Prob­lem and tar­get group analy­sis: How to val­i­date for impact star­tups

This sec­tion is for you if …

  • you’re start­ing – or already work­ing with your team on – an impact-dri­ven start­up.
  • you’ve col­lect­ed rel­e­vant data on the prob­lems and chal­lenges your tar­get group and stake­hold­ers face.

In this sec­tion, you’ll learn how to …

  • test and chal­lenge your assump­tions.
  • val­i­date the data you’ve col­lect­ed.
  • do all of this in a clear and struc­tured way.

Val­i­date your assump­tions about the prob­lem

These four steps will help you sharp­en your prob­lem analy­sis and devel­op solu­tions that tru­ly fit your tar­get group’s needs.

1. Orga­nize your inter­view data and iden­ti­fy themes

Gath­er all your notes, quotes, and obser­va­tions from the inter­views – use sticky notes or a dig­i­tal tool.

Group sim­i­lar respons­es togeth­er and look for recur­ring themes or pat­terns. Clus­ter­ing insights into cat­e­gories helps you pri­or­i­tize and under­stand which needs are most urgent. For exam­ple, you might dis­cov­er that cer­tain chal­lenges come up often or that your tar­get group shares com­mon behav­iors.

2. Review your assump­tions crit­i­cal­ly

Take a close look at the assump­tions you’ve made about the prob­lem and your tar­get group. Do the inter­view respons­es match your ear­li­er research and expec­ta­tions? Or do they chal­lenge them?

3. Update your prob­lem tree and social change matrix

Use the val­i­dat­ed insights from your inter­views to refine your prob­lem tree and your social change matrix. This gives you a well-ground­ed prob­lem analy­sis of the issue – which is also use­ful for your com­mu­ni­ca­tion or pitch deck.

4. Cre­ate a tar­get group pro­file

You can cre­ate this using either a per­sona or the val­ue propo­si­tion can­vas (a lean­er alter­na­tive).

Per­sonas are fic­tion­al but real­is­tic pro­files that help you under­stand your audi­ence and design bet­ter solu­tions. You should con­sid­er the fol­low­ing points for each per­sona: For each per­sona, include:

  • A name and image to make them more relat­able.
  • Age, gen­der, edu­ca­tion, job, loca­tion, income.
  • Behav­ior pat­terns (e.g., What tech do they use?)
  • Their goals and needs.
  • Key pain points and chal­lenges.
  • Moti­va­tions and val­ues – what dri­ves them, what mat­ters to them?

The val­ue propo­si­tion can­vas is anoth­er great tool to make sure your solu­tion aligns with real needs. Start with the cus­tomer side (your tar­get group) – you’ll com­plete the solu­tion side lat­er dur­ing solu­tion design.

On the left-hand side, write down the chal­lenges (pains) that your tar­get group faces and which improve­ments will help them. On the right-hand side (cir­cle), write which solu­tions your impact start­up offers to sup­port the tar­get group. This lets you clear­ly match your solu­tions to your audience’s needs – and check whether you’re actu­al­ly adding val­ue.

Next chap­ter: Solu­tion design

You’ve clear­ly defined the social prob­lem, iden­ti­fied its root caus­es, and have ana­lyzed the effects.

You also have a sol­id under­stand­ing of your tar­get group’s needs and chal­lenges – and a per­sona or rep­re­sen­ta­tive pro­file to work with. If all of that checks out, you’re ready to move on to solu­tion design.