10 Reasons why Online Entrepreneurs Fail

10 Reasons Why Online Entrepreneurs Fail

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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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Thanks for reading and I hope that your enjoyed this little journey with me and picked up a few gems along the way.
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Vinton Samms.

12 thoughts on “10 Reasons why Online Entrepreneurs Fail

  1. Hi Vinton… Good insights! All of these reasons make sense, along with the other one that seems to be my biggest… to take action! Taking action in the first place, and then being consistent about it. Thanks for sharing!

  2. Great article Vinton

    I agree with all 10 points particularly the “no plan” Most people don’t plan to fail they just “fail to Plan”

    Mentors should solve that problem as the first thing a good mentor will do is get you a plan for success.

    Certainly critical!

    Sure hope read this carefully and really take a lot of your great advice to heart!

    • Hi Mary,
      Thanks kindly for the feedback on the post. I do agree that most persons fail because they fail to plan and because they are operating online do not see the value in doing so. As I have pointed out in the post, this is a big mistake and they should treat the online business as a business and not a hobby. I really do hope they will find this valuable.
      All the best
      Vinton

  3. Hi Vinton,

    I think another reason people fail is trying to reinvent the wheel and over-complicating issues.

    I’ve just been reflecting that my “online business” has built very successfully off-line for 7 years – so why I am struggling to try and take it ONLINE (with appalling conversion rates from uninterested traffic) when probably less than .01% of the local businesses within 10 miles of me have heard of it?

    Why not try the methods that have worked for 7 years? They seem much simpler than finding online customers.

    Which I guess is the same as saying that finding good quality traffic that converts is my biggest challenge.

    Joy

    • Hi Joy,
      Thanks for your perspective. Yes, many persons do complicate things more than is necessary. If you are doing better or even feel that you can do better off-line then there would be no reason to be online. The online business idea came about because of the various technologies that have evolved over the years and therefore persons felt the need to engage those persons searching for products and services online. However, it can be a very frustrating experience, especially getting persons to eye-ball your offers. There are clever ways of doing this and be successful at it but it comes with hard work and patience. Would you like to check out the traffic link I gave in the post?
      All the best.
      Vinton

  4. Hi Vinton,
    you’ve certainly hit the nail onto 10 heads there!!
    Excellent analysis of how we can fail online, and in fact, all these elements do need to be addressed for success.
    Some folks forget the customer interaction element because they are online, and just fire out sales copy to their audience… not the best way, people like to be treated as special, and I think this is a Really Important Point to get right from the start, followed by your honesty and integrity.
    Every point is important here, and I feel sure New Entrepreneurs will have a great structure to work from here 😀
    Thanks,
    ~Jacs

    • Hey Jacs,
      I value your comments highly and found these to be no less. I hope that new entrepreneurs will find this useful and yes, honesty and integrity are critical to any success on or off-line. Thank you so much!
      All the best.
      Vinton

  5. These are all important things for folks just starting an online business to be alerted to, Vinton.

    I’d especially highlight the “mentoring” item.

    I think many people fail and drop out of their business because they fail to get on board with a good coach or mentor. This is critical, especially for folks who are new, or only vaguely familiar with how to proceed with their online business. Not only can a good coach illuminate the exact processes they need to undertake, but he/she can drastically cut the amount of time, trial and error and expenses that one has to spend to achieve success.

    The truth is, if it takes too long, too many trial and error failures, and too much money… most people will quit before they give themselves a fair chance to succeed.

    Nice job in laying out all the essential elements that we need to consider, Vinton. I’m sure you email newsletter is a valuable one for folks to subscribe to.

    • Hi David,
      Thanks so much for the responses you have given for the post. I do agree with you that mentoring/coaching is vital to the success of any business particularly if the owner is new to the world of business. I hope that this will be beneficial to new online entrepreneurs.
      All the best.
      Vinton

  6. Hi Vinton,
    That was really an excellent post.
    I liked it all. But especially…
    “start an online business or you were encouraged to do so but not clear on why, how, where, when and who would be involved.
    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. ”
    Very good article. Visiting you from the PAC Rotator.

    • Hi Kathryn,
      Thanks for the comments. I really tried to make the post as valuable as possible especially for new online business persons. Thanks again for the sentiments expressed.
      Vinton

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