Reasons Why Many Online Businesses Fail

[Jasmine]

A lot of us want to build a profitable online business and make a lot of money. However, majority of us fail. Here are some possible reasons why many online businesses fail.

Some internet entrepreneurs fail because they try to build their business from the scratch, which may prove as a big mistake. The idea that is not yet tested in the market might fail. Many online entrepreneurs believe that coming up with a new business idea will make them succeed. Some ideas might work out, but majority of new ideas fail.

There are some internet marketers, who set up their first online store without doing proper research. They don’t know whether there is a market for their products or not. Therefore, the first question you should ask about your business is whether there are any customers interested in your product.

 

[Sotherefore]

Your chance of failing in an online business can increased by 75% if you do not have a good understanding of what you are doing. That is what a lot of people are doing and they believe that making money online is something they can do without having to go through a learning process. In this way most of the fail.

 

[kayode10]

It is possible to fail in online business if you are not following a proven strategy. Another thing is that you are going to fail at online business when you start with the wrong mindset. Some people believe that you can start making money the first day you start online business which is not the case most of the time.

 

[btaliat]

It is easier to fail as a business owner if there is no set objectives for the business. A business owner must have set objectives on where th business will be in some specific years. He must also work with some teams that have the same value and inspiration with him not to fail.

 

[kayode10]

An online business will fail if you don't have the necessary things you can use to make more sales. Take for instance, if you are an affiliate marketer, it is very important to have keyword research tools. These tools will help you to identify keyword with less competition and take advantages of them. You also need a tracking software to determine where your traffic are coming from.

 

[Mika]

Being too much complacent is also one of the major reasons for business failure. I see a lot of people very complacent about their business, which result in not working hard to build the business. Having high expectation can also cause the business to fail. High expectations means expecting too much by doing too little.

 

[Chibson]

I have seen many people that started various online businesses but at certain stage it failed and there are some that succeeded also. one thing you must understand about online business is that it can take a whole lot of time for you to start seeing any profit but with persistence and consistency you will definitely get it right provided you know what you are doing. A lot of people venture into several businesses they do not have proper knowledge and understanding of how it works and operates and this is one of the major reasons many people fail in online businesses. It is therefore very important that before you venture into any kind of online business you look for network of friends or people with like passion. Online business requires a whole lot of people for you to succeed and this is what you must do to stay ahead of your game. Making research and staying in the network of people that are interested in the kind of business you are doing will definitely make you to succeed because you will be rubbing minds and sharing ideas together. This is why it is important for people to venture into various forums that discusses about business.

 

[Mandy96]

This applies generally to all types of business be it online or offline. But speaking of the ones that are being done on the internet, it really requires one’s attention in order to make it a success. Imagine someone that does a forex exchange business and he or she thinks that there is no need to be frequent online, how will such person be informed when it is the right time to invest, this might sound somehow complicated to some people but I am quite certain that the people that are into this job would understand me more better or lets state an example of someone that works as a freelancer on the internet, there is no doubt about it that if you do fail to be stable online there will definitely be failure in the income

 

[funmi]

There is huge difference between offline and online type of businesses. The offline business most of the time do not require much intellectual effort as we have seen so many people who has not really seen the four corner of a higher institution of learning doing so well in business. This shows that the offline business may at most require some level of skills either semi skilled or even unskilled attributes to operate successfully. Anyone who is well skilled will aswel do excellently well in business mostly if such a person is doing the type of business they love to do and that they have full knowledge about.


But it is all a different ball game for those that want to run their business entirely online as their are so many things to put into consideration before setting up an online business. The online platforms are truly not new t for everyone, but they are for those who are learned and well robust in how to manage the internet.

For one to be successful in operating a business online one must b ready to learn new things and must equip his or herself with the right information. Online platform are for hardworking people.

 

[Stena]

Just like offline businesses, online businesses are bound to face challenges or fail if not effectively managed.
Online business may fail for one or more of the following reasons:
1) Poor planning: any business that is not well planned would certainly not last long. planning in business is like laying the foundation of a building. Poor foundation would mean possible collapse of the building in future, same thing for a business with poor planning. It is important to take time to know the rudiments of the business, know the possible problems the business may face and think of better strategies to handle them.
2) lack of skills: it is impossible to make it big in an online business which one is not skilled at. A foreign exchange trader who has acquired skills in that aspect is sure to record success. You cannot delve into a business just because others are doing it. Whatever online business you want to take up, be it graphic design, coding, writing, affiliate marketing, programming, etc, it is very essential to acquire skill in that aspect. This is what would make you employable.
3) lack of consistency: there are people who want to be a jack of all trades. Today, they are into software programming and tomorrow they decide to blogging. Inconsistency has a way of not allowing one get his head in one game and make the best out of it.

 

[Kingsley]

One of the reasons associated with this type of issue is the problem of having too much expectation or setting up unrealistic target. The problem i see with people setting up business these days both online and offline is the quick expectation of returns and when things are not working the way they expect than they will begin to feel discouraged and the next thing that will happen to them is that they will start feeling a need to back down from the business. One thing we all must realise is that it is not easy generally. Life is all a gradual process, we shouldnt expect things to start working immediately we start working on it. I have seen people who have been consistent with their business and they stood their grounds even when times are hard and today they are seriously reaping the dividends.

I remember the first year I planted cassava and maize. In fact that year was very terrible I suffered terrible loses, the market was not favourable then and the maize did not sell very well in the market due to the large scale importation that year. I still persevered then 3years later after that year I make a huge profit. It also happend too with my trades in crypto currency.