Most of us personally know or heard about someone that made it in the online world through a startup that ended up being highly successful. Using computers from home and working whenever you want to is highly attractive but unfortunately, most online startups will fail. Many of them actually fail before they even get off the ground.
Unfortunately, around 90 percent of all the online business startups will fail in the first 4 months. This happens due to various reasons like:
- Business owners do not know statistical probabilities associated with the business.
- Business owners do not think that they make mistakes and this leads towards failure.
- Business owners are convinced to do something that the company is not ready for.
- People do not properly plan.
The good news is that we do have around 10 percent of online business startups that are successful. These do not succeed by chance. There is a huge planning stage that is seriously taken into account and a lot of work is put into development. In order to help the aspiring online business owners, here are some reasons why startups fail and what you can do about it.
Wrong Ideas About Online Businesses
Most of the people that start an online business should not actually start a business since they're often not fully prepared. When referring to the Internet, they simply do not know how it works or they believe that the online world is the Mecca of success without work. Always remember the following:
Successful Online Marketers Have Self-Discipline
You cannot read a book that tells you that you can work 6 hours per week and become successful overnight. You want to work as much as possible and this automatically means that you have to be disciplined.
There Is No Auto-Pilot Online Business Success Blueprint
Many think that they can easily be successful online and that they will be able to get a lot of sales simply by being present online. That is definitely not the case. You want to think about everything associated with online business from analyzing the target audience to getting professional website development work done. In order to be successful, you want to basically build your own blueprint since auto-pilot success is just a myth.
Always remember the fact that online business success will NOT happen overnight. A lot of time and work will be needed for true success.
A Lack of a Business Background
Did you ever manage a team? Do you know at least the basics of accounting? Do you know how a business should be operated? If the answer to these questions is NO, there is a pretty good possibility that you are going to fail.
The aspiring entrepreneur has to understand as much as possible about business. You do not need to have a formal education like a college degree but it wouldn't hurt. The more you know about business and the higher the experience you have, the higher the possibility of success!
Accounting is a great example that highlights this point. Normally you would hire an accountant in order to tell you things like when tax deposits have to be made. While the accountant will surely help you out a lot, knowing the basics of accounting will help you to prepare for those tax deposits and various other situations.
Having the Wrong Mindset
Attitude is vital in everything in life. This includes business. A good attitude and a really good mindset will help out a lot. While this is not a guarantee of success, a bad attitude is a guarantee of failures.
We can offer two examples of bad attitudes that will surely guarantee online business failure:
- The business owner thinks that he can work whenever he wants to. This is totally incorrect. The smart business owner understands the fact that he/she will need to work hard and whenever it is necessary.
- The business owner thinks that he does not need a business plan. When you think that you do not need to plan, you will surely plan to fail. Just as with the brick and mortar business, the plan that is created is vital for the success of the new or existing business.