Welcome back!

1. Welcome back! Your guide to the YBI Innovation Challenge Session 2: Defining the Problem

2. Welcome back… Part two: • Four most prominent problem issues/areas among young entrepreneurs • Entrepreneurship training • Mentoring • Access to Finance • Access to Market • Working your way toward a “Problem Statement”

3. 1. Four most prominent startup problem areas/challenges Let’s take a closer look at each one: • Entrepreneurship training • Mentoring • Access to Finance • Access to Market

4. 1. Issue #1 probes: Entrepreneurship training • What is the problem’s geography? Identical everywhere? • Is it universal across all business life stages? • Is it a content problem or an “access” problem? I just can’t find it • Is it a “language” problem? Does the content itself translate universally? • Is it a “skill” or “concept” problem? Teach coding or general management? • Can digital tools solve the problem?

5. 1. Issue #1 : entrepreneur training problem definition Among many “problem issues” to consider: • Tons and tons in English already • Separating free vs. paid • Live vs. canned vs interactive courseware • Academic vs. commercial vs. Pro bono Ycombinator, Seqoia, Accenture

6. 1. Issue #1 : entrepreneur training problem definition Issues: • Tons and tons in English already • Separating free vs. paid • Live vs. canned vs interactive courseware • Academic vs. commercial vs. Pro bono Ycombinator, Seqoia, Accenture Narrowing: • Is the problem the content itself or finding it? • …or finding it vs. knowing good from bad? • …or mapping entrepreneurs’ need/skill to the right course?

7. 1. Issue #2: mentoring

8. 1. Issue #2 probes: mentoring • Is there an accessible pool of skilled mentors? • Do they know the “right stuff” for area entrepreneurs? • Are they properly motivated, incentivized, trained? • What is the problem’s geography? Identical everywhere? • Is it universal across all business tasks, life stages? • Are there cultural issues with giving/getting help? • Is it a “language” problem? • Can digital tools solve the problem?

9. 1. Issue #2 : mentoring problem definition Among many Issues to consider: • Identifying and Qualifying Mentors • Matching Mentors to Mentees • Monitoring Mentors’ Delivery, Contributions, Respect • Motivating the Good, Sunsetting the not-so-good

10. 1. Issue #2 : mentoring problem definition Issues: • Identifying and Qualifying Mentors • Matching Mentors to Mentees • Monitoring Mentors’ Delivery, Contributions, Respect • Motivating the Good, Sunsetting the not-so-good Narrowing: • Can/should we start with specific skills or stages? • Mentor training, monitoring, recognition/reward needed? • Is this a problem in a specific geography?

11. 1. Issue #3: access to finance

12. 1. Issue #3 probes: access to finance • Is it universal across all business life stages? • Is the issue cultural, wealth, investor education, trust? • How funded vs. unfunded businesses define the problem? • How investors, incubators, leaders describe the problem? • Is the problem unique to its local geography? • Do some young entrepreneurs deserve/earn more help/support than others? …we’ll let you ask the questions from here

13. 1. Issue #4: access to markets problem definition • Is the issue cultural, wealth, investor education, trust? • How do funded vs. unfunded businesses define the problem? • How investors, incubators, leaders describe the problem? • Is the problem unique to its local geography? • Do some entrepreneurs deserve more help/support than others? …we’ll let you ask the questions from here

14. 1. Issue #4 probes: access to markets • Is the problem local markets or “expansion” markets? • Is it a b-to-b problem or b-to-c or both? • Is this a “channel” problem and can startups support that cost? • Is the market digital or analog? Is digital access adequate? • Is the problem unique to its local geography? • Is product value proposition, pricing a contributor? • Is team skill set a contributor? Industry knowledge? • Can you organize a network or infrastructure to help? …we’ll let you ask the questions from here

15. 1. In Summary…Define or Narrow the problem definition • Can/should you start by picking 1 of 4? Up to you! • Don’t start with a narrow definition of the problem • Gather a bunch of user data, then begin refining… • …but stay on the lookout for a more pressing problem focus

16. 1. In Summary…Define or Narrow the problem definition • Can/should you start by picking 1 of 4? Up to you! • Don’t start with a narrow definition of the problem • Gather a bunch of user data, then begin refining… • …but stay on the lookout for a more pressing problem focus Do: • Keep an open mind as you define the problem • Always focus on level of pain, importance of job to be done • Push customers for examples of the problem and pain

17. 2. Working your way toward a “Problem Statement” “A problem well stated is half solved.”six sigma trainer what’s a problem statement? A clear definition of the issue(s) • It includes a vision and an issue statement • It will (not now) add the solution method • Never longer than two sentences, usually one • Revise it again and again as you talk to users

18. 2. Working your way toward a “Problem Statement” Getting there: An Old Journalist’s Trick… Who, What, When, Where and Why! WHO does the problem affect business type, job type, locale, number or percent of businesses WHAT is the issue and the impact/severity of the issue WHEN does the problem occur? How frequently/regularly WHERE does it happen, by location, department, or task WHY does it happen?

19. 2. Working your way toward a “Problem Statement” Getting there: A simple example “Startups of all kinds, anywhere on Mars, cannot ever THE WHOTHE WHERE WHEN attract investmentssince there are no banks or websites THE WHY for them to contact investors or receive funds. They are all going out of business as a result. THE WHAT/SEVERITY

20. 2. Working your way toward a “Problem Statement” Getting there: One more simple example Bugs in our software releases happen all the time, THE WHATTHE WHEN and we are losing many new and repeat customers THE WHAT/SEVERITY and salespeople who lose their commissions. Poor tech leadership and QA are killing us! THE WHO

21. 2. Working your way toward a “Problem Statement” One other trick: The Five WHYs RIPPED FROM ENGINEERING TEXTBOOKS • Discuss any problem/situation with users or team members • As “why it happened” five times in a row • Follow one train of thought…deeper and deeper

22. 2. Working your way toward a “Problem Statement” Another trick: The Five WHYs AN EXAMPLE FROM ITS FOUNDERS AT TOYOTA: • Why did the robot stop? The circuit overloaded and the fuse blew 2. Why is the circuit overloaded? There wasn’t enough lubrication 3. Why was there insufficient lubrication? The oil pump didn’t circulate enough oil 4. Why isn’t the pump circulating enough oil? The pump intake is clogged 5.Why is the intake clogged? Because nobody cleaned it

23. 2. Working your way toward a “Problem Statement” Another trick: The Five WHYs LOOKING AT A BUSINESS… • Why isn’t anybody using our mentor finder? They don’t seem to know it exists. 2. Why don’t they know it exists? We don’t have a budget for Adwords 3. Why can’t we get awareness without Adwords? We haven’t tried email or social media 4. Why haven’t we tried email or social media? The website team focuses on building websites. 5.Why is nobody in charge of this? Hmmm…very good question 

24. Part Two: Quick Recap • Develop your “hit list” of questions “around” the problem • Encourage customers to illustrate answers with stories • First probe the key environmental issues • Then dig in to narrow the problem by function, geography, business stage, type, etc. • And then try to take it apart • Develop a first draft problem statement, always in pencil • Refine it as you learn from user interviews …and never stop asking “why!”

25. Next subject: “Problem Discovery:” Rules and Tools