I just watched a video where Simon Squibb sat down with Patrick Bet-David, and they broke down a game-changing truth about business success. It’s not about working harder than everyone else—it’s about solving bigger problems.
They analyzed companies like Apple, Amazon, and Tesla, and one thing stood out: the size of the problem they chose to tackle directly influenced their trillion-dollar valuations. Smaller companies stay small because they focus on small problems.
Simon and Patrick shared insights from their journeys, including building and selling a $250 million company. The key takeaway? Success isn’t just about talent, hard work, or flawless execution—though those help. The real difference is in *choosing* to take on challenges that impact millions.
The Evolution of Problem-Solving at Scale
Consider Amazon’s journey. They began by solving a relatively modest problem: making it easier to buy books online. As they succeeded, they recognized bigger problems to solve – expanding into general retail, then revolutionizing cloud computing through AWS. Each evolution tackled increasingly significant challenges, creating exponentially more value.
This pattern repeats across every major tech success story. Tesla didn’t just aim to build electric cars – they set out to transform global transportation and energy systems. Apple didn’t stop at making computers; they reimagined how humans interact with technology across multiple devices and platforms.
The Foundation: Building Your Business Machine
Before tackling world-changing problems, you need to build a solid business foundation. From my experience, this requires mastering several critical elements:
- Systems and processes that can scale
- A strong talent recruitment strategy
- Clear communication frameworks for different personality types
- Technology infrastructure that enables growth
When building my insurance company, implementing systematic approaches transformed us from a personality-driven business to a scalable enterprise. We created comprehensive manuals covering everything from sales processes to client communication, making our success repeatable and teachable.
The Power of Strategic Focus
Success requires ruthless prioritization. This means eliminating distractions that consume mental bandwidth. For me, this included:
- Stopping all radio consumption since 2003
- Avoiding property investments outside the business
- Eliminating entertainment that doesn’t serve growth
- Cutting ties with people who don’t align with the vision
This laser focus allows you to direct all your energy toward solving bigger problems. It’s not about working more hours – it’s about applying those hours to challenges that create exponential value.
Building the Right Team
To solve massive problems, you need exceptional people. When recruiting, focus on individuals who:
- Demonstrate reliability as their primary quality
- Bring complementary skills to your weaknesses
- Share your vision for tackling big challenges
- Show a track record of continuous improvement
The most valuable team members aren’t necessarily the most talented – they’re the ones who consistently deliver and grow with the organization. This reliability factor has proven to be the number one predictor of who eventually rises to CEO positions.
The Long Game Strategy
Building a truly significant business requires a long-term mindset. Set a 20-40 year horizon for your vision. This extended timeframe allows you to tackle truly transformative problems rather than seeking quick wins.
When presenting this vision to your team, make it clear that you’re playing the long game. This attracts people who want to be part of something bigger than themselves and helps filter out those looking for quick exits.
Frequently Asked Questions
Q: How do you identify which big problems to solve?
Start by examining inefficiencies in your current market. Look for pain points that affect entire industries rather than individual companies. Study market leaders and identify gaps in their offerings that could be transformed into opportunities.
Q: What if you don’t have the resources to tackle big problems initially?
Begin with smaller, manageable problems but always keep the bigger vision in mind. Use each success as a stepping stone to tackle progressively larger challenges. Amazon started with books before expanding to become the everything store.
Q: How important is timing when solving big problems?
Timing is crucial but not everything. The key is to ensure the market is ready for your solution while building the infrastructure to scale when opportunity strikes. Tesla, for instance, began when electric vehicles weren’t mainstream but built the foundation for when the market was ready.
Q: Should every business aim to become a trillion-dollar company?
The goal isn’t necessarily reaching a specific valuation – it’s about thinking bigger about the problems you can solve. This mindset attracts better talent, creates more opportunities, and ultimately leads to greater impact, regardless of final company size.
Q: How do you maintain focus on big problems while managing day-to-day operations?
Create systems and processes that allow the business to run efficiently while dedicating specific time to strategic thinking about bigger challenges. Build a strong leadership team that can manage operations while you focus on larger opportunities.
