Many reasons have been developed as to why one will enter online business. One of them is that with the demands of a family many parents choose to work from home rather than juggling family duties and work. Others would start an online business to supplement their regular income. As owner of an online business I would have to know what the pitfalls of online businesses are.
It is therefore important for online businesses to identify what are the major reasons why online businesses fail.
1) Lack of knowledge – people are generally attracted by the money they can make from online business that they do little or no research about the online business. As quickly as they start the business it also collapses for the simple reason that they had not provided themselves with the intricacies of building and sustaining a website. You quickly become frustrated and you give up. Read broadly and do online research. If you were to start a directory then it is important you do extensive research on the successes of already existing directories. To start a directory and call it the Kenya business directory or Kenya medical directory is just a small element of the business as you require skills to drive that directory to be visible.
2) Get rich quick mentality – Majority of online business owners believe that online businesses are the easiest way to become a millionaire. But it is usually not the case as many online fold by the day. A combination of lack of knowledge and greed leads to unrealistic expectations on how fast you can see returns on your investment. It is important to identify a need and how best to meet the need while making a profit. When you approach a good idea from a merely a profit making venture you will be disappointed. We live in an age where customers are well informed and are always right. It does not matter whether they need the product if it is not packaged well they will reject it. To continue the above example of a Kenya medical directory means that you have to truly understand the needs of Kenyan doctors to be able to enlist them.
3) Choice of business – When starting any business you have to have a good understanding of that business or you will be playing catch-up while your competitors are growing. Start a business that you passionate but also have experience in. Many businesses will collapse because of lack of understanding what the requirements in your line of business are. Understand your line of business from an auction site to a information portal, get your skills aligned to that business. If you develop an auction site you must have some knowledge of auctioneering.
These are what I consider the common factors that make online businesses fail. Therefore for an online business to succeed you require to the following:
1) Skills and competencies – Develop skills and competencies that will ensure the success of your business. Read broadly on matters that relate to online business and benchmark your company against other success stories.
2) Realistic goals – set goals that are within the means of your business and the environment that you live. Whatever you invest in your business is what you will get out of it. The less effort you put the less you get out of it. To further use the above example, it will there before be essential to try to convince Kenyan doctors and Kenyan hospital to be members of the Kenya medical directory.
3) Passion – Love what you do because that is what will get you through the slump and help you celebrate during the good times. If you have no passion then you give easily.
Online businesses require constant effort and it keeps changing it is there before necessary that you keep abreast on what is happening and when it is happening. The challenges that are faced by owners of online business should not discourage anyone from trying to grab the opportunities that are abound.