How to Identify Hidden Industry Challenges

🚨 Is Focusing Only on Revenue the Wrong Strategy? 🚨 Everyone talks about revenue and profit as the golden metrics. 📊 But here's the truth: When it comes to building a sellable business, focusing only on these numbers might lead you straight into a trap. ⚠️ You might be thinking, “Wait, isn’t that what potential buyers want?” Yes… and no. Sure, buyers care about numbers. But they’re also looking beyond the surface. 🌊 Here are some hidden challenges that can make your business unsellable, even with stellar financials: 👉 Key Person Dependency: If the business crumbles without you or one key employee, that’s a massive red flag 🚩. Buyers are risk-averse. They want a business that runs like a well-oiled machine, with and ideally without you needing to spin those plates 👉 Customer Concentration: If a single customer makes up more than 20% of your revenue, you're vulnerable. A report by IBISWorld shows that businesses with diversified customer bases sell at higher multiples. Don’t let one client hold all the power 💼. 👉 Scalable Systems: Buyers want to see that your business can grow beyond its current capacity without collapsing under the weight. Do you have processes documented? Automated? Can the operations handle double the demand? 🔄 👉 Cultural Alignment: No one talks about culture enough in sales, but misaligned cultures can tank deals fast. Think of it like a marriage 💍—if the buyer’s values clash with your team’s, the honeymoon will be short-lived. Identifying these issues isn't just about checking off a list. Ask yourself: "If I took a month off (really off, yes, I mean gone, really gone), would the business still thrive?" Are there processes and systems anyone could step into, or is it chaos without you? It’s about building something bigger than you. 🏗️ 🔍 Look deeper than your P&L. Observe where the dependencies lie. Talk to your advisors about how to diversify risk. And most importantly, plan ahead. Are you building a business that could thrive without you in it? 🤔 Drop your thoughts in the comments below—what's the hidden challenge you're working on in your business right now? 👇

Here’s something I’ve learned after founding multiple startups (including HOPPR ) and tackling healthcare’s toughest challenges: you can’t fix what you don’t fully understand. It’s not enough to notice a gap—you need to see the problem beneath the problem. Why Deep Problem Understanding Matters 1. It Uncovers Hidden Needs Most incumbents build for their current market, leaving entire groups—often called “non-consumers”—frustrated or underserved. The real opportunity lies in solving pain points nobody else wants to touch. 2. It Guides Sustainable Innovation Building on shaky assumptions is a recipe for constant pivots. When you truly grasp the root cause, your product roadmap becomes a compass—pointing you straight toward what customers really need. 3. It Future-Proofs Your Business Industries evolve fast. If you’re crystal-clear on the why behind a problem, you can adapt solutions over time—staying ahead of disruptions rather than becoming a victim of them. My Take As a radiologist-turned-entrepreneur, I’ve seen firsthand how “obvious solutions” can miss the mark if they’re not grounded in a deep understanding of users’ realities. At HOPPR, we’ve made it our mission to spend time with the very people who will use our AI models and our AI platform —so we can build solutions that genuinely improve outcomes. How to Deep-Dive into Problems 1. Ask “Why?” … Again Whenever a teammate or customer says, “We need X,” dig deeper: “Why do you need that? And why is that important?” Keep going until you hit the emotional or systemic root cause. 2. Go Beyond Your Usual Suspects Talk to the so-called “wrong” customers—people on the fringes or those turned away by incumbents. That’s often where you’ll find the insights that spark major disruption. 3. Prototype Fast, Iterate Faster Even the best market research won’t give all the answers. Build a testable solution quickly, gather feedback, and refine based on real-world usage. Speed of learning trumps perfection. Pro Tip: If you catch yourself making assumptions without concrete insight, pause. Get on a call with a user or run a mini-experiment to verify you’re fixing the right problem. Your Turn: What’s one problem in your industry that everyone’s overlooking—or simplifying? Drop your thoughts below. You might just uncover the spark for your next big breakthrough. #DeepProblemSolving #InnovatorsDilemma #StartupLessons

The framework that works in warfare can come in handy to CEOs of D2C brands too. Ever heard of the Known-Unknown Matrix? It might be the most powerful tool you're not using to identify profit-draining inefficiencies in your business. The framework breaks problems into four quadrants: - Known Knowns: What we know we know (high awareness, high predictability) - Known Unknowns: What we know we don't know (high awareness, low predictability) - Unknown Knowns: What we don't realize we know (low awareness, high predictability) - Unknown Unknowns: What we don't know we don't know (low awareness, low predictability) I've applied this to key areas where costs hide in plain sight: For SHIPPING: Are carriers charging hidden fees buried in bulk invoices? Are multiple shipping services offering identical services at different rates? For CUSTOMER CHURN: Which profitable segments are silently disappearing without formal cancellations? What complaint patterns never reach leadership? For INVENTORY: Is warehouse mismanagement creating "ghost stock" that exists in your system but not reality? For MARKETING: Is your attribution model favouring last-click while undervaluing assisted conversions? Unmasking these hidden costs requires more than basic analytics—it demands a structured approach to finding what you don't know you don't know. Which quadrant deserves your immediate attention? #BusinessStrategy

You're not scratching the surface and you're getting superficial solutions. If you’re solving surface-level problems, you’ll get surface-level results. Real issues hide beneath assumptions,  habits, and “this is how we’ve always done it.” Real solutions rise when you stop masking symptoms and start diagnosing the root cause. 1) 𝗔𝘀𝗸 𝗪𝗵𝘆 - 5 𝘅'𝘀 Reveals what’s lurking under the surface. Example: Sales are down → Why? Marketing leads are low → Why? Budget cuts reduced ad spend → Why? Revenue didn’t meet targets → Why? Customer churn is high → Aha! 2) 𝗖𝗵𝗮𝗹𝗹𝗲𝗻𝗴𝗲 𝗔𝘀𝘀𝘂𝗺𝗽𝘁𝗶𝗼𝗻𝘀 What if the “obvious” problem isn’t the real problem? Take a step back and ask: “What’s missing from this picture?” 3) 𝗧𝗮𝗽 𝗶𝗻𝘁𝗼 𝗖𝘂𝗿𝗶𝗼𝘀𝗶𝘁𝘆 Experts stick to what they know. Curious minds find new opportunities. Innovation is nestled  in the questions we’re afraid to ask. Pick one lingering challenge. ► Dig deeper ► Explore other possibilities ► Ask thought-provoking questions ► Brainstorm different ways of solving 𝗗𝗮𝗿𝗲 𝘁𝗼 𝘁𝗵𝗶𝗻𝗸 𝗱𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁𝗹𝘆 𝗮𝗻𝗱 𝗮𝘀𝗸 𝘄𝗶𝘁𝗵 𝗴𝗲𝗻𝘂𝗶𝗻𝗲 𝗰𝘂𝗿𝗶𝗼𝘀𝗶𝘁𝘆. 𝗪𝗵𝗮𝘁’𝘀 𝗮 𝗽𝗿𝗼𝗯𝗹𝗲𝗺 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀 𝘁𝗵𝗮𝘁 𝗰𝗼𝘂𝗹𝗱 𝘂𝘀𝗲 𝗮 𝗳𝗿𝗲𝘀𝗵 𝘀𝗲𝘁 𝗼𝗳 𝗾𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀?

𝐒𝐭𝐨𝐩 𝐂𝐡𝐚𝐬𝐢𝐧𝐠 𝐒𝐲𝐦𝐩𝐭𝐨𝐦𝐬: 𝐔𝐧𝐞𝐚𝐫𝐭𝐡 𝐭𝐡𝐞 𝐑𝐨𝐨𝐭 𝐂𝐚𝐮𝐬𝐞𝐬 𝐨𝐟 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬! Tired of being a fire-fighter in your own business? It's frustrating when you're constantly extinguishing crises without ever identifying their origin. But remember, overlooking the root causes equates to recurring problems and spiraling expenses. 📈💰 Here's a strategic approach to addressing these challenges at their core: 1️⃣ Embrace Root Cause Analysis Techniques: Leverage tools like the "5 Whys" or the "Fishbone Diagram" for effective problem-solving. 2️⃣ Emphasize Systems Thinking: Recognize your business as an interconnected system where issues stem from interactions among its various components. 3️⃣ Seek External Guidance: An unbiased outside consultant can help spotlight latent issues that may be hidden in plain sight. 4️⃣ Schedule Regular Check-ups: Keep an eye on your processes, operations, and performance regularly to preempt potential challenges before they amplify. Addressing these root causes paves the way for substantial cost savings, streamlined operations, and enhanced productivity in your business. What strategy have you used to find root causes in your business? Share your insights below. ⬇️ ➖➖➖ Over the past 15 years, I have worked 1-on-1 with 1,000+ business owners and taught tens of thousands of people about business. My experience includes serving as a Navy Officer, managing businesses, graduating from MIT, earning an MBA from NYU, and Achieving the CFA Designation. My Mission of “Helping 1,000,008 business owners by 2028 to sell more, make more, and get financing when they need it.” My Vision is to “Create the Ultimate business ecosystem for entrepreneurs.” ***** 👉 Feel free to visit my website to learn more about The Masterpreneur Playbook... https://lnkd.in/ebDibPVc #entrepreneurship #marketing #strategy #leadership #smallbusiness #success