How to Find Problems to Solve as an Entrepreneur: 8 Key Steps

Trying to learn how to find problems to solve as an entrepreneur? The process involves becoming a goal-oriented person, listing your current knowledge and experiences, identifying frustrations you’ve seen firsthand, and identifying what unique value you can provide to solve the problem. Once you’ve found your idea, you can start building a plan to turn your concept into a sustainable business.

What is a Problem Worth Solving?

A problem worth solving is one that people care about enough to take action. It creates a real opportunity for you to make a meaningful impact while building a business.

Vitamin or Pain-Killer

You want to know if your business is offering a “painkiller” or a “vitamin” for your customers. But what does this mean?

Vitamins are nice to have but not essential, and people often need convincing to make a purchase. Painkillers tackle problems people feel urgently and are motivated to fix immediately. Even an imperfect solution can be valuable if it eases a pressing issue.

Painkiller	Vitamin
Solves a critical need	Enhances an existing solution
Must use	Should use

Addressable Market

Understanding the size of your market helps you see if the problem can support a sustainable business. A product in high demand creates room to grow, while a problem with a tiny market may limit your potential. Even local services need enough customers to thrive over time.

Solvability

A problem is worth pursuing only if you can realistically solve it. You need the right mix of skills, knowledge, and resources, as well as access to the right connections. Without these, even a great problem may remain out of reach.

How to Find Problems to Solve as an Entrepreneur

Here’s a quick guide on how to find problems to solve as an entrepreneur. As you use it, you may find yourself revisiting previous steps as new insights emerge or circumstances change.

1. How Can You Become a Goal-Oriented Person?

Setting goals gives you a sense of direction and a reason to focus your energy. Goals are not just checkpoints – they are guides that help you figure out what matters and what steps to take next. You’ll find that when you set specific goals, your brain naturally starts noticing opportunities and obstacles, and you feel more productive and efficient.

2. What Are Your Current Skills and Knowledge?

Start by making a list of what you already know how to do. Include work experience, hobbies, and hands-on skills. This step is important because it helps you see where you have an advantage.

When you build a business around skills you already understand, you reduce the learning curve, make smarter decisions faster, and can spot problems related to your area of expertise that others might overlook.

3. What Problems Have You Seen or Experienced?

Some of the best business ideas come from firsthand experience. Pay attention to frustrations, delays, and repeated obstacles in your own work or industry.

For example, if you’ve worked in a warehouse, moving from associate roles to forklift operator, you’ve seen inefficiencies that others might overlook. You know what processes slow things down and which tools are essential.

4. Is This Problem Interesting for You?

Sustaining effort over time requires curiosity and genuine interest. If your only motivation is money, you’re likely to feel drained when challenges arise.

After all, you’ll spend hours researching, experimenting, and refining your solution. Choosing a problem that sparks even moderate interest makes the journey more enjoyable and increases your chances of sticking with it through tough moments.

5. How Will You Solve the Problem?

Start by brainstorming ways to make people’s lives easier, save time, or improve experiences. The real value of your business idea comes from its ability to genuinely help someone. Think about creating something unique or improving an existing solution in a meaningful way.

Solutions that relieve urgent pain points are easier to sell, and they tend to withstand competition better. As mentioned previously, ideally you want to offer something people need, not just something nice to have.

6. What Is the Size of Your Market?

Market sizing gives you a picture of your potential audience, revenue, and growth. In other words, understanding your market size helps you see whether solving this problem is worth your time and effort.

Here are some quick tips on how to determine the size of your market.

1. Start with your total addressable market.
2. Identify a specific customer segment to focus on.
3. Estimate how many of these customers are likely to buy.
4. Multiply this number by the penetration rate.

HubSpot provides an excellent guide on market sizing.

7. What Pricing Should You Consider?

Setting your pricing correctly ensures your business is sustainable while remaining competitive. Look at what competitors charge for similar products or services, and try to understand why customers pay that amount.

• Visit their websites to see their pricing.
• Pose as a potential customer and ask questions.
• Talk with partners or resellers.
• Check online forums or reviews.
• Talk directly with people who might buy your product.

8. What Are the Operating Costs Involved?

Before you launch, you need a clear picture of what it takes to run your business. This includes daily operating expenses and the costs required to get started. Think about materials, tools, workspace, and the time you’ll need to invest. Being realistic about costs helps you avoid surprises and plan more effectively, giving your idea a stronger foundation from day one.

What to Do After You Have Found Your Idea

Once you have identified a problem worth solving and shaped it into an idea, the next step is turning that idea into reality. This is where the real work begins, but having a guide makes the process less overwhelming.

Create a Roadmap

Think of this roadmap as a guide, not a perfect plan. You’ve already done some important steps by identifying a problem and brainstorming solutions. Now you’re laying out a journey to bring your idea to life.

1. Validate your idea: Ask people for honest feedback and focus on one part of your business at a time. This helps you confirm if your idea solves a real problem before you commit too much.
2. Write a business plan: Define your mission and goals, your target market, your competition, and the ways customers will discover your product or service.
3. Develop a prototype: If you are developing a product, create a small/basic version so you can test interest before investing significant time or money.
4. Test the concept: Start offering your product or services on a small scale to test the concept. For example, if you are starting a lawn care service, try offering to mow a few lawns in your neighborhood or provide basic maintenance for friends and family.
5. Understand the legal implications: Make sure your business has the right foundation by understanding regulations, getting the proper licenses, and registering officially.
6. Secure financing: Some businesses can start with personal savings, while others need outside funding. If your idea requires financial support, now is the time to explore loans or investors.
7. Build market awareness: Spread the word about your business through methods that fit your audience. This could include radio ads, influencer partnerships, SEO, social media, email campaigns, and more.
8. Hire employees: Once the foundations are in place, you may need help. Hiring for customer service, sales, marketing, or accounting frees you up to focus on growth.

Leverage Technology

Don’t hesitate to use technology to your advantage, especially if your background is in a blue-collar trade. Tools like invoicing software, expense tracking apps, analytics dashboards, and time-tracking systems can save you both time and money. Technology also helps with marketing, giving you more ways to connect with your customers.

Accept Failure as Part of The Process

Every entrepreneur fails at some point, and that’s part of the process. The important thing is to keep trying even when things don’t go as planned.

As Thomas Edison famously said, “I have not failed. I’ve just found 10,000 ways that won’t work.”

Each attempt teaches you something valuable and brings you closer to the solution that does work.

Additional Tips for Finding Your Idea

These strategies can help spark inspiration and guide you toward opportunities you may not have considered.

Expand Your Knowledge

Investing in your own learning opens doors to new ideas. Books and courses can introduce you to fresh perspectives and proven strategies.

For example, you can check out my book Blue Collar Cash, where I share insights from over 30 years of experience as an entrepreneur, mentor, and life coach in the blue-collar trades.

Find a Mentor

Having a mentor can accelerate your journey. In fact, 75 percent of executives credit their success to having mentors. A mentor provides guidance, feedback, and accountability that help you avoid common mistakes and stay motivated.

Acquire Other Businesses

Not every business starts from scratch. Sometimes, buying an existing business can give you a head start with established customers, processes, and brand recognition. This can be a practical way to step into entrepreneurship while reducing some of the risks.

Network With Like-Minded People

Surrounding yourself with other entrepreneurs creates opportunities to learn and grow. Attend local events or join online communities. Networking can spark new ideas and open doors to valuable partnerships.

Study Emerging Trends

Keeping an eye on new trends helps you anticipate what people will need in the future. Social media is a powerful tool for spotting shifts in behavior and demand. By staying ahead of the curve, you can position yourself to solve tomorrow’s problems today.

Learn From Failure Stories

You don’t have to experience every failure yourself to benefit from the lessons. Seek out failure stories through YouTube, podcasts, conferences, or books.

As Isaac Newton said, “If I have seen further, it is by standing on the shoulders of giants.”

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Ken Rusk is a blue-collar entrepreneur who has started several successful endeavors and mentored hundreds of young people in their pursuit of a satisfying career and fulfilling life. Discover how Ken’s approach to life and work can help you set and achieve your goals – all while avoiding the nearly inescapable trap of college debt. Get a copy of the Wall Street Journal bestselling book, Blue Collar Cash today!