10 Reasons Why Online Entrepreneurs Fail
Many persons go online searching for business opportunities every day. This is so because jobs are hard to come by occasioned by economic uncertainties in many economies across the world. Another reason for wanting to start a business or become an online entrepreneur is the ability to be financially independent. This does not matter whether the prospective business owner is fully employed or not, many do this as a part time activity. Others do so as full time activity.
Various business models are used to make money online, chiefly Affiliate Marketing; others produce and sell their own products or services. Whatever the model used, one thing is certain only a very small percentage really make any money, the vast majority have nothing to show for their efforts. Many statistics are available to support this.
I have listed below 10 reasons why this is so and have made suggestions for improvement. Hopefully the new entrepreneur and even the existing one might learn to avoid these mistakes. Follow me closely now!
1 NO BUSINESS PLAN:
Knowing that you want to start an online business or you were encouraged to do so but not clear on why, how, where, when and who would be involved in this journey but starting it anyway. In addition to this, poor financial planning or mismanagement resulting in over or under charging for products and services is also a common reason. A well thought-out business plan will significantly help in this process to avoid costly mistakes and problems. A good business plan is the blueprint of how likely you will be able to succeed or fail. Understand? To get an idea of a good business plan, go here . Check this for general information
2 LOW SELF-CONFIDENCE:
Not enough confidence in your abilities and low self-confidence in your goods and services does create fear and doubt in taking the right action and eventually destroys the dream of many online entrepreneurs. Be confident in whatever you are doing and allow this confidence to come to the fore. Start with business associates, friends and family. Seeing the picture now?
3 POOR OR NO MARKET RESEARCH:
Not doing the relevant research to ensure that there is a need for your product or service often results in wrong choices of these. Jumping from one idea to another without fully developing any often leads to failure. Research the need for your idea using AMAZON, GOOGLE, CLICKBANK, JVZOO and many others. These platforms, especially AMAZON, can give you a very good idea of what is being bought. You can duplicate (NOT COPY) which would be a shorter process or come up with a similar product or service but this is for another post.
4 KNOWING WHO TO TRUST:
Some entrepreneurs have not fully developed the habit of approaching business from a legal perspective. The thinking is that it does not matter online. However, because you are setting up a business and not a hobby it does matter. You want to put in your disclaimer(s) for example. Not having binding contracts in place and operating from word of mouth or gentleman’s agreement has caused many owners to lose their businesses. Have the paper work supporting everything that you do including every agreement that you will make. There are no friends in business. Remember this always!
5 NO INNOVATION:
Doing the same thing over and over expecting to get different results is madness. Not being innovative and fear of implementing new ideas or to make new contacts with new resources will surely kill your business on or offline.
6 POOR CUSTOMER SERVICE:
Many entrepreneurs fail to realize that businesses need people to survive, they do not run themselves but rely on people who are your customers! Make no mistake; many businesses fail to earn an income because the owners have poor or no interpersonal skills. In this case the customers give those poor recommendations. If you have this problem, outsource this activity or hire someone you know to be a good ‘people’ person. Hope I have not lost you? Let’s continue.
7 NO MENTORS:
Some online business persons decided that they don’t need any mentors and go it alone without the benefit of experience. Others refuse to take the advice given by their mentors. Big mistake, huge. Remember ‘mentors’ are business persons who have been there through the trials and failures. Learn from them.
8 NO TRAFFIC:
Your products and services need to be seen by people. If no one knows about them then nothing will happen. You therefore need to advertise. In doing so you are sending people to eye-ball your stuff. This can be done using social media, traffic exchanges and SEO but most of the times the persons viewing your products and services are none-responsive (don’t take any action). You may want to try using paid advertising as well which is more direct, sending persons who are interested in what you have to offer.
CHECK OUT THIS TRAFFIC SOURCE
9 LACK OF RESILIENCE:
Too many online entrepreneurs, especially start-ups, give up at the first sign of a challenge. Some believe they have a right to help or resources without doing or sacrificing anything to bring about success. Running a business requires hard work, dedication, focused attention and long unsociable hours. Get it? This is what success is made of.
10 LACK OF HONESTY & OR INTEGRITY:
Doing what you proposed to do is the key to building trust and establish long-lasting relationships. Do not focus on the money, instead, concentrate on providing high quality service and value to the customers. Your goods and services must be of a high standard to make them want to come back to you. Many online business owners did not set out to be dishonest but with unclear plans and unexpected circumstances, many of them fall into situations which were not properly handled and ruined their careers as entrepreneurs.
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