Every few weeks, someone on Twitter or LinkedIn brings up the same old question. Should every startup be built around solving a problem? The idea sounds reasonable. Solve a problem. Get paid for it. 

But the reality is more complicated. Some startups that solve real-world issues struggle, while others with no clear problem rake in millions.

Is it truly essential to identify and fix something broken to build something profitable? Or is there another path to success?

This article is not a deep dive into business theory. It is a reflection. 

After speaking with hundreds of startup founders from different parts of the world, I have started to notice a pattern. Not every successful company began by addressing a pain point. And not every founder followed a problem-solution checklist.

Let us look at what really matters when it comes to building a profitable startup.

Problem First, Product Next

For years, the dominant wisdom in the startup world has been simple. If you want to build something that lasts, start by solving a real problem. This idea forms the backbone of most startup advice and investor pitch decks. A problem is seen as the spark. The product is the solution. Everything else follows.

In fact, according to a report, 42% of startups fail because there is no market need for what they offer, making “lack of demand” the single most common reason for startup failure. 

This approach is rooted in logic. When there is a clear pain point, there is often a clear demand. People are more willing to pay for something that removes friction from their lives. 

That is where concepts like product market fit come in. If your solution fits a real need in the market, your chances of growth and profitability go up.

The Airbnb story is a textbook example. In 2007, founders Brian Chesky and Joe Gebbia couldn’t afford their San Francisco rent, so they put air mattresses in their living room and offered accommodation to attendees of a design conference when hotels were fully booked.

This small fix for a real, time-sensitive problem-finding a place to stay when hotels were unavailable-sparked what became a global platform for short-term rentals. Their solution was born from necessity and validated by immediate demand.

As Brian Chesky, Airbnb co-founder, said: 

"If we tried to think of a good idea, we wouldn’t have been able to think of a good idea. You just have to find the solution for a problem in your own life."

Zepto, in India, is another example. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, Zepto was born out of the frustration of waiting days for groceries during the pandemic, when traditional delivery services were overwhelmed. The duo built a network of “dark stores”-small, hyperlocal warehouses to deliver groceries in under 10 minutes. 

This focus on a clear, urgent problem paid off. Zepto became India’s first unicorn of 2023, raising $200 million at a $1.4 billion valuation, and by mid-2024, its valuation soared to $3.6 billion.

Aadit Palicha, co-founder of Zepto, said in an interview:

“We saw a clear pain point: people were waiting days for essentials during the pandemic. Our mission was to make grocery delivery as fast as ordering a cab. That urgency is what drove our growth.”

But solving a real problem does not always guarantee success. 

Take Dunzo, for instance. The hyperlocal delivery startup tackled a very real urban issue: last-mile errands and convenience. It was fast, intuitive, and genuinely useful.

Yet despite its early promise and user love, Dunzo struggled with operational costs, scaling challenges, and a cash burn that couldn’t keep pace with revenues. It eventually spiraled into layoffs, funding crunches, and a shrinking presence in key cities.

Building Startups Without Fixing Anything

Not every startup begins with a problem to solve. Some start with a desire to make money. Others aim to create new habits or cultural shifts. In many cases, they do not fix anything broken. Instead, they build on what already exists and try to do it better.

There is a saying in the startup world. There is nothing new under the sun, but everything under the sun can be made better. Many founders take this to heart. They pick an existing idea or business model and build on top of it. The road is already laid. The challenge is to take market share from those already on it.

For these startups, the main hurdle is not solving a problem. It is acquiring users. They need to convince people to switch from what they are already using. This requires sharp execution, strong marketing, and often, a better user experience.

Consider the Quick Service Restaurant (QSR) sector. The global QSR market was valued at $265.86 billion in 2024 and is projected to reach $381.79 billion by 2033, growing at a CAGR of 3.90% (2025–2033). And in this crowded space, new brands don’t necessarily solve a new problem. They offer a twist on the familiar. 

For example, brands like Wow! Momo in India or Shake Shack in the US didn’t invent momos or burgers; they offered better quality, a fresher experience, or a unique brand identity. Their success comes from execution and marketing, not from fixing a broken market.

Think about snacking brands. The world does not need another chip or energy bar. Yet new snack startups launch every month with a better crunch or cleaner label. In the energy drink segment, brands like Celsius and Prime have exploded in popularity not by solving a problem but by selling lifestyle and aspiration. 

The same goes for some generative AI tools. Many AI startups today are not solving new problems. They are repackaging existing capabilities into niche workflows. For example, AI tools that summarize meeting notes or rewrite emails are not essential. But they appeal to our growing desire to save time and appear efficient.

But then again, we can’t ignore the repercussions. Copying an existing idea without real differentiation can backfire. If a product feels like a weaker version of something people already trust, it struggles to stick. Execution-only models need a distinct edge—faster delivery, cleaner branding, better convenience, or simply stronger storytelling.

What Should Founders Focus On

Before jumping in, ask yourself a simple but essential question. Why do you want to start a company? Is it because you see a problem that genuinely needs fixing? Or is it the idea of building something profitable that excites you?

Your answer shapes your entire journey.

If you're driven by the urge to solve a problem, take time to deeply understand your users. Go beyond what they say and observe how they behave. Often, the most valuable insights come from quiet patterns rather than loud complaints. Build patiently, listen closely, and iterate based on real feedback. In this path, empathy and persistence matter more than speed.

But if your goal is to build a sustainable, revenue-first business, start by studying existing models that already work. Your focus should be on doing it better, faster, or in a way that feels fresh to your audience. Here, execution is your main advantage. Success comes from refining distribution, improving user experience, and communicating your edge clearly.

Both paths are valid. Both are hard. What matters is not whether you start with a noble mission or a money-making idea. What matters is whether you can deliver something people will pay for, use often, and talk about.

Edited by Harshajit Sarmah