Dr. Thomas J. Powell explains why founders should lead with the problem their company solves, not what they do. Investors evaluate problem first, then solution, impact, and credibility. Start with the emotional weight of the challenge.
Chapters
Hey, Tom Powell with the Founder's Office here. Today we are talking about the first of the six Cs, the challenge. So many times founders are excited about what they do and their team is excited about what they do. So they start talking about what they do instead of what problem they solve. Well, the capital that's out there looking to invest in companies is looking to see what problem is being solved. Then they're looking to see how is it being solved? And then they're looking at seeing what does that matter if it does get solved? And lastly, they're looking for that credibility. Those are the pieces or the ingredients that go into there. So let's start with the problem that you solve. People will oftentimes, especially in the United States, say, what do you do? And the right answer to start that conversation is not what you do, but what problem you solve. What change are you making in the world and why does it matter? The you can go about how you do it. People will actually get engaged in the conversation. So as you're starting there and you're looking at it, be sure that you can articulate the problem you solve that fast and do it in a manner that pulls on the heartstrings. If you're solving cancer, talk about how that feels when someone is ill beyond all belief. Or in the case, if you have something that makes going through cancer treatments that much better. Talk about the cancer treatment and what it does to the person and how you solve that. Those are just simple little pieces. It could be how you fix the challenges that people are having with just simply staying fit. Or how it fixes something about being on time or being more efficient. Any one of those are what you're fixing. But when you can articulate it in a manner that says, me too, oh, I totally understand that, then you're going to find the right alignment of investors. Not all capital is the same. Check us out@the foundersoffice.com you can put your deck through it. And we'll be continuing through these six Cs. Have a great day.
