Many are drawn into the allure of starting an online business no matter how small, I mean you get to be your own boss, plan your business around your lifestyle, quit your gruesome 9 -5 job.
The Online Business world is really not what you think, what you think you see is far from the truth about the online business world.
A whopping 90% of all online businesses fail in the first 120 days according to research done by fortune.com.
There are so many reasons online businesses fail in Nigeria, below are some of these reasons:
1. Lack of Commitment
Many people dream and talk about how they want to start an online business but very few are actually committed to starting, let alone running the business. As an aspiring online business owner, you are currently failing because you have not been able to start, waiting for the “perfect time”. Others that have started are failing because of lack of commitment and consistency. They do not treat it as an actual business but as a hobby of some sorts that is why they fail.
2. Lack of Basic Business Knowledge
Advances in technology and online services have made it easy for almost anyone to open a business online. There are a variety of website platforms and shopping carts that allow you to sell products from your website
, with setup perhaps only taking a few hours. If you’re familiar with the internet and know a little bit about HTML, you may figure that it’s simple to set up and operate an e-commerce store – with no business background required.
Unfortunately, not having a general knowledge of basic business terms, or how businesses operate, might be your downfall. If you have a successful e-commerce store that is making a few thousand dollars a week, but you don’t know what your operating costs are, you may run out of money very quickly. Alternately, if you’re not keeping track of the profit margin on the products you are selling or tracking the costs of the sales you are running, you may be reselling products for more than what it cost to purchase them in the first place!
3. Not Analysing The Needs & Demands Of Target Customers Beforehand
Not analysing the needs & demands of target customers is yet another reason why 90% online startups fail to succeed. Remember, you need enough customers to buy your products or service, for your business to succeed. And that’s why it makes sense to evaluate your potential customer base before launching your new business.
You’ll need to present yourself as an attractive option to lure customers to your business.
4. Horrific Monster-Like Strategies
It seems like someone launches a new tactic, strategy or business model every week — if not every day.
The outcomes they promise are so tempting that it’s damn near impossible to resist trying them.
I mean, how can you turn your back on strategies that offer to “10x” your content, traffic, profits, and email list?
Here are just a few of the tantalizing offers that could drop into your inbox any week of the year:
Get 100,000 Instagram Followers
Get 10,000 email subs with Facebook ads
Build a 6-figure online course
Become a popular guest blogger
It never ends…
So you get scatterbrained and decide to try a little bit of everything. You take bits and pieces of powerful strategies and tactics from multiple mentors and coaches and blindly mix them together.
But in doing so, you inadvertently create a monster. A monster that’s destined to wreak havoc and destroy your business, your time, and your pocketbook.
I like to call this: “Horrific Monster-Like Strategies”
5. Not prepared to face failure
This is ironic because you are trying to avoid failing in the first place. So how does preparing for failure help you prevent failure? If you start an online business thinking that you will succeed without making mistakes or failing at something, it is better you don’t start the business at all because failure is the mother of success and always should be prepared for.
Johnny Cash, one of the most influential American musicians of the 20th century says; “You build on failure. You use it as a stepping stone. Close the door on the past. You don’t try to forget the mistakes, but you don’t dwell on it. You don’t let it have any of your energy, or any of your time, or any of your space.”
Napoleon Hill in his book titled, “Think and Grow Rich” says; “when defeat comes, accept it as a signal that your plans are not sound, rebuild those plans, and set sail once more toward your coveted goal.”
Many people fail in their online business because they are not prepared to face the reality of failure and when it comes, it swallows them up. Failure is always an option and a stepping stone to success, be ready to face it if you want success in your online business ventures. Preparing to face failure means that you have thought ahead and devised countermeasures or you can manage a failing situation, learn from it and manage to turn things around.