With the popularity of blogs, many online business entreprenuers are turning to blogs in promoting…
When you hear things like, 90% of new businesses fail in their first 5 years, what is your reaction? Do you just overlook it with a wave of the hand? Are you appalled by such stats?
Fact is, I’ve always wondered why, with the available information today, many wannabe online entrepreneurs still fall flat on their faces with their online business. For me, it’s really worrisome. I just can’t imagine why the high failure rate.
And that is why for some time now I have been researching and studying this topic. If you have read most of my blog posts for the past couple of years you will discover that I’ve tried to, in one way or the other, proffer some help. So this post is actually an addition to the many others that are already published on this blog. Just take a look at the related posts section below this post for more on this!
Okay back to the question, why the high rate of online business failure despite the available info on the net today?
Some Misconceptions About Doing Business Online
Of course, there are a number of reasons. But before we look at that it is important to say that success happens online because of some very important factors.
Success happens because people have the right ideas about internet marketing and how it works…
Success happens because people do not expect to get rich quick or become millionaires overnight without lifting a finger; as most gurus will want to make you believe!
So, if you jump into starting an online business with the notion that you can get up and go to work whenever you want you will only be setting yourself up for failure. Those who think they can work when they feel like it and still make a living online are living in dreamland. It will never happen!
If you have these false hopes then you better do a rethink.
Again you can’t expect to build a successful business online by simply getting a website built and hanging out an ‘open for business’ sign. The world isn’t going to line up and hand you their money because you have setup a website!
You must understand that online businesses do not run on auto-pilot without your personal input. Yes, it’s true that you can automate most of the workings of the business but that does not take away the place of putting in the right amount of work, especially if you’re just starting out. Most of the internet marketing gurus who entice you with their hyped up sales-letters have already paid their dues in this area. So, do not believe them when they tell you this in their bid to sell you their push button solutions.
It’s important therefore that you get this clear that success online has never happened overnight for anyone and it won’t happen over night for you!. You must be prepared for the time investment if you desire to be successful.
Common Reasons Why Many Internet Business Startups Fail
1. Lack of Basic Business Knowledge
All businesses have two things in common. They are BUSINESSES and therefore be run like BUSINESSES!
Anyone who desires to build a successful business need to understand the accepted practices of running a business. They need to understand simple and basic ideas like acceptable over-head expenses in relation to projected income. Internet entrepreneurs need to understand profit and loss and what constitutes each.
A college degree in business is not essential for a digital entrepreneur to be successful but it sure wouldn’t hurt. Just some basic business knowledge is absolutely vital.
If you have a hard time balancing your personal check book, you probably should keep your day job and forget about starting an internet business.
It is true that you can hire accounting firms that will tell you whether or not you made a profit but not how to make it. If you have no business background you need to, at the very minimum, get some good business advice before you even consider opening an online business.
The fact is all successful businesses operate on sound business principles. Successful businesses aren’t accidents. The proof is in the numbers….only 10% of new internet businesses are successful or are even still in existence after the first 120 days of operation!
It is not even reasonable to expect to make a profit from a new business enterprise for many, many months.
You must have sufficient resources available to not only launch your business but provide for your own personal needs for an extended period of time. It’s called ‘capital’ and there is no way around the need for enough of it.
The good news is that, just as I have said earlier, there are enough info out there to help you out. A simple visit to Amazon.com will open a whole of possible help to you. Better still here’s a top recommended resource: “Go It Alone“
2. The Wrong Mindset
You’ve most likely heard the phrase, “He has an attitude!” This is usually a derogatory remark made about a person with a disagreeable attitude.
But the word ‘attitude’ is an important one when discussing internet marketing start-ups. A good attitude…a good mindset can’t insure success but a bad attitude and a bad mindset can certainly guarantee failure!
Here are some wrong attitudes that will absolutely guarantee failure:
1. I can work when I want to -Wrong, wrong, wrong! You can’t just work when you feel like it. You have to expect to put in many long and very tedious hours of very hard work to make a new internet enterprise succeed.
2. I can get rich quick – You couldn’t be more wrong and you are not only wrong but you are putting yourself in danger as well. There are bazillions of crooks out there on the internet who are waiting for their next easy prey and if you are looking for a quick way to get rich, you ARE the next mark.
It is possible to make a very comfortable living with internet marketing enterprises but if anybody ever tells you it is quick or easy, they are deceiving you.
3. I don’t need a business plan – There you are…wrong again! Internet business is BUSINESS. The same business principles apply to online businesses as they apply to any brick and mortar business. It is imperative that you have a plan for success that is based upon these sound business principles.
4. When you have an internet business of your own, you don’t have a boss – Wrong again! You are your boss. If you aren’t a good boss who sees to it that work is accomplished on time and in full, you will doom yourself to certain failure.
Unless you are a boss who sets up a working schedule and establishes goals that must be met, you will find yourself working at a job under a boss who does do those things and maybe for minimum wage!
So, How Do You Optimize Your Possibilities for Success?
The thing about starting a business…any business…..is that there is no guarantee of success under any circumstance. Even big international businesses can fail at new business ventures. Failure is always an option but the possibility of success can be optimized.
You can optimize the possibility of success by:
1. Having a good solid business plan in place. There is an old saying: “Those who fail to plan, plan to fail”. A detailed set of plans for success will greatly help. You need to have the steps from getting from point A to point B listed in great detail that include realistic cost estimates for accomplishing each step.
2. Expecting to work very hard to accomplish your goals. Never expect anything to be easy. You will be right most of the time because things are rarely as easy as they look. Each step toward success requires work, time and patience. Sometimes things don’t work out right on the first try. You have to be willing to try again and again until you do succeed.
3. Not falling for get-rich-quick schemes. The internet woods are full of those who prey upon those who are looking for quick and easy ways to become rich. Those ways do not exist. Get over the idea that there is an easy way out. There is NOT.
Please remember those statistics – 90% of all new internet businesses fail in the first 120 days!
You don’t have to be part of that majority. You can become a part of the 10% minority.
Will love know what you think of this post. Kindly share in your comments below.
This is an incredible post and was worth reading.
I am sure that it will be beneficial for all the newbies.
Thanks for sharing.
Being an online businessman myself, Yes, really feeling motivated after reading this post. Excellent work on the content. This post can really help people to get their mindset back into track (if you know what I mean) thank you.
Basic knowledge is very much important if any one is taking a startup or thinking to have a start up. Because I personally have seen that maximum of the startup breaks just because their system is not right and they are not having even a basic knowledge of taking a startup.
I was hopeless after failing in my first online business which I have started 3 months back but after reading this article I am feeling motivated enough to start again.
Just amazing information you shared here. Many time people start their online business but after some time they will nevus and leave it. For that person this information is very crucial. Indeed thank you for sharing.
It was really an inspiring article especially that Dhirubhai Ambani Quote. Your article will really help for people who are struggling to setup an online business.
This is great and inspirational blog to follow.
We have also recently started new e-commerce store for school uniforms, shoes and bags etc.
It is very essential to have some patience while doing so.
Lack of commitment. You talk about how much you want to start your own business with your family or friends, but you never really commit to getting started. You keep waiting for the ‘right time’ or continue to ‘think about it’ without ever getting started.
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