But not all real problems lead to good businesses.
There are problems all around us. People need housing, health care and food. They want delight, belonging and status.
When a company shows up in the marketplace with a product or service that people eagerly choose to buy, it’s possible to make a profit. If there are assets and other ways to offer something at a premium, a business can actually thrive.
But sometimes, a problem doesn’t lend itself to a private solution. Or, a private solution might simply be a low-cost commodity, something we need, but because it’s available from many sources, it might not actually be a good business for any given entity.
We are unlikely to run out of problems. And finding a business that solves a problem is a great first step. But it also helps (a lot) if it’s also a good business.