What's Your Problem?

If you're in business, you need to know what your problem is; what is the problem that you are in the business of solving?

T. Harv Eker, high-octane creator of Secrets of The Millionaire Mind, says that an entrepreneur is someone who solves problems for a profit. Good definition. The more problems you solve, the more profit you make. The bigger the problems you solve, the more profits you make.

When you realize this, and look at your business in terms of solving customer problems for a profit, you can't get to problems fast enough. Bring them on! Seeing problems as opportunities for profit is quite a bit different from seeing customer problems as a nuisance to be avoided.

One household appliance company kept hearing laments from their customers about how hard it was to get rid of their old clothes washers and dryers. Apartment dwellers especially had a problem, with no place to store their old appliances until they could hire someone to eventually haul it away. While the company had ignored this customer problem for years ("We're in the new appliance business, not junk hauling!"), an employee suggestion led them to consider the opportunity it presented.

They were delivering the new appliances anyway. They had capable staff onsite with the equipment needed to move appliances. They had space on the delivery truck, since they had just unloaded the new appliances. The staff were returning to the truck empty handed. The truck was returning to the depot empty. The company decided to offer a removal service, charging a small but highly profitable fee to haul away the old appliances at the same time as they delivered the new ones. They built a relationship with a recycling organization and a used-appliance outlet to get rid of the old equipment. The customer problem was solved, the company's profits increased.

How many more problems might they be able to solve?

• Customers have a problem unpacking, installing and connecting the new appliances. It's often pretty complicated and needs a good handy man to complete. Solve that problem with some cross training and a few tools, and you have an on-the-spot installation crew. More profit opportunity.
• Customers have another problem getting rid of all the packaging and large cardboard boxes from the new appliances. Solve that problem by taking the packaging back in the mostly empty truck. More profit opportunity.

So, next time your customers complain, or share a problem with you related to your business dealings with them, think about how you might solve that problem and turn it into profit. Because that's what entrepreneurs do.