Why do some businesses fail while others succeed? This question is not always an easy one we can answer right off the bat. Sometimes, the failure is a result of something really simple like having too much competition. Oftentimes, the answer is one of complexity, and there may be several factors that prevent your business from turning a decent profit.
There have been studies conducted extensively to show that a shocking 90 percent of businesses fail in just the first four months of operation. Scary statistic, isn’t it? This of course doesn’t mean that you should automatically write your business off as a potential failure, but you do need to understand what other businesses are doing wrong. This way, you can be among the 10 percent of successful business owners that go on to achieve great things.
- No Business Knowledge
With technology the way it is today, people are led to believe that pretty much anyone can build a website, sell items and become a success. Though it can’t be denied that there are numerous tools at your disposal to help you create a website, you still don’t understand the basic core values of running a business.
A successful business needs to turn an actual profit, but if you don’t have a background in business, you will fail. Not only will you more than likely invest in the wrong products and services, you won’t understand the structure that’s necessary to turn a profit. Some of what you make will need to be invested back into your business. You have operational costs that you need to think about, but this is all knowledge that comes from years of working in the business field.
- No Business Identity
If you want to establish your online presence as a successful company, you need an identity. What that really means is that you need to know the products you will be selling, what the market is for them and why you’re choosing to sell these products. Most people think that just because they experience a certain amount of success on eBay selling used junk or antiques at the local flea market, then that is identity enough to start a separate business.
There is a difference between selling things occasionally online via a marketplace, or choosing to become a full-time business owner. If you can’t answer the basics of why you’re selling the things you do, there is no chance you will ever break down the barriers to success.
- No Goals
Yes, as a business owner you have dreams of making a lot of money, but you need to invest your time into specific goals. For example, focus on reaching a certain percentage of conversion rates or try to earn several thousand dollars a month. If you don’t see where your business is heading, there is no way you will evolve.
As a side note, be realistic about the goals you set. You’re a small business that is just starting out, so there is no way that you will make a one thousand percent profit in four weeks. It takes years of experience to turn the profit you want, but if you exercise patience and set good goals, you will get there!
- Not Learning The Right Skills
You may do well selling at a physical location, but it is not the same online. There are certain skills that you will need to learn to supplement what you may already know. Online marketing is the heart and soul of your online traffic. If you don’t learn how to market your business, no one will know of your existence.
Apart from your marketing efforts, you will need to focus on HTML coding and CSS. These are programming skills that no one should be without when they try to make it in the online business world. There are numerous guides, articles, and books that have been published to help you learn more about these business skills. You don’t need a college degree, but you will need to invest some time into getting acquainted with the mentioned concepts.
- Too Much Competition
One of the most common reasons a business fails online is simply because of too much competition. If you’re selling electronics, you can rest assured that there are bigger and better competitors out there. What sets you apart from the competition?
If you can’t come up with any differences between your business model and the one competitors have, your business is in big trouble! It is not impossible to differentiate yourself, but it is not easy. You need to see what your competitors are doing wrong, and fix your website to cater to the needs of the average customer.
- No Social Media Presence
Remember that bit about marketing your business online? Social media should be included in your marketing efforts. Most consumers look at Facebook, Twitter and Pinterest to find good businesses to deal with. Not having any type of presence on these websites could be your downfall!
This doesn’t mean that the only way you should be driving interest to your website is through social media. It is important to rely on other methods of marketing and focus on your website’s SEO. Without the right combination of marketing efforts, your website will never see the light of day in the search engine results.
Lastly, you will need to enhance your website by posting helpful guides and articles. Not only is article marketing the basis for success, but it drives traffic to your website like nothing else. More often than not, people find your articles way before they even see your products. If you don’t provide helpful and relevant information throughout your site, you will not get traffic.
If your business is failing due to some or all of these problems, it is important to act quickly. Your mistakes can still be corrected, and you can still help reverse the effects of not having a good business plan.