Sure, your business might provide a service or product, but what does it really do?
Chances are it solves a problem on behalf of your customer, and when you clearly identify what that problem is and how you fix it, you begin to have a much more meaningful conversation with your existing and potential customers.
So let’s investigate further…
All business is about problem solving
Every business that is successful solves a problem of some sort, and in many instances it’s not the problem you would initially expect.
For example, Apple sells smartphones, tablets and computers, but the problem they solve is actually connecting their customers to each other via technology.
Similarly, Google is a search engine that sells advertising. But what they really do is allow people to access information.
And it’s the same with every business model. For example, a hairdresser cuts hair, but the actual solution they provide is ensuring people feel good about themselves.
A real estate agent sells houses, but they really connect people with their property dreams and aspirations.
Why it matters
Understanding what problem your business really solves assists you as the business owner in a number of ways.
When you know what your business’ true function is, it lays the foundation of:
- Identifying your ideal customer
- Your vision and mission statements
- Your customer service
Identifying your ideal customer
When you understand the problem your business solves, identifying and engaging in a conversation with your ideal customer becomes a whole lot easier.
You can quickly determine the target market that is likely to have that problem and the type of assistance and service they will require to fix it.
In turn, this impacts your elevator pitch and marketing plan, allowing you to clearly define the messages you need to share with your potential customers and your existing clients.
Vision and Mission
One of the most important aspects of understanding the problem you solve is to then incorporate it into your Vision and Mission statements.
Take Google for example. As I mentioned, the business of Google is all about selling advertising and providing a search engine, but what they really do is provide access to information.
This is clearly reflected in both their Vision and Mission statements, which are as follows.
Google vision: “To provide an important service to the world-instantly delivering relevant information on virtually any topic.”
Google mission: “To organise the world’s information and make it universally accessible and useful”.
Your customer service
Knowing the problem you solve then underpins exactly the customer service your business will provide.
You set the expectation with your ideal customer using your Vision, Mission and marketing, and then you need to meet it by solving the problem you have identified via the level of customer service your ideal client expects.
The final word
Regularly asking yourself “what does my business really do?” is critical to business performance and success. And it may change over time.
But when you clearly identify what problem your business solves, it opens a wealth of opportunity for marketing, improved service or products, and ultimately assists with business growth.
If you’re looking to discuss your business and define what it really does, I am available to assist, and you can book a discovery call with me here.