Good businesses solve real problems
But not all real problems lead to good businesses.
There are problems all around us. People need housing, health care and food. They want delight, belonging and status.
When a company shows up in the marketplace with a product or service that people eagerly choose to buy, it’s possible to make a profit. If there are assets and other ways to offer something at a premium, a business can actually thrive.
But sometimes, a problem doesn’t lend itself to a private solution. Or, a private solution might simply be a low-cost commodity, something we need, but because it’s available from many sources, it might not actually be a good business for any given entity.
We are unlikely to run out of problems. And finding a business that solves a problem is a great first step. But it also helps (a lot) if it’s also a good business.