The basic statistics
is that half of all the small businesses fail
(that includes online businesses) after five years. Moreover, 90% of online businesses fail
. That sounds pretty discouraging. However, you can avoid such situations if you follow some simple rules. Here are seven reasons why your online business isn't successful.
1 You Choose the Wrong Reasons
The first reason why your online business
may fail is that you chose the wrong reasons to start it. If you think that you can make a lot of money
with it very quickly, think again. Online business is not a way to get rich fast and you will have to dedicate a lot of time and effort just like with any other business.
If you believe that you are truly serious about starting an online business, get your priorities straight and ask yourself such questions:
- Are you passionate about your business?
- Are you sure there is demand on the market?
- Are you going to be patient and determined?
- Are you willing to learn from your mistakes?
- Are you ready to take on the responsibility?
If you answered yes to all of those, you are probably ready to start an online business that will be successful no matter what.
2 Low Entry Barrier - More Competition
One of the biggest challenges
that many beginners forget about is the low entry barrier
and the consequent higher competition. You are competing against people from all around the world for that small share of the market.
There will be many people who, just like you, decided that it would be a great idea to start their online business
and get rich with it. Even if they quit after some time realizing that it's not for them, they will still be competing against while they are at it.
This is something you can't really change and the only thing you can do is simply keep pushing and keep working towards your goal.
You have to be ready for all the hardships you will encounter on your way.
3 You Don't Treat It like A Business
Too many beginner entrepreneurs think that this is a fun hobby rather than a serious business
, like bitcoin exchange business
. That is a common misconception you must avoid at all cost. You should treat your online business like a real business in order for it to be successful.
Invest in your business properly. That means both your time and money. It's understandable if you are on a small budget
and simply can't afford to spend a lot, but you should at least increase the amount you invest with time.
Online business is not a cheap way to make money.
Sure, it may be cheaper than other ways to earn money as an entrepreneur, but it's still not the one where you don't invest anything. Remember that if you really want to succeed, you have to be willing to make sacrifices.
Try to remind yourself regularly that the success or failure of your business
entirely depends on you. Having clear goals that motivate and inspire you will allow you to stay focused on your final aim.
4 Too Much Advice from Too Many People
is crucial for you to understand how to make your online business function properly. However, getting too much advice from too many people can be extremely confusing and may even throw you off track.
In order not to get lost in the sea of information you receive, follow these tips:
- Do Your Research: Never underestimate the power of research. Find all the information online or in books. Then, carefully review and analyze it to detect which tips should be followed and which ones are irrelevant.
- Avoid Amateurs: Stop getting advice from inexperienced people who know no more than you do or pretend that they are experts. This includes your friends and family. They probably mean well when they give you their advice, but they can't possibly know everything, especially if they never actually had an online business.
- Enroll in Courses: This one is optional, but enrolling in courses can be the perfect way to learn and perfect the skills you need for starting a successful online business. Besides, you may find that professionals teaching the courses can give you a lot of invaluable advice.
5 Poor Management and No Planning
Yet another reason why your online business
may fail is poor management and no planning. Stop making these simple mistakes! They usually happen if you don't put in enough effort and aren't dedicated enough. But there's still more than that.
Before even starting your online business, you should create a comprehensive plan
. Here are the details you should think through:
- Background: Describe your business as well as your vision, goals, and mission.
- Market Analysis: Analyze the market and see whether there is demand for your product or service.
- Competition Analysis: In addition to the market, analyze your competition and determine who your key competitors are.
- Potential Challenges: Describe the potential challenges you will be facing and how you are planning to solve them.
- Workforce Needs: Think of your workforce needs and outline them here.
- Finances & Budgeting: This includes such things as an income statement, capital equipment and supply list, cash flow analysis, balance sheet, sales and expense forecast, and how you will be budgeting.
- Marketing Campaign: Everything from marketing to advertising should be clearly described in your marketing campaign section.
Once you have a business plan,
you will be able to successfully launch your online business. After that, start focusing on managing your business properly and keep up with your plan.
6 Sticking To Only One Marketing Channel
Of course, the best thing you can do is first stick to one marketing channel
and master it as best you can. However, you should diversify your ecommerce marketing strategy
and start using other channels if you want to succeed.
It is important that you decide on your primary marketing channel
early on. Social media platforms are perfect for anyone looking to start an online business and find their audience. After that, you may want to use email marketing and content marketing (on your website or blog) to get even more traffic and leads that will convert eventually. By the way, companies before creation of sports betting websites
prepare strong content marketing strategies. By the way, it's a good idea to get accounts on different social media platforms with time.
Lack of Responsibility and Understanding
Last but not least, the lack of responsibility and understanding can lead to terrible consequences.
Firstly, understand that you can't make a lot of money really fast. Second, accept the fact that little effort will not save you. Third, realize that you are now responsible for your online business.
You should have the right mindset going in so that you don't get discouraged along the way. It may take you months, even years to see your business finally setting off. It's sad but it's true. And the faster you realize it, the better for you and your online business.
All in all, these are not all the reasons why your business may fail, but they are the most popular ones. Avoid getting into a bad situation by avoiding such mistakes and following the advice in this article.
Cynthia Young loves taking every opportunity to share her knowledge with others. Along with digital marketing, Cynthia is also passionate about personal growth and wellness. When she isn’t writing, she can be found hiking with her dog, cooking Thai cuisine, and enjoying hi-tech thrillers. Also she works in the thewordpoint.com