There are many reasons different online businesses fail today. According to Bloomberg, 8 out of 10 businesses will crash within the first 18 months. This is a mind-blowing 80% but why is it so?
While online and offline factors may be different, let’s examine some common reasons online business burn out so soon.
1 – Web Hosting
Every online business relies on web hosting. Without this service, you can’t be online. That’s why it’s a crucial phase selecting a web hosting for your online business.
Though the industry is so developed, with reliable and affordable web hosting services, we still have businesses crumbling because of poor hosting.
I started off my very first business on a free web hosting server with a lot of limitations. According to Brendan Wilde from Umbrellar Web hosting, domain names and web hosting services are quite affordable these days. So it’s unthinkable to fail because of poor choice of web hosting.
There are a huge number of reliable web hosting services out there but I won’t list them. You’ll have to do your research in order to make a choice.
2 – Poor targeting
We have been told that to succeed online, you need traffic. That’s true but it has a trap. It’s not just about the traffic. It’s about getting targeted traffic and these must be human visitors.
When I started one of my online businesses in 2011 (EasyRetweet.com to be more precised), I had a proposal from someone to buy traffic. Though that sounded weird, I gave it a try. Needless to say it was a pure waste of resources.
I had a spike in traffic stats but these were just random visitors. Whether you are tracking stats for your site or your mailing list, you need to be able to track the difference that may be as a result of bots and spam traps. No sales, no profit.
We have different ways to drive traffic today. Social media for instance is a huge traffic source but at the same time, it can drive you crazy. You won’t just go about sharing your links on Facebook, Google or Tweeting expecting to make sales.
One great strategy I recommend is to create niche/geo targeted social media accounts. It’s possible to have many different Twitter accounts targeting different niches or geo locations. Don’t always rush for a huge number of followers. Focus on targeting and you will always get exciting results from such accounts.
3 – Lack of qualifications
The Internet is a place where one can read on just anything. You find both free and paid resources. While the free materials on the Internet are great, there are a lot of limitations.
Some folks have depended so heavily on free materials with the hope to build a business empire. You can read about just any topic and acquire some knowledge to lay a foundation for your business. But for a long term sustainable business success, you will have to get some more training and this comes with a price.
Many entrepreneurs abandon today because of frustration and confusion. Whereas, if they invested a little more in training, they would acquire the required skills to face challenges in their business. While I don’t condemn any free training materials, I recommend getting a coach or investing in some premium training programs.
4 – To many things at a time
I’m a strong believer in developing Multiple Sources of Income (MSI). But what I don’t recommend is doing many things simultaneously. This can quickly lead to failure.
Focus on one thing, develop it to stability before engaging on another opportunity. Avoid trying anything that’s said to be the “next gold”. Once you have a business you think can yield profit, focus on it and drive success before attempting another opportunity.
5 -Doing everything yourself
The first thing I must say here is “partnership works”
Many people fail in business today because they want to do everything themselves. According to John Chow, in one of his training products, one of the things he does that contribute to his success is outsourcing.
You must learn to build a team of experts around your projects. Don’t be a graphics designer who also does the database and code programing. You may think you have the skills to do everything but that’s lying to yourself.
6 – Lack of the right tools
There is absolutely no way you can succeed without having the right tools for your business. Many entrepreneurs depend on free tools that don’t allow them the flexibility to grow their business.
You must identify the tools you need to grow and maintain your business and invest in them. Get the expertise to use those tools for maximum use. Trying things out may lead to damages and losses.
7 – Time
People who want quick success end up to be very impatient. Some businesses require time to mature. Before getting into any business, you must be able to measure its time. If you want profit earlier than expected, chances are that you’ll rush into wrong conclusions and quit.