"What is the problem?"

That question might sound straightforward, but it’s one of the most critical - and often neglected - questions in business. Without asking it, we risk doing many things without focus, leaving us puzzled about what's working and what's not.

Uncovering a clear problem can be a game-changer. It can transform businesses, spark innovation, redefine brands and offerings, create new value, build something different, and create lasting competitive advantages.

To get there, however, you must first name the problem you aim to solve.

Here are some examples:

• Traditional card processing required expensive equipment and complex contracts that smaller businesses couldn't afford. Square's problem was, "How can we make it easy for small businesses to accept card payments?"
• Stylish, well-designed, and affordable furniture was yet to be available, even though many category buyers wanted it. IKEA's problem was, "How can we make stylish, functional furniture affordable?"
• Email was the dominant communication tool in workplaces, resulting in confusing and disorganised conversations and slow or missed responses. Slack's problem was, "How can we make team communication easier, more enjoyable, and more productive?".
• Cable and satellite TV required lengthy subscriptions was expensive and came with schedules and lots of content you didn't want, while DVD sales were inconvenient. Netflix's problem was, "How can we provide unlimited entertainment at an affordable price?" In working on this one, they uncovered a business problem, too, as they initially had to rely on third-party content, which was expensive, "How can we secure a future where we don't rely on third-party content to sustain subscriber growth?" Make our own.
• Buying stylish glasses was inconvenient and costly, with limited options and high mark-ups from brick-and-mortar opticians. Warby Parker's problem was, "How can we make stylish eyewear affordable and accessible?"
• Traditional accounting software was complex, expensive, and desktop-based, making it inaccessible for many small and medium-sized businesses. Xero's problem was, "How can we make accounting accessible, easy, and affordable for small businesses everywhere?"
• Respiratory care devices were uncomfortable and invasive, leading to patient discomfort and reduced compliance. Fisher & Paykel Healthcare's problem was, "How can we make respiratory care comfortable and effective for patients?"
• Language-learning programs were costly, lengthy, and not very engaging. Duolingo's problem was, "How can we make language learning accessible and fun for everyone?"

Starting the problem-solving process is a journey of discovery. It begins with a simple question, 'What is the problem?' This question holds the key to unlocking your business's potential and guiding you from where you are to where you want to be.

So, to unlock your business's full potential, what’s the one problem you could solve?