I was thumbing through the net recently and came about a statistic that says 90% of new online businesses pack up in their first 6 months.
Having been through the journey myself, I couldn’t find it so difficult to believe, as it is quite easy to tell why internet businesses hardly triumph.
I have come up with some points based on personal perspective, and I believe this should help you understand some reasons why your internet business will never succeed.
10 REASONS WHY ONLINE BUSINESSES FAIL
#1 LACK OF COMMITMENT: Probably due to the fact that most internet businesses require little capital, you give it lesser attention when compared to your offline business.
#2 LACK OF ACTION: You simply don’t take any action, maybe expecting some auto-pilot money making system. Or if you do take an action at all, because you’re new to online business, your actions aren’t proportional to your business so you waste a lot of time.
#3 POOR FINANCIAL MANIPULATIONS: So many start-up e-businesses simply spend the fantasy profit even before they earn it. You need to understand that you have to crawl before you can walk and then take small, baby steps.
#4. POOR PLANNING: Some people get started with trending internet business opportunities without planning well enough for the financial, emotional, mental and physical implications of the internet business. They probably didn’t save enough money so they run out of funds or didn’t do enough research so they run out of ideas very quickly with no plan of how to get back on track. This can never give birth to a successful internet business.
#5. LACK OF FOCUS: You probably plan on promoting your business on Instagram and Facebook but instead of focusing on your aim, you spend the whole day on the platforms browsing aimlessly through different profiles or comedy skits.
#6. NO EXIT STRATEGY FOR INVESTORS: It’s no news that new businesses, dot-com businesses in this case, always seek for investors to finance the early days. The business might be of great and unique concept, but investors might decline the offer due to no clearly stated exit strategy. An exit strategy is how the investors will get their money back, and when. There are several ways to go about this, just take your time and draft your plan.
#7 UNREALISTIC HIGH EXPECTATIONS: Maybe you just want to make millions over the night? It should be well noted that life isn’t as easy as you might think. It takes good work to make good money. So when starting an internet business, take it easy with the fantasy. This doesn’t mean you shouldn’t believe in yourself, but don’t expect millions in a blink. This way, it’s always a win-win situation.
#8 INVISIBILITY: Because it’s an internet business doesn’t mean you should hide behind your PC screen all day. Go out and tell others about it, they might give you great ideas, or better still, patronize you.
#9 WANTING TO DO IT ALL ALONE: You try to do it all alone, without the help of others. You decide not to hire professionals but instead try to figure out every little detail on your own. You spend hours daily wasting time on non-money making tasks like fixing annoying website CSS errors or fishing out spam traps out of your email lists. You end up frustrated, overwhelmed and lost. You then realize there is a very long road ahead that you don’t think you are prepared for, then you turn back.
#10 LITTLE INTERNET KNOWLEDGE: You have little or no idea about important factors for internet businesses like SEO, Web Design. So you end up committing all into the unsafe hands of some so-called experts who end up screwing everything up for you. This way, you will never make money online.
The worst part about failed internet businesses is that they could have been successful, maybe not as easy as the founder thought but still profitable nonetheless.
To the last bullet, owning an internet business is tough, mentally and emotionally, especially when the outcome in the first few months are inconsistent and discouraging. But believe me, you can do it. Always learn from your mistakes, re-strategize and try new approaches.
Don’t forget to share this.