Online Business Entrepreneur Failures
Why Online Business Entrepreneur Failures? Five reasons why Online Business Entrepreneurs fail in the early stage of the business implementation.
Many people are more and more attracted to the idea of working from the comfort of their home; merely because they are bored with their everyday jobs and aspire to be their ‘'own bosses'' or they want to start a side job to make few extra bucks and better their lifestyles.
We all have seen a video or two about people who have acquired a fortune from online business entrepreneurship. Labeling online business ‘'the quickest and easiest way to get rich'', and encouraging other people to quit their job and join the fun. As appealing as this sounds, leaving your full-time job or starting a business right away isn't always a good idea.
According to statistics, 90 percent of all start-ups, online businesses will fail within the first few months. Ninety percent is an alarming number of failure, and it brings us to the questions ‘Why do so many online business entrepreneurs fail?' so ‘How can we prevent the business from failure?'
Reason 1. Too much competition
Almost everybody can start an online business, thanks to advancing technologies. Subsequently, it's getting harder to stand out as an online business entrepreneur, now that there are probably thousands of other online businesses selling the same products and using the same business model as you.
Before starting an online business, it is crucial to know your competitors: their weaknesses and their strengths. Knowing your competitors' weaknesses will help you determine what you can do better to attract customers to your store.
For example, you can make your website less complicated to use by new visitors. Install ‘'how to'' options, decorate your landing pages for better presentation. You can provide your clients with quick and effective feedback, use the live-chat feature on your website, go with lower prices if you have realized that your competitors ‘products are overpriced.
Reason 2. Lack of a well-defined business model and business goals
Any aspiring online business owner must first and foremost determine which business model he will operate within and set short or long term goals for his new business.
He needs to set his mind and know what he is striving for and these goals will be motivation to work harder. Setting realistic short-term goals for business give the owner a clear vision, and once he can, he can challenge himself to others until he realizes his long-term goals.
Before choosing an ideal business model, the future business owner must take time and do a self-inspection based on this questions:
All these questions can be answered either by reading books or participating in online communities by learning from online business experts or signing up for online classes. It may seem like a long and overwhelming process, but it's better to start prepared than seeing your business crushing only months from beginning it.
Reason 3. Lack of basic business knowledge
Basic business knowledge is a necessity to succeed in online business. It may seem easy to set up a website or an E-Commerce store, but the new owner needs to learn how to keep the business up and running.
The owner can be excited with the business generating money but ignore that there are operational fees or taxes that he needs to pay and find him, in the end, spending more than he is gaining. In other words, before starting a business, it is recommended to start business courses, learn about SEO, about sales, read as many books as you can and learn from business experts. Because once you start the business, the priorities are to keep it running and the owner may not have the time and means to learn on the go.
Reason 4. Lack of social media presence and visibility.
Marketing is a fundamental way to attract traffic to your business and social media when used in the right direction, is the way to go if you want to promote your products and gain more customers.
With apps like Twitter, Facebook, Pinterest, Instagram, it is not uncommon for people to randomly search for products or click on an ad and land on your page. It is the owner's responsibility to retain the audience, to keep his page interesting with content that matches his audience's preferences.
It is not enough to sit behind your computer's screen, but your customers need to know that you're present and assisting them during their purchase.
Reason 5. Lack of professional help and comparison
Many beginners tend to try to figure out everything on their own and neglect or don't know where to get professional help. Young Online Business entrepreneurs spend their time online comparing their business to others instead of finding new ways to develop their own business.
The internet is full of business experts who will be happy to help you build your business; you have to know the right place to go. The new business owner can learn from their experiences (chances are they have faced the problem you are having now and can offer you a solution), from their websites reviews.
This online support might be in exchange for money, but it is better to pay the price now than losing the whole business. You can Check this community of Online Entrepreneurs for example.
How can you prevent your online business from failure?
Our generation is a get-rich-quick one, and sometimes, with the online business success myth as presented by the internet.
We forget that in every business, to generate revenue and be successful We must put in hard work and determination. To increase the possibility of success, Online Business Entrepreneurs have to:
1. Have the right mindset and expect hard work:
Many people start an online business following the get-rich-quick myth, and they end up putting little or no effort into their business.
2. Have a business plan and set goals:
Set up a business model that suits your aspirations, know your customers and establish long term goals for motivation.
3. Be unique and original:
the uniqueness or originality of your brand is what is going to help you stand out in a multitude of competitors. Stay true to your passion, avoid comparison as it may crush your confidence and cause you to make bad decisions.
4. Be a constant learner:
Never be afraid to ask for assistance, take your time and take classes, read books before starting an online business.