no. 1 Solve a Real Problem

🪶 Rule Summary:

If your product, service or strategy isn’t solving a real problem for a real person, it’s a vanity project – not a business.

Painkillers outperform vitamins every time.

Scenario:

An entrepreneur built an app to help people find gourmet coffee while traveling. Beautiful UX. Slick marketing. Burned through $200K. No one used it — because no one needed it. Coffee lovers already had Yelp, Google, and each other.

Meanwhile, a competitor built a clunky SMS-based tool to help people refill prescriptions in rural areas. It looked terrible, but it worked. It solved a real, painful problem — and they scaled into seven figures in under a year.

The difference?

One chased a cool idea. The other solved a meaningful problem.

Business isn’t about invention — it’s about relevance. When you start by identifying pain points, everything else (product design, messaging, growth) becomes clearer — and more effective.

🪵This rule helps with:

Validating new business ideas
Pivoting from passion project to viable product
Focusing MVP development
Avoiding expensive product flops
Grounding innovation in real-world pain points

🔍 Real-Life Insight:

A compelling example of a U.S. business owner embracing the principle of “solve a real problem” is Chad Howard, who transitioned from a corporate marketing role at Procter & Gamble to founding Halftime Rentals, a portable toilet business in Charlotte, North Carolina. Recognizing a gap in the market, Howard identified the need for improved marketing and service in the portable toilet industry. After six months of research and securing $1 million in funding, he launched the business, which generated over $1.2 million in revenue within eight months. Chad’s story exemplifies how addressing a tangible, overlooked problem can lead to entrepreneurial success.

1. The Origin Story

What real-world problem inspired the creation of your company or product?

🔍 Example: Sara Blakely (Spanx) solved the problem of uncomfortable or unflattering undergarments by cutting the feet off her pantyhose. Real problem, scrappy solution, massive outcome.

2. The Market Misalignment

What was the ‘real problem’ you saw that others in your industry were overlooking or misdiagnosing?

💡Example: Airbnb solved the problem of trust in home-sharing — not just lodging access.

3. The Strategic Shift

When did you realize your company was solving the wrong problem — and what changed when you pivoted?

🧠 Example: Slack began as an internal tool at a gaming company solving communication issues — the game failed, but the real problem solved was how teams talk.

4. The Discipline of Staying Problem-Oriented

How do you keep your team focused on solving real customer problems — not just adding features or chasing trends?

Staying problem-oriented is one of the most powerful disciplines a team can adopt. It keeps work grounded in purpose, guides better decisions, and prevents wasted effort. Here are actionable strategies to help your team stay focused on solving real customer problems:

🔍 1. Start with the Problem Statement

Ensure every project, feature, or sprint begins with a clearly articulated customer problem.
Use frameworks like Jobs To Be Done or problem-centric user stories: “As a [user], I need to [do X] so that I can [achieve Y].”
Ask: “What pain point are we solving?” — and who feels it most?

🧭 2. Make Customer Empathy a Ritual

Use real customer quotes, videos, or complaints in team meetings.
Regularly schedule customer interviews or shadowing sessions.
Share “Customer of the Week” stories that highlight struggles and feedback.

❓3. Ask “Why?” — Relentlessly

Use the 5 Whys method to get to the root of every request.
Don’t take feature requests at face value; ask what problem it solves.
Teach teams to be skeptical of solutions not tied to a problem.

📊 4. Measure Problem Impact, Not Just Output

Use KPIs that reflect problem-solving: reduction in support tickets, task completion rate, NPS tied to specific workflows.
Reward impact, not activity. Praise when problems are avoided or simplified, not when features are just “shipped.”

🛑 5. Say “No” — Clearly and Often

Create a public “Not Doing List” to document shiny object requests you’ve declined and why.
Train your team to defend focus with data, not opinions.
Protect roadmaps from bloat by tying every initiative back to a validated problem.

🔁 6. Close the Feedback Loop

After launching a feature, circle back to the original problem:
- Did we solve it?
- How do we know?
If not, iterate or remove the feature. Let the team see that solving is the goal, not just shipping.

🧠 7. Instill a “Problem-First” Culture

Celebrate questions more than answers in team discussions.
Appoint a “Problem Owner” for initiatives — someone whose job is to ensure the team doesn’t drift into solution-for-solution’s-sake mode.
Make your value proposition about customer outcomes, not product bells and whistles.

✅ More Real-World Examples of “solve a real problem”

🥿 Zappos – Validating Online Shoe Sales

Instead of investing in inventory, founder Nick Swinmurn tested demand by photographing shoes from local stores and posting them online. When someone bought a pair, he purchased it at retail and shipped it himself. The demand was real—Zappos was born.

📂 Dropbox – Testing Demand with a Simple Video

Before building the product, Dropbox created a short explainer video to demonstrate how it would work. It led to thousands of sign-ups overnight, validating interest before a single line of backend code was written.

🏠 Airbnb – Monetizing Extra Living Space

Struggling to pay rent, the founders hosted guests on air mattresses during a local conference. The experience uncovered a huge demand for affordable, short-term stays—and led to the creation of a hospitality giant.

💳 Stripe – Simplifying Online Payments

Online payments were a developer’s nightmare. Stripe’s founders launched with a few lines of code that made integration effortless. Solving that technical bottleneck made Stripe the go-to platform for startups.

💻 GitHub – Streamlining Code Collaboration

Developers were emailing code back and forth—inefficient and error-prone. GitHub built a collaborative platform around Git, making version control easy and enabling open-source to thrive.

💵 Wagestream – Reducing Financial Stress Between Paychecks

Recognizing that many workers live paycheck to paycheck, Wagestream let employees access earned wages instantly. A simple fix to a widespread problem—and a hit with employers and workers alike.

🧬 Rare Genomics Institute – Connecting Rare Disease Patients with Researchers

After meeting a child with an undiagnosed illness, Dr. Jimmy Lin launched RGI to crowdfund research into rare conditions. They turned one family’s struggle into a platform for thousands.

🎨 Penpot – Bridging the Gap Between Designers and Developers

Designers and developers were often out of sync. Penpot created a collaborative tool both teams could use—solving friction at the root of the product development process.

Real Problems. Real Solutions.

These Startups Didn’t Guess. They Solved.

Before scaling, these founders took one critical step: they solved a real problem. Whether it was hosting guests during a conference or simplifying a nightmare integration, these companies found pain points and built with purpose. Their stories prove that timeless principles—like solving something real—still drive the most lasting results.

Key Takeaways for Business Owners

Build-Measure-Learn Loop
- Start with a Minimum Viable Product (MVP)—the simplest version of your idea.
- Release it quickly to test assumptions and gather real-world feedback.
- Use the data to learn what works and what doesn’t, then iterate.
Validated Learning
- Don’t just guess or assume—test hypotheses with customers.
- Every product, feature, or campaign should contribute to validated learning.
Pivot or Persevere
- Be willing to make a pivot (a fundamental change in strategy) if something isn’t working.
- Or persevere if data shows you’re on the right track—just refine and scale.
Innovative Accounting
- Traditional metrics (like vanity metrics) can mislead.
- Focus on actionable metrics that directly relate to user behavior and product success.
Continuous Deployment & Split Testing
- Launch small, frequent changes and test variations (A/B testing) to understand user preferences and behavior.
Entrepreneurship = Management
- Startups need a new kind of management system—one focused on agility, learning, and adaptability rather than control and planning.
Lean Thinking Isn’t Just for Startups
- Established businesses can use lean principles to innovate internally and launch new products with less waste and better customer alignment.

📘 Recommended Reading:

“The Lean Startup” by Eric Ries
A modern classic on building businesses that learn before they launch. Ries emphasizes rapid experimentation and validated learning — always rooted in solving actual customer problems, not chasing shiny ideas.

Book Summary: The Lean Startup by Eric Ries

The Lean Startup presents a methodology for building businesses and launching products more efficiently, especially under conditions of extreme uncertainty. Eric Ries emphasizes rapid experimentation, validated learning, and agility over rigid business planning. Drawing from his experiences in Silicon Valley startups, he proposes a systematic, scientific approach to creating and managing successful startups.

https://www.youtube.com/@LennysPodcast

Eric Ries is the creator of the Lean Startup methodology, author of the New York Times bestseller The Lean Startup, and founder of the Long-Term Stock Exchange (LTSE). He’s also a multi-time founder and currently advises startups, VC firms, and larger companies on business and product strategy.

In today’s episode, we discuss: • The current state of the Lean Startup methodology • Common misconceptions about the Lean Startup methodology • Understanding how to actually think about MVPs (minimum viable products) • When to pivot and when to stay the course • Thoughts on AI and how to deal with uncertainty • How to structure your company around core values and create products that benefit humanity • The philosophy behind Eric’s current big idea: the Long-Term Stock Exchange

8 Rules inspired by The Lean Startup

Solve a Real Problem
Build something people need, not just something you can build.

Build–Measure–Learn
Focus on learning, not perfection. Get your idea into the real world fast, measure results, and iterate.

Start Small, Test Fast
Use a minimum viable product (MVP) to quickly test assumptions and avoid building the wrong thing.

Validate Before You Scale
Don’t invest in growth until you’ve proven the product works for early adopters.

Innovation is a Process, Not a Gamble
Use structured experiments to reduce risk and uncover what works.

Action Over Assumptions
Replace guesswork with data. Let actual customer behavior guide decisions.

Pivot or Persevere
If your hypothesis is wrong, change course with intention—don’t just keep going out of momentum.

Continuous Deployment, Continuous Learning
Small, frequent updates accelerate learning and reduce wasted effort.

💬 Got a Story?

Become an Executives Institute Collaborator.

Some of the most impactful businesses didn’t start with a big idea — they started with a real problem someone couldn’t ignore.

We’re looking for short stories, insights, or turning points from CEOs, founders, and business leaders that answer one simple question:

What real problem did you decide to solve — and how did that change everything?

Whether it was the spark that launched your company, a strategic pivot, or a lesson learned the hard way, we want to hear the moment you realized this was the problem worth solving.

Optional follow-up questions to consider:

How did you first discover the problem?
What made it “real” enough to act on?
Were others solving the wrong problem?
How did solving it change your business trajectory?

Submit your story in 300–600 words, or record a short video or voice memo.

We’ll feature select submissions inside The Executives’ Institute — highlighting the timeless business rule behind every great move: solve a real problem.

Share your story…

your insight might just spark someone else’s turning point.

👉 CONTRIBUTE YOUR INSIGHTS TO RULE NO. 1

Insight:

“Early on, I was obsessed with making something ‘cool.’ It wasn’t until I started listening — really listening — to what frustrated people daily that things changed. Solving a problem changed my company — and my confidence.”
— Anonymous Member

Solving a Real Problem
By Kurt McSparron, Founder, The Executives’ Institute

The Executives’ Institute wasn’t born from theory—it was born from the real conversations I’ve had with hundreds of business leaders over the years. The same frustrations kept surfacing: too much noise, not enough clarity. Leaders felt overwhelmed by trendy advice, quick hacks, and endless “thought leadership” that rarely delivered lasting results. What they wanted—what we all want—was something more foundational. Something timeless.

That’s the problem we set out to solve.

At The Executives’ Institute, we return to the fundamentals. We’ve curated a living collection of timeless Business Rules—principles that don’t change with the headlines—each paired with practical insight and recommended reading that sharpens leadership thinking. This isn’t another course, podcast, or guru. It’s a growing resource designed to help leaders make clear, confident decisions by returning to what works.

And just as importantly, we invite our members into the process. Leaders can contribute their own experiences, surface new challenges, and shape the evolution of our collective library. We’re building something that adapts—not to trends, but to real-world situations.

Because solving real problems in business doesn’t start with flashy ideas. It starts with disciplined thinking, shared wisdom, and an unapologetic commitment to what actually works.

That’s why The Executives’ Institute exists.

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