Problem Statement As The Key Point Of A Startup

Startups are basically evolved by identifying the problem statement. The more time is spent in identifying the correct problem statement, the more will be the chances for its success. The correct problem statement here implies the problem which is faced by majority section of the market or the problem statement which is of a matter to everyone. Also the correct problem statement implies that it must solve a current issue or something in near future and should be of long time use not the one that can be over in a time frame. E.g. Making products reach at door steps is solution to the problem statement of easy shopping and was of concern to almost majority of the people all across the globe and amazon and flipkart provided that facility at that time when it was required. Many startups have failed because they have started a highly innovative product design which were of no use or demand of the market. Around 10 years back, many startups aiming at robotics were started but failed because that time robotics was not something which was required by the people. But now, when the technology evolvement and the Industry 4.0 advancement, the robotics aiming startups are flourishing because people have identified the use of robots and their requirements. In today’s time, when e-commerce has made everything available at doorsteps, it made people to trust on the platforms and created a habit of getting everything at home. With this in consideration and also keeping in mind about people’s love for food is ever ending, some innovative minds have started making food available at the door steps. And the startup Swiggy which started this, has reached to heights of tremendous success in a very short period of time.

Swiggy is a food delivery startup started by some students of BITS Pilani. Those students were able to find out something which is required for the people as well as it is acceptable by the people in the current time. Thus they took initiative and are successful now. The founders of swiggy have taken shipping problem statement first but they realized that it was not something which is of use to the people directly and then they took the home food delivery in 2014. The confidence on their idea, quality, service and the business model has been the key point of their success and they are far ahead from their competitiors like zomato, foodpanda, uber eats, etc.

But in the same year another startup was established, PepperTap which sut down miserably in 2016 due to its negative margins on every order. Peppertap was a grocery delivery startup but started at the time where people’s need was not that. That time people were trying to trust on e-commerce. It was not the correct place to start with that problem statement at that time. Thus getting funding of more than $50 million USD, it led to a massive failure because of only that they started wrong thing at right time. But now when home delivery is lifestyle of people, they could have been successful. This right time opportunity for grocery delivery is taken up by Grofers or BigBasket and they are successful now.

Hence the main key point which differentiates the success and failure of any startup is the problem statement that is chosen by them. That problem statement and their own innovative approach to solve that at the right time when it is required leads to the success of the startup. Also the business model that is developed by the startup plays a vital role.