No one needs to be told of how popular online businesses are. It has very recently become popular and it is definitely one of the biggest trends in the world right now. Everyone wants to make money online because everyone is online, and many others just want to make money from home.
There is no doubt that people who go into online businesses do so without proper of adequate research and preparation. So many people fail in a few weeks, and so many others struggle through the while and eventually learn the hard way.
The following points are common mistakes that are made by people who go into online businesses. The knowledge of these will definitely help you avoid them.
BELIEVING BUSINESS PLANS ARE FOR OFFLINE BUSINESSES – It doesn’t have to be a business, but whatever you see as a goal or source of income must be planned. An online business is not less of a business than an offline business. While you may not need a formal multiple pages business plan, you still need a plan in black and white. You must set goals, devise strategies, plan funding etc., to succeed in an online business.
TRYING TO LOOK SUCCESSFUL BEFORE EVEN KICKING OFF – Many people who go into online businesses are often carried away by how their logo looks, or how their website looks, or business cards and office arrangements etc., leaving more important issues that will move the business forward. These things are not unnecessary, but they can never be your priority.
NOT PAYING ATTENTION TO MONEY SPENT – Firstly, many people don’t know that it takes money to run online businesses. So, when they start one, they find it hard to handle the cost price and sort their finances and struggle to raise money as they go. Secondly, there is the need to plan your finances from the beginning of your business, raising all funds at appropriate times, knowing how much you will spend and how much to expect, etc. Again, online business is business, it demands as much as any other formal business.
PRICING – Whatever business you do, you are selling something, either a product (or variety of products) or services. How much you sell what you sell is quite important to how much you make. This point is connected to the previous point, because most people price their service or product wrongly because they did not plan their finances, so they don’t know per se, what their cost price is. You could be making a loss when you price your product or service too low.
NOT PAYING ATTENTION TO CUSTOMER SERVICES – This last point is quite riskier for online businesses, because a bad review on your website or other websites will not just reach the complainant’s circle but the whole world. It is very easy to ignore customer services because your business is virtual. However, it is also very easy to pay attention to it and move your business forward too.
If you are able to successfully avoid these mistakes, the probability that you will succeed in your online business will go up.