Business Problems
What are the most important problems to solve to run a successful business?
The Challenge Landscape
| Category | Key Issues | Strategic Direction |
|---|---|---|
| Distribution | Channel management, logistics, last-mile delivery, disintermediation threats | Omnichannel strategies, real-time tracking, DePIN for decentralized models |
| Product-Market Fit | Customer validation, value proposition clarity, iteration cycles | Continuous feedback loops, data-driven experimentation, flexibility to pivot |
| Digital Transformation | Strategy alignment, ROI concerns, legacy integration | Phased implementation, customer experience focus |
| AI Implementation | Ethics, workforce impact, governance, data quality | Ethics committees, reskilling programs, clear use cases |
| Talent | Skills gaps, remote work, compensation, engagement | Employer brand, flexible arrangements, continuous learning |
| Cybersecurity | Supply chain vulnerabilities, ransomware, compliance | Zero-trust architecture, incident response plans |
| Data Management | Silos, governance, privacy regulations | Unified platforms, governance committees, compliance |
| Cost Management | Inflation, technology costs, inefficiencies | Zero-based budgeting, automation, supplier optimization |
| Regulatory Compliance | Cross-border complexity, reporting demands | Compliance systems, transparent reporting |
| Supply Chain Resilience | Geopolitical disruptions, shortages, delays | Diversified suppliers, predictive analytics, strategic buffers |
| Sustainability & ESG | Reporting requirements, customer expectations | Comprehensive ESG strategies, sustainability metrics |
| Innovation Management | Balancing core business with new ventures | Innovation labs, stage-gate processes, startup partnerships |
| Customer Experience | Personalization at scale, omnichannel consistency | Journey mapping, AI personalization, channel integration |
| Business Model Evolution | Subscription transitions, platform economics | New revenue model experiments, platform strategies |
Context:
Distribution
Distribution is often considered the biggest challenge to success.
Channel Strategy & Management
- Selecting optimal distribution channels (direct, indirect, omnichannel)
- Managing channel conflict and cannibalization
- Balancing direct-to-consumer with traditional retail partnerships
- Navigating disintermediation threats from manufacturers and marketplaces
Logistics & Supply Chain
- Optimizing warehouse locations and inventory distribution
- Managing transportation costs (40-50% of total logistics expenditure)
- Implementing real-time visibility across the supply chain
- Addressing last-mile delivery challenges (representing 53% of shipping costs)
Technology Integration
- Implementing integrated distribution management systems
- Leveraging IoT for real-time tracking and condition monitoring
- Adopting blockchain for supply chain transparency
- Exploring DePIN for new distribution models
Market Access & Expansion
- Overcoming barriers to entry in new markets
- Adapting distribution strategies for different geographic regions
- Building relationships with local distributors and partners
- Navigating regulatory requirements across jurisdictions
Customer Experience
- Ensuring consistent brand experience across distribution channels
- Meeting expectations for delivery speed and flexibility
- Providing transparent order tracking and status updates
- Managing returns and reverse logistics efficiently
Product-Market Fit
Finding and maintaining product-market fit presents several specific challenges:
Customer Discovery & Validation
- Identifying true customer needs versus perceived wants
- Gathering actionable feedback from early adopters
- Distinguishing between enthusiastic early users and mainstream market potential
- Validating willingness to pay at different price points
Value Proposition Refinement
- Articulating clear differentiation from alternatives
- Aligning product features with customer pain points
- Quantifying value delivered to customers
- Communicating benefits effectively across customer segments
Iteration & Improvement Cycles
- Determining which feedback to incorporate versus ignore
- Balancing feature development with maintaining simplicity
- Managing technical debt during rapid iteration
- Knowing when to pivot versus persevere
Scaling Considerations
- Identifying the right timing to scale beyond early adopters
- Maintaining product quality during growth phases
- Adapting messaging for mainstream market adoption
- Evolving the product to serve larger market segments
Competitive Positioning
- Monitoring competitive responses and market shifts
- Defending against fast followers and imitators
- Maintaining differentiation as the market evolves
- Anticipating disruptive threats to established fit
The Innovator's Dilemma
Delegation
If you cannot delegate you cannot scale. You cannot delegate if you don't have a consistent protocol to follow.
You can't delegate (or reach consensus) if you don't have a standardised practice of how to do things.
Understand what Drives People to help them see the value of their contribution in the big picture.
- Know what you can delegate with confidence of quality
- Play to a team member's strengths and ambitions
- Provide the resources with the necessary level of authority
- Take an interest in the people doing the work and the results
Invest in systems you know people can follow
The Problem: One manager in 10 knows how to delegate effectively. Lacking a shared picture of success to align intentions.
- Lack of clarity of role
- Not measuring outcomes
- Ignoring outcomes
- No failure consequences
The carrot is not always a financial reward
Delegation Checklist:
- Is the JTBD (Job To Be Done) clearly understood?
- Is there a process map for the job?
- Who owns improvement of the process map?
- What type of process, standard or custom?
- Is the role clearly defined?
- What character attributes are required?
- What skills are essential?
- Is there a schedule for running this process or is it triggered by an event?
- What outcomes indicate failure? What can be done to mitigate?
- What outcomes indicate success? How could success expand into bigger opportunities?
Continuous Improvement:
- Who last followed the map to complete the job?
- Did they add feedback to improve the process? If not why not?
- Did their results meet expected quality standards?
If you can't achieve consistency, improvement is guesswork
Links:
Gaining Traction
There is too much unnecessary friction overcoming obstacles to build systems and reliable resources to run a comfortable business.
- Attracting the first customers and establishing a customer base
- Effectively marketing the business and products/services
- Managing cash flow, as expenses can often outpace revenues in the early stages
- Staying resilient and motivated despite slow initial growth or setbacks
- Delivering a high-quality product or service to meet or exceed customer expectations
- Building brand awareness and credibility in the market
Scaling Operations
- Managing rapid growth without compromising on product or service quality
- Hiring and retaining quality employees, and managing larger teams
- Maintaining excellent customer service as the business grows
- Dealing with increased competition as the business becomes more successful
- Expanding the product line or entering new markets
- Implementing more sophisticated systems and processes to handle increased business complexity
- Maintaining cash flow and financial stability during expansion
- Preserving the company culture and values during rapid growth
Software Integration
Systems that don't talk to each other are a massive waste of time and money.