Top Reason Why your Online Business is FailingThursday June 22nd, 2017 Z.com News, Events, Information
By: Mark Christopher Lund
Inadequate or Lack of Proper Business Plan
Starting an online business, just like any other type of venture, requires precise and tactful planning. One should have a clear vision of the obstacles one would face in the future, be it in the financial, physical or mental aspect you should always be prepared. Do a careful research of all the things you might need before getting started and always make sure you have the right capital for the type of business you are pursuing online.
Ever wanted to open up an online clothing retail store? Well you should know that there are tons of other retail stores online, now it is here that you should be wary. If you wish for your store to stand out from the rest you should find that factor that well give you the attention it deserves.
Lack of Commitment
Nothing worth doing comes easy. Nowadays too many individual decides to get into an online business without thinking things through, this usually lead to either bankruptcy or the business wouldn’t even have the chance to take off at all. Managing a business even an online one requires almost all your attention poured unto it, especially true when you are just starting. It is okay to struggle and even fail in the first few tries, but if you truly wish to succeed in your business, both dedication and patience is required.
No Target Clients
Tring to start a business you would wish to cater to as many as possible clients, this is idealistic, but a dangerous mind -set. Catering to a broad spectrum of clients would only give you a difficult time in turn might make you want to quit, before you even get anything started.
Not Enough Reach
This is it! You have the right capital, you think you have come up with the best business plan possible, you are dedicated and well prepared. The only problem here now is that no one is visiting your site. For an online business to prosper traffic is important. There are two main ways to gain more traffic to your site. The less hassling method is Pay-Per-Click, paying to advertise your site on a much more successful website well help you gain more visitors to your site and hopefully more customers. In the case that you prefer to not pay for the advertisement, as it may become too expensive, a much cheaper, yet more effective method is through the use of contents. Creating worthwhile and relevant contents for your site is a sure way to get the attention of all your possible clients.
Improper Handling of Inventory
May not apply to all. If you are in a retailing or a business type requiring an exchange of goods or products, proper keeping of your inventory is a must. Having too much inventory could lead to poor cash flow and could potentially hurt your capital, but having too little inventory could spell trouble for your sales and possible market value as customer becomes disappointed in your service.
Having a Bad Website
Your website would be your frontline in presenting yourself to the world and future clients. If your site looks clunky or is difficult to operate, the chances of converting your online visitors to possible clients would certainly be a problem. Update or create a site that would make visitors want to stay and browse around. The following are other common reasons why your site is performing poorly in terms of serviceability:
- Poor Quality Images
Most individual respond to visual stimulation, having images of poor quality around your site would certainly turn this visitors away. Use images of decent quality, this would not only make your site look nice it would also give it a more professional vibe.
- Slow Loading Time
The ideal loading time of a site is just under 2 seconds, having a site to load at this speed might be hard, but not entirely impossible. Having a quick response rate on a site would ensure that your visitors would not get bored waiting and even increase the chances of getting a sale.
- Poor Security
The most important yet often forgotten is the security of the site. If your website requires to take in money you should secure your site by getting an SSL certificate, this would encrypt all requested information from clients, protecting them from thieves and hackers.
Lack of Action
Sometimes simply not having the motivation to even get anything started is the problem or if you are already starting, having the mindset of letting things go their own way naturally will backfire when you start losing profit and even worse your capital. It is in the beginning stage that you would foresee how your business well be in the long run, so it is crucial that you place a lot of effort in building your online business, but do it so that it is aligned to your own business as to not waste time and money.
Poor Financial Management
Money is an integral part of any pursuit, being able to monitor it up to the last peso is crucial. Your online business could also fail if you don’t have the right contingency plan, a reserve fund of money you can use in case of financial issues. You would be tackling different areas of accounting in your business, so doing some research and study on topics like cash flow, taxes and expenses and other financial issue would be a good practice. There are also online tools that you could use in aiding you manage all your accounting issues.
Not Building Connections
Having a name is not enough for ensuring that your business would run for an extended amount of time, most companies especially the more established ones usually forget to interact with their clients in a human or personal way making them almost robotic and unapproachable. If you wish for your business to prosper and be relevant for long time you must not only provide the products your customer wants, you must also cater to their needs, an example would be if they have questions about the product, make sure to have the right Q&A to answer whatever questions the customer may ask. This would not only make you and your business approachable it would also make the clients trust you more.
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