Building a Situation (S)

In this lesson, you'll learn how to write a compelling "Situation" statement for an investment proposal. You'll understand the importance of setting the stage by providing context and background information, helping your audience grasp the current state of affairs.

Learning Objectives

  • Define the purpose and components of a "Situation" statement.
  • Identify key facts relevant to a given investment scenario.
  • Write a concise and clear "Situation" statement.
  • Distinguish between essential and non-essential information for the "Situation".

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Lesson Content

Introduction to the Situation (S)

The "Situation" (S) is the first element in the SCQA framework. It's the foundation of your investment proposal. Think of it as painting a picture of the current state of things. It answers the question: What is the context, the background, and the existing conditions that led to this investment opportunity? It sets the scene and allows the reader to understand why the investment is needed or attractive. A good "Situation" statement is clear, concise, and focused on the relevant facts.

Key Components of a Situation

A good "Situation" typically includes these elements:

  • Context: Provides the setting and environment. (e.g., The growing popularity of online pet services...)
  • Background: Highlights the history or evolution. (e.g., Pet owners are increasingly busy and need convenient solutions...)
  • Current State: Describes the present situation. (e.g., There's a high demand for reliable, affordable pet-sitting services in the local community...)

Avoid overwhelming the reader with unnecessary details. The goal is to establish the context, not to give a full history lesson. Prioritize the most relevant information.

Examples of Effective "Situation" Statements

Let's look at some examples:

  • Lemonade Stand: "Currently, the neighborhood lacks a convenient place for kids to cool off with a refreshing drink on hot summer afternoons. The nearest store is a ten-minute walk, and kids often lack quick access to treats."
  • Pet-Sitting Business: "The local community has a growing population of busy professionals who own pets. These pet owners often struggle to find reliable and trustworthy individuals to care for their pets when they are away from home, and there is a shortage of affordable pet-sitting options."
  • Bike Repair Shop: "The city's cycling community is growing rapidly, fueled by increasing awareness of health and environmental benefits. However, there's a limited number of convenient and reliable bike repair shops in the area, leading to long wait times and frustrated cyclists."

What to Avoid in a "Situation" Statement

Avoid these common pitfalls:

  • Too much detail: Don't include every single fact. Focus on the most relevant information.
  • Jargon: Use clear, simple language that everyone can understand.
  • Overly long sentences: Keep your sentences concise and to the point.
  • Jumping to conclusions: Don't state the "Question" or "Answer" in the "Situation" stage; that comes later in the SCQA process. The "Situation" sets the scene, but doesn't solve the problem.
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