How To Write a Problem Statement Using a Simple Template

A problem statement is a clear explanation of a business issue that needs resolution. Writing one can help you define the challenges across your business and find creative solutions, from validating a new product or business idea to improving your service or enhancing your marketing messages.

For example, before designing its countertop sparkling water system, Aerflo interviewed hundreds of consumers to understand their pain points and frustrations with existing sparkling water options. 

What they learned helped them pinpoint the customer problems they wanted to solve: waste. Equipped with this sharpened understanding, they developed a better product. “Those pain points really led us down a path of refillable capsules—not single-use,” says Cofounder John Thorp on an episode of the Shopify Masters podcast.

This guide explains what a problem statement is, how it works, and what it should include, with a template to help you write your own problem statements.

What is a problem statement?

A problem statement is a concise description of a specific issue or obstacle, why it matters, and how it affects your business. It may also include, when available, information about its underlying causes. This problem-solving technique doesn’t include a proposed solution, but focuses only on clearly defining the challenge. 

For example, you might write a problem statement about rising cart abandonment, declining customer satisfaction, or delays in warehouse fulfillment. 

Problem statement templates and examples

Businesses use different types of problem statements depending on what they’re trying to understand. 

One common framework is the customer problem statement, which identifies customer goals, frustrations, and unmet needs. It focuses on who is affected, what they’re trying to accomplish, and the obstacles preventing success. Businesses often adapt this same framework to define internal challenges and operational issues.

Here are templates for and examples of each:

Customer problem statement

Template:
“I am a [type of customer] trying to [achieve a desired outcome], but [there are barriers to achieving desired outcome] because [of the root cause of those barriers], which makes me feel [emotions].”

Example: 

“I am a dog owner trying to feed my dog healthy food, but the fresh food options on the market are inaccessible and inconvenient because they’re expensive and require preparation, which makes me feel frustrated.” 

Business problem statement

Template: 

“In our organization, [role] tries to [achieve a desired outcome], but [barriers to achieving this desired outcome arise] because [of the root causes of those barriers], which [causes a problem that affects our business].”

Example: 

“In our organization, customer service agents try to provide personalized service, but they often don’t have the time because of our outdated software, which reduces customer satisfaction, prompting them to leave negative reviews, which discourage potential buyers.”

Ways to use a problem statement

• Validate your business idea
• Improve your product
• Refine your brand messaging

Here are a few common ways to use problem statements in your business:

Validate your business idea

One of the most effective ways to develop business ideas is to identify a problem worth solving. A problem statement can help you clearly define that problem and confirm there’s a market with a genuine customer need before investing time and resources in a business that offers a solution.

Before launching imperfect food delivery service Odd Bunch, Divy Ojha tested his business idea by defining the problem he wanted to solve—food waste—rather than the product he wanted to build. 

As Divy says on Shopify Masters: “I looked at a problem, defined it, said, ‘OK, I think this is what I can do to solve it.’ The first step was to verify that that pain point existed on the supply side.”

Improve your product

When a product isn’t performing as expected, the “obvious solution” isn’t always the right one. Defining the problem and gathering customer feedback can help you understand what’s driving the issue before deciding what to change. 

For example, Divy initially believed customers wanted complete control over the contents of their Odd Bunch produce boxes. However, when subscriptions and order frequency began to decline, customer research revealed that too much customization felt like a chore. 

“My logic was telling me something that was in complete contradiction with what the consumers were telling me,” Divy says. “We decided to go with the consumers.” 

Odd Bunch simplified its offering to fixed-price boxes of fruits and vegetables, signing up about 200 customers within the first few hours of launching the new model. “We never really looked back from that point onwards.” 

Refine your brand messaging

Problem statements can help you develop stronger brand messaging by clarifying what problem you are solving for customers. Market research helps you determine what customers care most about.

For example, Fiona Parfrey, cofounder of clean period products company Riley, started her business thinking it would solve a sustainability problem for customers by creating a product that’s better for the planet. But through customer research, she learned that her audience had a different priority. 

“One thing really surprised me was that the health messaging was actually far more important for people than the sustainability element,” says Fiona. “I was really shocked by that, because I think people really do care about the planet. But the health benefits are a little bit more personal and emotive to them. So the sustainability element is important, but it’s secondary.”

With this clearer understanding of the problem from the voice of the customer and their perspective, Fiona says the team could write more resonant brand messaging.

How to write a problem statement

1. Start with a question
2. Identify stakeholders
3. Research the problem
4. Define the problem
5. Analyze root causes
6. Add context

The hardest part of writing problem statements is staying focused on the problem rather than looking for potential solutions. A step-by-step approach can help, as well as a problem statement template to organize your thoughts.

Here’s how to write your own problem statement:

1. Start with a question

Start with a question you want to find the answer to, such as: “Why are our sales reps behind on their goals?” or “Is there room in this market for a new product?” 

Your question will help you determine what kind of research you need to do to better understand the challenge or problem. It’s also a good way to ensure you take the time to deeply understand the issue before jumping to conclusions. This question won’t become part of your actual problem statement, so it doesn’t need to be polished.

2. Identify stakeholders

Who does this problem impact most? An internal department or team? Your ideal customer? 

If the problem impacts a segment of customers, it can be helpful to create a persona to represent that portion. 

A persona is a hypothetical representative customer who has all the defining attributes of the type of person who buys your product (or who you want to buy your product). By describing their tastes, wants, and needs in detail, you can better understand the problems they face.

3. Research the problem

In this information-gathering phase, focus on how the people closest to the problem actually experience it. Conduct interviews with customers or internal stakeholders or send out surveys or questionnaires. 

If you want to know more about how an issue impacts customers, you can conduct surveys, interviews, focus groups, or use social listening tools.

If the issue is internal, observe existing workflows firsthand by job shadowing. Spend time walking through the day-to-day work of the person facing the problem and document what you see before drawing conclusions.

4. Define the problem

Distill your findings from the research phase into a single issue you’d like to address. If multiple problems surfaced, create a separate problem statement for each rather than attempting to squeeze in everything.

Try using this formula: [A person or group] is trying to [achieve a goal] but [is experiencing these blockers].

5. Analyze root causes

Now that you’ve defined the problem, add context by exploring the root cause of the blockers you identified in the previous step. 

At this point, you’re not looking for a viable solution, but you do want to ensure your problem statement addresses underlying issues and not simply the symptoms of those issues. This nuance is important.

For example, flower delivery company Fresh Sends regularly gathers feedback from both purchasers and recipients to pinpoint where problems occur. 

Cofounder Ty Hiss says on Shopify Masters that rather than simply noting that a purchase disappointed the customer, the team investigates whether the issue stemmed from shipping, the flower arrangement, hydration, or another area. This helps the company “continually have a superior product.” 

6. Add context

The last step in writing a problem statement is to identify the impact of the problem by asking how this problem makes your customer feel or how it affects your business. This is the “so what” of the problem statement. It should answer the question: “Why is this important?”