10 Causes of Failure in Online Business
10 Causes of Failure in Online Business - Actually what causes failure in Online Business that often happens to beginners? Though many say that online business is a business that tends to be easier to do and cheaper than offline business.
In addition, there are now many courses and workshops that discuss online business, both for beginners and those who have long been in the internet business. However, more people fail than those who succeed in running an online business.
The following are some of the causes of failure in online businesses that often occur, both among beginners and those who have long been online business.
1. Incorrect Mindset: Causes of Failure in Online Business
The right mindset is needed when we start learning and running an online business. Those who have the right mindset have a greater chance of success in online business than those who have the wrong minset.
Then what are some examples of the wrong mindset?
This mindset is very inhibiting someone to develop, even it will plunge the person. When starting an online business, we should focus our mindset on things that can support the learning process and practice running an online business.
2. Lack of Knowledge About Online Business
Starting something without adequate knowledge is okay. In that sense, we will often do trial and error or trial and error alone. So, we learn from the various mistakes we made during the trial and error process.
However, doing trial and error in an online business must also have knowledge. There is basic knowledge that we must understand in order to learn about internet business, for example understanding how to create e-mail, how to create a blog / website, how to create an account on social media and marketplace, and others.
And most importantly, basic knowledge about online business must be owned by beginners. For example:
Knowledge of online business must be studied continuously. It's not enough to just know, we also have to practice and do various trials to find the best way to run an online business.
3. Not Focusing on Running an Internet Business
This is the most frequent cause of failure in online business. The type of internet business is indeed very diverse, and each type of internet business has promising potential.
It is not uncommon for beginners to try all types of online businesses, and think that by running all types of business then he will be able to succeed. In fact, the more types of businesses that are done, the greater the chance to FAIL.
Therefore, it is better to focus on choosing only one or two types of business that are in accordance with your interests and abilities. For example, you have the skill to write articles, so the most suitable business is to sell services to write articles or build blogs / websites to make money.
4. Not serious about running an online business
Online business is actually just the same as an offline business, just different media. This means that in order to succeed in having a profitable business, we must be serious in carrying it out.
Those who are not serious usually run an online business as little as possible. When sales are good, they will be quickly satisfied and think sales will continue. And when sales are declining, they only complain and don't do anything meaningful to increase sales.
If you only do business online without seriousness, you will surely be eroded by the era and serious new players. Today we can see many new players who are successful, this is proof that only serious people can successfully run a business.
Also read: What Is Internet Marketing
5. Do not want to upgrade your online business skills
In running all businesses, we must always strive to improve skills and knowledge. Moreover, the internet business is very dynamic, changes and improvements occur in a relatively short time.
You could say upgrading online business skills is one of the important investments that must be done by all online entrepreneurs. What needs to be done to upgrade skills?
Depends on the type of internet business that you run. For example, if you sell online, then the skills that must be continuously upgraded are;
With the knowledge and skills that remain up to date, we can survive and advance in competition in the online business.
6. Lack of innovation
As mentioned above, this internet business is very dynamic and there are always developments on all sides. New players are always looking for ways to compete with old players, so they do a variety of new ways.
If the old players don't innovate, of course they will miss the new players. One way to deal with competition from new players is to innovate.
This innovation can take many forms, can be from the technology side of the website, it can also be from the way of marketing, or maybe innovation how to communicate with consumers. Whatever innovation is, if the purpose is good and useful for consumers, it will certainly have a good impact on our business.
One example of innovation:
7. Impatient and Easy to Give Up
Being impatient and giving up easily is one of the most frequent causes of failure in online business. Because of the wrong mindset from the start, assume that the internet business is a rich business, so many beginners are impatient and finally give up.
All businesses need a process in order to reach a point of success, and even then must work hard. So, if you have a habit of being impatient and easily discouraged, you should not try to do business online because it will be a waste of time.
8. Limitations of Time in Learning and Practice
It is undeniable that learning an internet business until finally having a profitable and stable online business that takes time. Those who work as office workers and try to learn and practice internet businesses often feel overwhelmed.
Dividing time into today's main professions while studying and running an online business is a very tiring job. Not infrequently beginners stop in the middle of the road because they feel unable to run two professions.
Some people decide to resign and focus on doing business online. However, some people still discouraged because they were worried that the business would not work well even though the cost of family needs could not just stop.
This of course must be addressed carefully. Don't be easily persuaded by motivator words that tell you to leave work to do business online, consider also the family situation and conditions. If you still can, while you are still on two ships, work in an office while running your online business.
9. Free mentality
Free mentality is one of the causes of failure in an online business that is often experienced by beginners. Still related to the mindset, many think that running an online business can be successful by free means. There is no business that is truly free, it might be more appropriate if the online business mentioned can run with small capital.
In addition, if you always think that science and equipment run an internet business must be free, then chances are that your business will be difficult to develop. Indeed there are services for doing business online that we can get for free, but of course these services have restrictions and provisions that limit your creativity.
And of course we will appreciate something we pay more than we get for free. This will ultimately shape our mindset that our business is very valuable and must be managed as well as possible. Therefore, don't be free mentality!
10. Make grandiose targets
There is a saying that says "Pursue your ideals as high as the sky." That is, we may have the highest possible aspirations. However, my advice should be your dream or target in doing business online not too grandiose.
Not infrequently you know the target that is too high is the cause of failure in online business. For example, an online entrepreneur has a profit target of Rp1 billion per month even though the margin of one sale is very small.
Make the target of an online business that is measurable, still reasonable, and achievable. Every time you reach your target, you can increase your target to be higher, and so on. That is, it is better to make a reasonable target and succeed in achieving it rather than making a grandiose target but failing and despairing.
In addition, there are now many courses and workshops that discuss online business, both for beginners and those who have long been in the internet business. However, more people fail than those who succeed in running an online business.
What are the causes of failure in online business?
The following are some of the causes of failure in online businesses that often occur, both among beginners and those who have long been online business.
1. Incorrect Mindset: Causes of Failure in Online Business
The right mindset is needed when we start learning and running an online business. Those who have the right mindset have a greater chance of success in online business than those who have the wrong minset.
Then what are some examples of the wrong mindset?
- Assuming an internet business is a rich business fast
- Think that online business can be successful without capital at all
- Underestimating and assuming an online business is easy
- And others
This mindset is very inhibiting someone to develop, even it will plunge the person. When starting an online business, we should focus our mindset on things that can support the learning process and practice running an online business.
2. Lack of Knowledge About Online Business
Starting something without adequate knowledge is okay. In that sense, we will often do trial and error or trial and error alone. So, we learn from the various mistakes we made during the trial and error process.
However, doing trial and error in an online business must also have knowledge. There is basic knowledge that we must understand in order to learn about internet business, for example understanding how to create e-mail, how to create a blog / website, how to create an account on social media and marketplace, and others.
And most importantly, basic knowledge about online business must be owned by beginners. For example:
- Know what types of online businesses
- Understand how to work in an online business
- Can run one type of internet business
- Etc
Knowledge of online business must be studied continuously. It's not enough to just know, we also have to practice and do various trials to find the best way to run an online business.
3. Not Focusing on Running an Internet Business
This is the most frequent cause of failure in online business. The type of internet business is indeed very diverse, and each type of internet business has promising potential.
It is not uncommon for beginners to try all types of online businesses, and think that by running all types of business then he will be able to succeed. In fact, the more types of businesses that are done, the greater the chance to FAIL.
Therefore, it is better to focus on choosing only one or two types of business that are in accordance with your interests and abilities. For example, you have the skill to write articles, so the most suitable business is to sell services to write articles or build blogs / websites to make money.
4. Not serious about running an online business
Online business is actually just the same as an offline business, just different media. This means that in order to succeed in having a profitable business, we must be serious in carrying it out.
Those who are not serious usually run an online business as little as possible. When sales are good, they will be quickly satisfied and think sales will continue. And when sales are declining, they only complain and don't do anything meaningful to increase sales.
If you only do business online without seriousness, you will surely be eroded by the era and serious new players. Today we can see many new players who are successful, this is proof that only serious people can successfully run a business.
Also read: What Is Internet Marketing
5. Do not want to upgrade your online business skills
In running all businesses, we must always strive to improve skills and knowledge. Moreover, the internet business is very dynamic, changes and improvements occur in a relatively short time.
You could say upgrading online business skills is one of the important investments that must be done by all online entrepreneurs. What needs to be done to upgrade skills?
Depends on the type of internet business that you run. For example, if you sell online, then the skills that must be continuously upgraded are;
- The way online marketing is updated
- Knowledge of channels to sell online
- How to communicate with consumers
- And others
With the knowledge and skills that remain up to date, we can survive and advance in competition in the online business.
6. Lack of innovation
As mentioned above, this internet business is very dynamic and there are always developments on all sides. New players are always looking for ways to compete with old players, so they do a variety of new ways.
If the old players don't innovate, of course they will miss the new players. One way to deal with competition from new players is to innovate.
This innovation can take many forms, can be from the technology side of the website, it can also be from the way of marketing, or maybe innovation how to communicate with consumers. Whatever innovation is, if the purpose is good and useful for consumers, it will certainly have a good impact on our business.
One example of innovation:
- AMP website technology (accelerate mobile page)
- How to communicate with consumers through WhatsApp and Facebook Messenger
- And so forth
7. Impatient and Easy to Give Up
Being impatient and giving up easily is one of the most frequent causes of failure in online business. Because of the wrong mindset from the start, assume that the internet business is a rich business, so many beginners are impatient and finally give up.
All businesses need a process in order to reach a point of success, and even then must work hard. So, if you have a habit of being impatient and easily discouraged, you should not try to do business online because it will be a waste of time.
8. Limitations of Time in Learning and Practice
It is undeniable that learning an internet business until finally having a profitable and stable online business that takes time. Those who work as office workers and try to learn and practice internet businesses often feel overwhelmed.
Dividing time into today's main professions while studying and running an online business is a very tiring job. Not infrequently beginners stop in the middle of the road because they feel unable to run two professions.
Some people decide to resign and focus on doing business online. However, some people still discouraged because they were worried that the business would not work well even though the cost of family needs could not just stop.
This of course must be addressed carefully. Don't be easily persuaded by motivator words that tell you to leave work to do business online, consider also the family situation and conditions. If you still can, while you are still on two ships, work in an office while running your online business.
9. Free mentality
Free mentality is one of the causes of failure in an online business that is often experienced by beginners. Still related to the mindset, many think that running an online business can be successful by free means. There is no business that is truly free, it might be more appropriate if the online business mentioned can run with small capital.
In addition, if you always think that science and equipment run an internet business must be free, then chances are that your business will be difficult to develop. Indeed there are services for doing business online that we can get for free, but of course these services have restrictions and provisions that limit your creativity.
And of course we will appreciate something we pay more than we get for free. This will ultimately shape our mindset that our business is very valuable and must be managed as well as possible. Therefore, don't be free mentality!
10. Make grandiose targets
There is a saying that says "Pursue your ideals as high as the sky." That is, we may have the highest possible aspirations. However, my advice should be your dream or target in doing business online not too grandiose.
Not infrequently you know the target that is too high is the cause of failure in online business. For example, an online entrepreneur has a profit target of Rp1 billion per month even though the margin of one sale is very small.
Make the target of an online business that is measurable, still reasonable, and achievable. Every time you reach your target, you can increase your target to be higher, and so on. That is, it is better to make a reasonable target and succeed in achieving it rather than making a grandiose target but failing and despairing.
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