Breaking down a

problem statement

Biome Guide
#BuildStrong
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Introduction
A problem statement is a meticulously A key element to business ideation, it ensures clarity
engineered description of an issue while aligning all stakeholders with a shared
faced by a target group. understanding of the challenge and its scope.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

A well-crafted problem It serves as a foundation for tracking progress,

measuring outcomes, and fostering innovation
statement focuses on by clearly defining the problem and its impact.
This, in turn, reduces risks, enhances decision-
addressing critical making, and ensures every step drives
measurable results—making it an essential tool
challenges, unites in building resilient ventures.
teams around a
common goal, and
guides the creation of
effective solutions.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

What is a problem statement?

A problem statement is a concise It forms the foundation for validating a
articulation of a specific challenge, business idea by clearly defining the issue,
faced by a target group, that an highlighting its significance, and steering
entrepreneur seeks to address. the development of a solution that meets
the needs of potential customers.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Key elements that need to be included in a

problem statement.
There are four key questions that definitely need to be addressed in any problem statement.

What is the Who has this Why is this How big is the
problem? problem? a problem? problem?
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

There are some other key elements one should

consider while drafting a problem statement.
Answering all these will help define and convey the pain point much more precisely.

Where is When was the How is the How often is

the problem problem first problem the problem
observed? observed? observed? observed?

Once we have answers to these key Once the draft problem Does it identify a gap (pain point), explain what, why and
questions, we will analyse and statement is ready, we need to who pertaining to that gap, quantify the gap in terms of cost,
consolidate them by capturing the ask ourselves if it contains the size, quality, and so on, and emphasise why this gap needs to
essence of all elements. following information: be filled?
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

What is not a problem statement?

When writing a problem statement, it is essential to Following are the elements
identify key elements while avoiding common distractions that should not be included in
that can turn focus away from the core issue. your problem statement:
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Symptoms
A problem statement should focus
on first principles, not effects.
Symptoms are surface-level
manifestations that can distract from
the core problem.

Ask yourself: "Is this the core fundamental

problem?" If you're describing outcomes
rather than root causes, you're likely focusing
on symptoms.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Solutions
While solutions are the end goal, by
including them in your problem
statement you risk bypassing crucial
validation steps.

Keeping your problem statement solution-

neutral allows you to mitigate bias and
develop the most effective solution that is
informed by research rather than assumptions.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Multiple Problems
When dealing with complex, multi-
faceted problems that impact
various stakeholders differently, it is
important to address each facet of
the problem separately.

Separating the various aspects of a complex

problem allows you to focus your research
and validation efforts, and avoid mixed or
misleading signals.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Examples of a good problem statement

Problem statement 1:

75% of 1 million+ annual biopsies for prostate cancer are

inconclusive. This results in a $4B loss to the healthcare system
and ~8% of patients being hospitalised for undue complications.

Reason:
The problem statement clearly Explains the impact of the problem: Provides a quantifiable metric on
identifies a specific pain point: Loss to the healthcare system and the amount of damage caused to
Inconclusive results from biopsies for some percentage of patients being the healthcare system
prostate cancer hospitalised for complications
What is the problem? Who is being affected and how? How big is the problem?
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Examples of a good problem statement

Problem statement 2:

Limited access to affordable and reliable farm credit hinders the growth
and productivity of small-scale farmers in India. Currently, only 30% of
farmers have access to formal credit sources.

Reason:
Clearly identifies a specific pain point: Explains the impact of the problem: Provides a quantifiable metric
Limited access to farm credit Hindered growth and reduced (only 30% of farmers have
productivity for small-scale farmers access) to emphasize the extent
of the problem

What is the problem? Who is being affected and how? How big is the problem?
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Template for a strong problem statement

Consumers are increasingly experiencing ______________(what?),
leading to ______________________________________________(affects).
Approximately (quantifiable figure)______ of consumers find XYZ
irrelevant and disruptive, resulting in (impact)___________________.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Example of a bad problem statement

Problem statement:
Consumers are increasingly experiencing ad overload and intrusion across multiple digital platforms,
leading to ad fatigue and negative user experiences. Approximately 70% of consumers find online
ads disruptive and irrelevant, resulting in a 25% decrease in perception and engagement for brands.

Let’s break down this problem statement in terms of our 3 key questions:
What is the problem? Who has this problem? How big is this problem?
Ad overload and intrusion across Consumers of digital 70% of overall consumers
multiple digital platforms, leading to ad platforms are facing the problem
fatigue and negative user experiences

Based on the above understanding, the solution would be to reduce the number of ads pushed across
platforms to reduce ad fatigue and negative user experience, which does not make business sense.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Revised problem statement :

Companies are facing a drop in brand perception resulting in a 25% decrease in online user engagement
owing to the fact that 70% of consumers are finding online ads disruptive and irrelevant.

What is the problem? Who has this problem? How big is this problem?
Decreased brand Companies/brands that 25% decrease in engagement due
perception witness by a deploy online ads to 70% of consumers finding
drop in engagement online ads disruptive and irrelevant

Possible solution: Increase in the quality and relevance of ads, and reimagining online ad delivery.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

How to write a good problem statement?

(Example templates)
All good problem statements need to definitely answer the 4 key questions

What is the Who is facing Why is this a How big is this

problem? this problem? problem? problem?
(Quantifiable market size)

Rememeber, your problem statement is based on your early understanding of a problem. It is

fine to build it on assumptions, which you will validate in the next steps.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Example template 1:
Most back offices of ______________(the who?), _________________________
in India, still rely heavily on (the what) _________________________ for quality assurance.
This leads to (the why)_________________________ in an industry employing over
_________________________(how big) people across the country.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Example template 2:
Limited access to affordable and reliable (the what)______________ hinders (the why)
_________________________ of (the who) _________________________ in India. Currently only (how big
—> %/ number/ quantifiable figure)_________________________ of XYZ have access to all sources.
 BREAKING DOWN A PROBLEM STATEMENT - BIOME GUIDE

Example template 3:
(How big)______________ of the world is affected by (the why) _________________________ due to
(the what) _________________________ .This results in a (how big)_________________________ loss to
(the who)_________________________.
Thank you
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