10 reasons why online businesses fail
It’s a disturbing fact that 90% of all new online business fail. But don’t let these statistics put you off starting a new online venture. I wanted this information to encourage you to ensure you don’t make the same mistakes as the majority do. 10 reasons why online businesses fail will prepare you for the upcoming challenging tasks. These revealing stats will hopefully assist you so you can move forward and be prepared for the obstacles that lie ahead.
Online business is a wonderful concept. I can fully understand the attraction and would always encourage individuals to follow their dreams. The idea of removing the shackles of paid employment making other people rich. The removal of salary caps, dedicated hours and commitment. You feel trapped in a business where you hold no personal interest. This can increase stress and frustration over time and can eat away at you like a virus with no antidote. You deserve better and you believe you have what it takes to sack your boss! The 10 reasons why online businesses fail may assist you on your journey.
These positive actions are a testimony and prove you mean business. You are a coiled spring waiting to bounce into action. You have a solid business idea in an area where you have an interest or have previously excelled. You want to get started today without delay. The road to financial freedom is clear in your mind. Your goals will be achieved and you will start to live the type of lifestyle you dream of. You want to join the online business ‘gurus’ that are getting rich. You are getting left behind and want to jump on this gravy train before it leaves the station for good! This article “10 Reasons Why Online Business Fail” will hopefully provide you with a reality check.
Online Business is a melting pot of individuals all trying to outdo each other. They all want their slice of this very lucrative pie and will not allow anyone to stand in their way. They have an obsession that has to be cured. The only remedy is the online business success they crave. They will try just about every trick in the book to drive you out of business by either outranking you or stealing your customers.
If you are considering getting involved in a very competitive niche then fasten your seatbelts. Don’t be one of the 10 reasons why online businesses fail. Your rivals are not going to be happy. They will reverse engineer any success you have so they can copy and then do it better. They will dissect your marketing strategies. They want to know your traffic levels and sources. How you achieved a high ranking for specific keywords. The list goes on. This is the reality of online business. I am revealing to you 10 reasons why online businesses fail but I could probably list 100.
I hope I am not putting you off starting a new business? There is, however, finally some good news. If you are in a less competitive niche then many of these problems won’t affect you. Not at this present time anyway. If the niche becomes popular then hold onto your hats because it’s going to get very interesting. But at that point, you should already have an established business within that niche that has an excellent ranking and traffic level. It’s not going to be easy to displace you as long as your online business was built on solid foundations.
Let’s take a look at these 10 reasons why online businesses fail in more detail to ensure your business is not going to be in the 90% fail statistics. Some of these will familiar to you and others won’t. But if you take note of these factors then you will be better placed to avoid them as your online venture develops.
The top 10 reasons why online businesses fail
1: Your personal motivation
Do you have what it takes to be a success? Have you achieved something in the past that will hold you in good stead? Maybe you have overcome difficult challenges in business or during your career? When the odds were against you a positive result was accomplished. You have shown a determination to ensure a beneficial outcome was achieved. A persistence that paid dividends in reaching the end goal.
If you have these types of motivational traits then I think you have what it takes to succeed in online business. But check out the other 10 reasons why online businesses fail to certify this.
2: Reaction to setbacks
Are you the type of person that gives up easily when things don’t go your way? Do you get easily frustrated by failing to accomplish specific tasks? How do you feel when you work hard at a project and don’t see any positive results? Online business is all about enjoying the good times and learning from the bad times. You cannot complain when things don’t work out as you planned. You didn’t forecast the negatives and now you can’t handle them.
If you can’t handle the setbacks then online business is not for you. This is only one of the 10 reasons why online businesses fail.
3: Online business equipment?
Do you have the equipment required to start an online business? A solid Internet connection? You will require regular access to a computer or laptop, printer, and mobile device? A tablet or iPad would be beneficial though not essential. You really need all these hardware and gadgets. These are the tools that you will be using on a regular basis. Without these, you are sunk from the very beginning. If you don’t possess these essential goodies then are you in a position to buy them? Trips to the library to use the computers for free is not going to cut it. You have to own these items.
If you have all these in place, ready to go then you can start to build a successful online business. Without them, you are lost! Another one of the 10 reasons why online businesses fail
4: A place to work.
Where do you intend to work in your online business? If it’s surrounded by children, family members and constant distractions then it’s going to be tough. You have to treat your online business as a real business. To get results you have to focus…and that means no distractions. You can do it from the kitchen table as long as you have a few hours a day to concentrate to ensure you make progress. You can’t work around people eating, playing and neighbors popping around for coffee. You won’t make progress so your online business will fail. Try and create a professional place for work. A hub for your online business. A small study or bedroom is perfect. You can close the door and focus 100%.
If you can’t secure a dedicated place for work at home with no distractions then your online business will probably fail. This is No4 of the 10 reasons why online businesses fail.
5: Quick Learner
The internet is constantly evolving so we have to make changes to our business from time to time. This ensures we do not get left behind the competition. These could be design skills, Internet marketing techniques or common business acumen. There are times in online business when we have to learn something new. This is the same for everyone…I guarantee it. Do you have what it takes to learn something new? Can you follow and are willing to follow simple systems and methods that can take your business onto the next level? You will be amazed at how frequently the online business industry changes. We have to harness new skills and knowledge to compete.
Google algorithm change is the most common. This happens every 6-months or so. If our website drops in the search engine results because of an update to the Google page ranking system then it will affect business. We have to act quickly to get these rankings back. This is just an example of what lies ahead.
If you are able to learn new methods and skills then you will be fine. If you can’t afford to outsource these tasks to make these changes for you then you’re in trouble.
We are halfway into this article that shows us the 10 reasons why online businesses fail. If you reached this point I can see instantly you are determined. You are still will us so give yourself a pat on the back.
6. Your Time
How much time can you commit to your business? I will tell you from experience that building a new online business is not for the faint-hearted. You need a total commitment to your time. 30-minutes a day, 2 or 3 days a week is not going to be enough. In the early stages, I would recommend 2-4 hours every day. Then you will see results quicker. Your business will evolve before your very eyes as you build and construct it. This should hopefully encourage you to do more and then you can really upscale things onto a different level.
If you don’t have the time to commit, then online business is not for you. One more of the 10 reasons why online businesses fail.
7. The 120-day Google challenge
Facts have revealed that the majority of new online businesses fail before the 120-day mark. Why is that? In most cases the answer is simple. Without Google rankings, your website will not get sufficient traffic levels. If you don’t have enough traffic you won’t have enough sales. Your website is new and Google doesn’t trust it.
Maybe it thinks that you are going to join the 120-day drop-out quota. Why list your website if it’s not working as a business? Why index pages that may no longer be there next week? You have to convince Google that you are here for the long haul. You will add fresh quality content on a regular basis that Google’s customers will love. Your website is an authority in this particular niche and beneficial to Google.
The search results will be a sad place without your business listing. Surfers are missing out on something quite wonderful. So stick with it an don’t join the 120-day stats club. You will be rewarded by Google when they are ready, and only when they are ready! Don’t get frustrated with slow traffic, perseverance brings huge rewards in the long-term. If you have the determination to pass the 120-day challenge then you are closer to online business success. This is the most common of the 10 reasons why online businesses fail.
8. Shiny Objects
Don’t get distracted by shiny objects. Avoid being a magpie jumping from one business to the next because some (so-called) expert says it’s a great niche to be in right now. You have already done your niche research so there’s no going back. Your choice has been made, stick with it and trust what you believe in. Don’t get distracted by someone you have never met who says ‘get on this now’ or ‘join us and make money online’.
All this will achieve is you will end up at the very same point where you are now…only 3-months down the line. You have wasted 3-months of work and 3-months of your life. Ignore the shiny objects. Stop searching for ‘online business ideas’ and ‘quick online income’ scams. If it sounds too good to be true that’s exactly what it is. Trust your intuition and continue with the momentum in your business. Success is closer than you think.
We are nearly at the end now and if you’re reading this then you are making good progress. I understand that the “10 reasons why online businesses fail” article isn’t something that you want to read. But to be honest, it will assist you with your online business progress in the long term.
9. Niche Mistakes
Ideas are 10-a penny. I can honestly write down 20 great ideas for online businesses when I am walking the dog. You have probably done this also. You carry on doing the simple things in everyday life then ‘BOOM’, another great online business niche enters your head. Another lightbulb moment. You convince yourself this is the one. Detailed research tells you something quite different.
Choosing the wrong niche is a common reason for online business failure. You were 100% sure in your mind that this is the one for you. But it’s possible that personal feelings have overtaken reason. This is your interest, where your knowledge lies. You’ve been infatuated with this topic for years and dream of starting an online business on the subject. Your friends have encouraged you and they want to be your customers. The problem is…it was all for nothing!
The basic research you did was not enough. You should have gone into the business investigation in more detail. Analyze the statistics to ensure a business can be built around this niche and more importantly…that it can be monetized. The groundwork you completed to ensure the idea was feasible has found to be wanting. The traffic stats report levels told you lies. You made a mistake and now you have to come to terms with this catastrophic disaster. There is only one option available…to stop the online business and move onto the next! One of the 10 reasons why online businesses fail.
This is a very sad, but common problem for many online business owners. The realization they have chosen the wrong niche. An online cash-cow that can’t even spit pennies. The only positive you can take away from a situation like this is the experience. Do the research correctly next time in the beginning to avoid potential disaster in the future.
10. Circumstances Change
We cannot plan out every aspect of life. Occurrences happen when we least expect them. One day the future is clear and something comes out of the blue to change all that. It could be a family issue, health, finance or something more personal. Some of these will have a factor in running an online business and a reason for failure.
In most circumstances, this is not the fault of the website owner. Life throws us many challenges and we have to deal with them during unforeseen issues that affect us. We have to focus on priorities and this could be to the detriment of the online business. We have to take stock and progress accordingly.
I hope this article “10 reasons why online businesses fail” has been some help to you. I know we have focused on the gloomy side of the online business. But if we can address these it makes us stronger. A determination to succeed. No unexpected surprises ahead so we can proceed with caution but with the mindset to make our online business a success!