From Solving Problems to Building Demand: The True Startup Journey

How Startups Evolve From Addressing Pain Points to Creating New Desires

In the world of startups, success often hinges on two paths: either solving a real problem or building something people want. These two pillars dominate entrepreneurial thinking, but many startups don’t always begin with clear foresight. Some focus on addressing a distinct pain point, while others tap into human desires—sometimes even creating demand where none existed before. Interestingly, over time, what starts as problem-solving can evolve into something people can’t live without, making it seem like it was built for them all along.

This article dives deeper into these two categories by examining popular startups and their journeys. We’ll explore whether they began by solving a problem, creating demand, or transforming into something that people would eventually crave. The attached image provides examples of successful startups categorized under “build something people want,” but the reality is that many started by solving real problems.

The Two Paths: Solving Problems vs. Building Desire

1. Solving a Problem:

Many startups are born from the desire to address inefficiencies or unmet needs. These companies are typically solution-oriented, focusing on improving existing systems or making life easier for users. Their journey often starts with the question: "What’s broken, and how can we fix it?" Examples include Stripe (fixing the difficulty of online payments), Instacart (saving time on grocery shopping), and HubSpot (helping small businesses with marketing).

2. Building Something People Want:

On the other hand, some startups are more focused on creating demand. These companies often identify unrecognized desires and build new experiences or behaviors around them. Think of Instagram, which made photo-sharing an enjoyable and social activity, or Facebook, which redefined how people connect. These startups tap into the human psyche, delivering products that people didn’t realize they wanted until they had them.

The startups in the image fall under the umbrella of "building something people want," but many of them were solving problems first. Over time, they transformed their solutions into products people came to desire, creating entire ecosystems where none had existed before.

Examples From the Startup World

Let’s break down some of the companies from the image to better understand how they fit into this framework:

1. Facebook:

- Both: Initially, Facebook solved the problem of staying connected with friends, particularly within college communities. Over time, it grew into a platform where people wanted to share everything—from life updates to photos. What started as a solution to communication evolved into something people now use daily for entertainment, news, and social interaction.

2. Stripe:

- Solving a Problem: Stripe addressed the complexity of integrating online payment systems, especially for startups and developers. It solved a technical problem, making it easier for businesses to handle transactions.

3. Airbnb:

- Both: Airbnb began by solving the problem of high accommodation costs for travelers. It then created demand for unique, local experiences, positioning itself as the go-to platform for affordable, one-of-a-kind stays. It didn’t just solve the problem of lodging—it built a travel culture around shared spaces.

4. Instagram:

- Building Something People Want: Instagram didn’t set out to solve a pressing problem; rather, it built on people’s desire to share visually appealing moments. It succeeded by making photo-sharing seamless, fun, and social. This tapped into users’ need for self-expression and connection.

5. HubSpot:

- Solving a Problem: Small businesses often lack the resources and expertise to build marketing campaigns. HubSpot solved this problem by creating tools specifically designed for small and medium-sized enterprises (SMEs), allowing them to compete more effectively in digital marketing.

6. Klarna:

- Both: Klarna tackled the challenge of securing payments for e-commerce companies. However, its "buy now, pay later" system soon became something consumers wanted, offering flexibility and an appealing way to manage online purchases.

7. Uber:

- Both: Uber started by solving the problem of unreliable taxis in urban areas, offering on-demand rides at affordable prices. Over time, it revolutionized the entire concept of urban mobility, creating demand for on-demand transportation services globally.

8. Spotify:

- Both: Spotify initially solved the problem of piracy in the music industry by offering a legal and convenient way to stream music. As the platform evolved, it became something people wanted for the seamless, endless music experience it offered. Today, it’s hard to imagine life without access to a vast library of music at our fingertips.

The Evolution of Demand

Many of the startups we celebrate today didn’t set out to build something people wanted from the outset. Instead, they focused on fixing something broken, streamlining an experience, or making life easier. However, as their user bases grew and people began to interact with their products, they evolved into demand generators.

Uber, for example, started as a solution to unreliable and costly taxi services but became something people now expect in their daily lives. Similarly, Airbnb began with solving travel accommodation costs, but it quickly grew into a lifestyle choice for travelers seeking unique experiences. In many cases, these companies’ success lies in their ability to transform a solution into something people desire, eventually making it seem like they were designed for that purpose all along.

In the startup world, it’s essential to understand that solving problems and building something people want are not mutually exclusive. The most successful startups often begin with a problem and then evolve into something that people grow to want. By solving an immediate need and then shaping demand, companies can establish themselves as essential parts of everyday life.

The journey from problem-solving to demand creation is what makes many of these startups iconic. By addressing the immediate pain points of their users and then evolving to meet deeper desires, they move beyond utility to become integral to the way we live, work, and play.

Image Used in Cover - Credit: Guillermo Flor (@Guillermofvs)