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Reasons Why Your Online Business Is Losing Money

Last week, we discussed why businesses fail, we highlighted several reasons. Below is a continuation of reasons why businesses fail.

1. Busy But Not Productive

You attempt to grow your following on Facebook and Instagram but instead of being tactful and succinct you spend entire days on there browsing aimlessly. You spend hours working on your business cards, fancy website and all the glamorous part of the business without paying heed to the gritty and tactful part of the business.

2. No Business Goals

Many online businesses fail because they do not have any goals or expectations. Yes, you may have a vague goal of “make money by selling online,” or may expect to be profitable by offering a service or piece of software, but you should have some very specific goals beyond that. For example, using our baby supplies example, these might be some realistic goals:
Make N2,000,000 a month from online sales
Sell 500 packages of cloth diapers per month
Reach a 10% conversion rate by the end of the year
Without one or more goals, you won’t know what you are striving for. Many online businesses fail to succeed because they never set these kinds of goals. Without goals, they may not have a clear direction for their activities, and may never do the right things to help turn a profit.
When you are setting goals for a new business, start small, and remember to be realistic. You may want to set a goal of making 25 sales your first month or reaching a set amount of profit. Once that goal is met, you can set a new goal.
However, make sure that you are doing the right kind of work to help meet your goals. If you set a goal to increase your revenue, but you don’t ramp up your marketing activities, properly optimize your website, or add additional products and services, you may find that your sales stay flat. For this reason, you may want to add a “by” or “how” statement for your more advanced goals – something like “I will increase sales 10% this month by adding 200 new products to my store.”

3. No Passion

Many people start or run online businesses that they do not have a passion for. In fact, most are bored out of their minds by their business. This can make them easily get caught up in a rut thereby leading to poor performance. This will, in turn, lead to a continuous loss of money.

4. Not Having A User-Friendly Website

A basic ingredient to run an online business is to have a well-designed website. You need to put everything regarding your business in your web pages. People will come across your business through your website. When they will visit your website, it should make a good first impression on them. This means that each colour, font, image, symbols, text, etc, elements you pick to create your website should impress the visitors.
Your website must hold all the information that your target customers want. It must have pages such as About Us that tells all about what your company and business does. Tell how your business stands out in your niche market. There should be details about the products or services you sell.

Also, mention the specific solutions that your business provides to the customers. Makes sure that your website has other pages like Contact Us that has your company’s physical address or any other address.

Pages such as Terms and Conditions, Privacy Policy, etc. must also be there as part of your website. But most importantly, your website design should stand out in its use of design concept, colours, typeface and various other elements

5. |Poor Social Media Presence

Another reason for the failure of many online business startups is that they simply ignore the power of social channels in promoting a business. In the modern world, people use social channels to get updated information. They communicate with the world using a variety of these channels including Facebook, Twitter, YouTube, Instagram, Google+, and many others.

Your potential customers are mostly present on different social media. Make sure that your business has a dedicated social media page on most of these channels. Then, post content regarding your company, business, products or services regularly. The content should be such that they can interact with your business. You will be surprised the number of sales other businesses get from social media. Social media is so powerful that some businesses use social media soley.

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