to support a business?
- Timeliness: Is this problem becoming more relevant due to trends or changes?
- Unique Insight: Do you have special knowledge or capabilities related to this problem?
If your problem statement scores highly across these dimensions, you’ve likely identified a genuine opportunity.
The Problem-First Future of Innovation
The most valuable companies of the future won’t be those with the most advanced technology or the biggest marketing budgets. They’ll be the ones that most deeply understand the problems they’re solving.
By embracing a problem-first mindset, using structured approaches to uncover and articulate problems, and leveraging modern tools for validation, you’ll build solutions that truly resonate with customers—because they address real needs rather than imagined ones.
The difference between struggling startups and successful ones isn’t usually technical capability—it’s problem clarity. The same applies to corporate innovation initiatives.
If you want more of these insights on identifying problems worth solving, subscribe to my newsletter where I share case studies and frameworks each week. Or even better, start talking to your customers today. You’ll be absolutely shocked by what you discover when you actually listen.
What’s the biggest problem you’re currently trying to solve? Is it specific enough? Have you validated it with real users? I’d love to hear your thoughts in the comments below!
