This week, I had the opportunity to catch up with an entrepreneur who has an idea-stage company. He and his cofounders have built an MVP and are now looking to raise money from investors and acquire customers. When a seasoned entrepreneur and I chatted with him, both of us zeroed in on a material issue: he couldn’t quickly and concisely articulate the problem his product solves.

We brought this to his attention, and he agreed that he and his other cofounders need to get specific about the problem. When I talked to him a few days later, they’d spent significant time debating the point. He presented the new problem statement to me. It was better, but still not clear. They’re back working on it again.

A business exists to solve a problem for customers. If the solution is good, it creates value for customers by resolving their problem and the customers pay the business for the value it created. It’s that simple.

If a business isn’t clear on what problem it’s solving, customers won’t be clear on how the business can help them. They’re less likely to buy.

My point is that clarifying the problem is a crucial step. The problem is the entire reason the business exists. It’s the foundation of the business. Without clarity about the problem, the business is built on a weak foundation and everything about building the company becomes significantly harder (it was never going to be easy).

If you can’t articulate the problem you’re solving in a way anyone can understand—in one sentence—ask yourself, What problem am I really solving?