The purpose of this research report is to identify the common reasons why the online businesses fail to promote their brands and what are their most common mistakes. Moreover, the research report serves suggestions and advice to make your online businesses successful.
Introduction
Why do online businesses fail?
There are so many factors that prevent online businesses from turning a profit or that lead to eventual downfall. The reasons are simple- heavy competition or involving a lack of necessary internet marketing knowledge and activities.
Studies have shown that 90% of online businesses fail to survive in their first four months of operation.
In this research report, we’ll examine some of the most common reasons that lead to online business failure and cover some ways to prevent this failure and get the online business on a path of success.
Heavy Competition
The answer to the question of ‘ why do online businesses fail? ’ is very simple – too much competition. To beat this heavy competition, there is a need to identify the weaknesses of the competitor’s and take advantage of them as quickly as possible.
To succeed against the established businesses, you need to have a very good idea of what they are doing wrong, or not doing at all. For example, if you are selling electronic items, you may notice that your biggest competitor doesn’t have a detailed “how to use” page on their website which may be irritating for their users and driving them away.
Identifying these weaknesses and modifying your business model or tactics approximately can give you the edge you need to succeed. Keep a close watch on what your competitors’ are doing by following them on social media or signing up to receive emails from them. Chances are, they will try to identify your weaknesses, too so it’s crucial to stay ahead of the game.
If you are at the stage at which you want to start a business but aren’t sure what to do, choose carefully. Look for markets that have lower barriers to entry in terms of competition and marketplace dominance.
Lack of defined business identity
Before starting an online business, you should be able to build an attractive website with a very clear identity and purpose. You should be able to answer a few simple question with confidence:
- What am i offering?
- Why is it desirable?
- Who is my customer?
- How does this benefit them?
If you can’t answer these basic questions, this may present a challenge for your business. This way also help you to write great website copy and properly optimize your site for specific keywords or key phrases.
Lack of Basic business knowledge
Advance in technology and online services have made it easy for almost everyone to open a business online. There are a variety of website platforms and shopping carts that allow you to sell products from your website. Running a business is not as simple as subtracting your expenses from your revenue. There are a lot of factors that determine whether or not you are operating at a profit and not being aware of them could very quickly lead to your downfall. Before starting your business online or opening an e-commerce website, make sure you have a full knowledge of how to run a business and when your business is operating you need to focus on running it – not learning how to run it.
No business goals
You should be able to answer the question – what are my long term goals? Many online businesses fail because they do not have any pre-determined goals and expectations. Yes, you may have a vague goal of ‘make money by selling online’ or may expect to be profitable by offering a service but you should have some very specific and realistic goals.
When you are setting goals for a new online business – start with small and realistic goal. Once that goal is met, you can set a new goal. Make sure that you are doing the right kind of work to help meet your goals.
Website Lacking in Search engine optimization (SEO)
SEO or search engine optimization is a crucial component of any modern website. SEO refers to a few ways by which a website is properly optimized to rank more highly in search results. Some common ways that a site can be optimized is through keyword-rich content, internal and external links and the presence of special text like alt text on images. Without SEO strategy, it can be extremely difficult to rank in search engines for the terms that you associate with your business.
For new online business owners, SEO can be a complicated and challenging component of their online activities. It is best to consult SEO firm for help, who can make suggestions for SEO methods and activities that will boost your rankings, like link building or guest blogging.
Without knowledge of SEO strategies, you will find your business amongst the 90% of businesses that fail online.
Duplicate or Unuseful Content
‘Content is king’ – This phrase is definitely true in online business. More and more consumers are relying on content – not products – to determine whether or not a business is worth their attention and investment. One way that differentiate your business from your competitors is by acting as a source of original content that is helpful and interesting for potential buyers.
Plan on using content marketing to promote or supplement your website, make sure what you are doing is original. Don’t simply scrape content from other sites. Make sure everything you do should be helpful to your customers and should provide them with value – not simply create noise.
Not learning Important skills or concepts
Even if you are an experienced business owner with a appropriate location, you will probably learn very quickly that selling online is different than selling in a physical store. You will need to learn a lot of new concepts, terms and skills if you plan to succeed online.
These skills can range from learning to program or write code for your website in HTML or CSS to creating and evaluating A/B tests that relates to Conversion Rate Optimization.
The best way to learn about online business is by reading guides, articles and blog posts from industry leaders or internet marketing companies who provide invaluable advice on everything from creating a new ecommerce store to properly marketing to your audience.
Lack of maintenance
After your website is up and running, the job is not done. Internet trends and technologies are constantly changing, and your website needs regular maintenance.
Keeping your website updated on regular basis to ensures that you are providing up-to-date information about your products and services.
Without regular site checkup, you run the risk of losing your top rankings and the competitors will out-rank you.
No Social Media Presence
Now one common method of marketing is social media marketing. Social media sites like facebook, twitter, linkedin, Pinterest and many more can help new customers to find your website.
Facebook and Twitter also have targeted advertising options that allow you to spend little and earn more.
“Don’t put all the eggs in one basket” – This saying absolutely applies to social media. These sites should not be the only way that you make people aware of your online business. Try to include social media as part of a bigger marketing plan.
No Support System
Sometimes, you need a little help or support in selling online. The advice and guidance of proven internet marketing company might be the key to success for your online business. These companies provides a variety of services, from optimizing your site to rank more highly in search. They can also helps in building links and maintaining your social media presences.
This “support system” can keep you away from making bad decisions and might be the key to establish your brand.
Conclusion
Ways to prevent online business failure:
- Plan Ahead
- Use social media
- Identify ideal clients and consumers
- Craft a concise and compelling message
- Frame selling, marketing and promotional strategies
- Seek professional advice and have support system
- Consistent review on competitor’s strategies
- Have the necessary marketing materials
Content Written By Kanchan Kathayat - Vskills Intern Mata Sundri College For Women (DU)
