SMEs’ hidden corner: from the expert’s perspective, Mind Connector talked and interviewed more than 400 business owners and came up with 10 problems that SME business owners often encounter
From real estate to coffee, from construction to clean food, or from technology to education – the “cross-industry” trend is blooming in the investment and startup world. But many deals end up running out of steam. The reason? Because there is a gap between the belief that “having mastered this field will be successful in other fields” and the reality of the market.
Problem 1: Absolute confidence in the product
Many SME (Small and Medium Enterprises) business owners assert: “No one understands the product better than me”. But customers are the ones who decide whether the product is accepted or not. In fact, many products that “proud to be unique” soon fall into a state of stagnation because they do not meet real demand.
Problem 2: Ignoring Market Research
For small and medium-sized business owners – SMEs: market research is considered “theoretical” or “expensive”. Many people rely only on personal experience to speculate on customer behavior. This is a fundamental mistake: without data, all other decisions are just luck.
Problem 3: Equating “good product” with “success”
A good product is necessary, but not sufficient. The market competes on an ecosystem of experiences, services, and brand trust – not just quality.
Problem 4: Branding leapfrogs
Many investors consider branding to be “beautiful packaging” or “impressive logos”. In fact, branding is how a business positions itself in the minds of customers – if not clearly defined, it will get lost in communication.
Problem 5: Believe in the advertising “magic wand”
A common mindset: hiring KOLs, making TikTok, running ads… will sell products. But advertising is only effective when built on a clear content strategy and positioning. There is no “magic wand” that can turn an unknown brand into a success after just a few clips.
Problem 6: Bringing old industry thinking to new industries
A construction contractor may be good at managing projects, but when entering the F&B industry, old “management formulas” can easily backfire. Each industry has its own characteristics, and conservatism often makes businesses pay the price.
Problem 7: Lack of long-term budget planning
“Do it first, then think later” is a familiar mentality. But new markets require systematic investment, especially in marketing, customer research, and building distribution channels. If resources are not prepared, businesses can easily fall into the situation of “running out of capital before they can grow”.
Problem 8: Trying to Do It All
Many business owners say: “No one does it better than me”. The result: production, sales, and communication at the same time. When expanding, the model becomes chaotic and cannot be decentralized.
Problem 9: Short-term pursuit
Following the trend, looking for a quick way to recover capital. But the market is not a 100m race, but a marathon – where long-term strategy determines who stays.
Problem 10: Underestimating the human factor
Technology, capital, and products are all important, but the team is the core. A business in a different industry that wants to survive must invest in people who know how to play by the “rules” of the new industry.
Conclusion
“Going out of business” does not mean failure – if you are prepared. On the contrary, entrepreneurs who know how to humbly learn, listen to the market, invest in their brand and team can completely turn risks into opportunities. The question is: do they have enough patience to stay on the right path?
