Starting your own online business can be exhilarating, offering endless possibilities for growth and success. However, this path is also filled with challenges and obstacles.
Studies have also shown that 90% of online businesses fail within the first four months of operation. So it is important to navigate this entrepreneurial journey with caution and foresight.
Without further ado, here are some common pitfalls to avoid while launching an online business.
Not having a clear business plan
Most people might think a business plan is not needed because it is an online business. That is not true. You need a plan for every type of business.
Not just a business plan but a clear and realistic one. Having a clear business plan gives you something to work with as a guide. It tells you what to do, why you’re doing it, how to do it, and when to do what you have to do.
With a business plan in place, it becomes easier and you will not get lost in setting up the business.
However, make the plan flexible and subject to changes as you adjust your strategies as a newbie. Over time, it’ll become well defined.
Neglecting market research
One of the most crucial steps in starting an online business is conducting thorough market research.
There are a lot of businesses in the social media space already so if you are not clear about your goals and target audience, you might get lost.
So do thorough research to fully understand your target audience, competition, and market trends.
Neglecting financial needs
Online business owners might neglect financial plans because they do not need to pay for physical stores.
However, neglecting financial planning can make your business fail faster than expected. So be sure to prepare financial projections for your business, at least for the first 12 months.
You should also identify your business’ major funding sources and ensure there is an alternate source as well.
Not seeking help when needed
The earlier you accept that you can not do all that is needed to start your business alone, the better.
You are a new entrepreneur, so you may lack the expertise in certain areas critical to running a successful online business, such as marketing, finance, or technology. So why not seek help from experts or your older colleagues?
Failing to seek help from experts or mentors with the knowledge and experience you need can hinder your ability to make informed decisions and overcome challenges effectively.
Remember to network. Talk to people already in the business, attend workshops, and be open to partnerships.
Also, be open to learning. Learn from your initial missteps, and learn from experts and fellow entrepreneurs.
Ignoring the importance of Search Engine Optimization (SEO)
Search Engine Optimization (SEO) plays a vital role in driving organic traffic to your page and improving your visibility in search engine results.
Many online entrepreneurs just post their products and fail to implement effective strategies to optimize the content.
However, making use of the best SEO practices will improve your visibility in search engine results, online visibility, and potential customer reach.
Believing more followers is more sales
When starting your online business, focus on more sales than followers.
Many online business owners focus heavily on getting new followers, thinking when they have a large audience, sales will come.
However, having more followers does not mean you get more customers, especially when you do not have any marketing strategy to attract potential customers.
Instead of spending your time, energy, and money on getting followers, focus on nurturing relationships, boosting engagement with the right audience, and making them want to buy what you sell.
Poor customer service
Remember, you are an online business owner so you need to make people trust you.
So, provide exceptional customer service that will enhance loyalty. One of the excuses most small business entrepreneurs give is that they are still small so they don’t need any serious customer service. Believing customer service is for bigger businesses.
However, this is a costly online business mistake you should avoid. So, enhance to provide good and seamless customer service if you want your business to be successful.
