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6 Reasons Why Online Businesses Fail and What To Do About It

Starting an Online Business is very exciting and obviously you are so enthusiastic about it. 

You heard all the hype how others have made billions of dollars without stepping out of their bedroom. You visualize that you have this amazing products or service & people get online and buy them while you are enjoying at home or beach or golf course.

Truth be told, it doesn’t happen like that unless you put in the hard work and avoid the mistakes over 95% of the new online business owners make. The good news is that you can avoid these mistakes and get to the top 5% who succeed online.

Here are the reasons for failure and what to do about them?

  1. Start a business you never understand and / or start a get rich quick business. – You will need to understand how your business work and the market. This is not rocket science, but you have to understand. Lets face it… How can you recommend something if you don’t know about it or not sure about it. So, remember when you evaluating businesses, stay away from the opportunities that you cannot understand. It is interesting to know that none of the self made millionaires got rich by choosing get rich quick schemes. Even if they did it will be short lived.
  2. You are just trying an online business. – If you start out like this, I am sorry to disappoint you, but you are setting yourself up for failure. There is no try, you either DO or DO NOT. So, my advice is if you decide to start online home based business, have faith, focus and do what you got to do.
  3. You are treating the business like your job. I have heard someone saying that jobs acts as mind-poison for business. The reason being in a job people have an “Entitlement Mentality”. People believe that they are entitled for certain benefits because of certain reasons. When you get into business you will need to have a “Results Driven” mentality. Take personal responsibility for your actions and non-actions.
  4. Not investing time to learn Marketing, Understand the Products and Build Relationships. – You need to invest time to these three key areas. Do not think it as wasting time; you are investing your time. If you nail those you will be leveraging your knowledge for many years and you may take the knowledge to any other business start.
  5. Focusing on MONEY rather than CREATING VALUE for your market. Only way you can succeed is by creating more value than the amount of money you are charging. Find a group of people who have a need and help them in a high quality way so that they get more value than they paid for. You ever wonder why people come back for repeat purchase. Well, they got more value and that create trust.
  6. Don’t have a Coach. – People who earn a lot of money have great coaches. Get yourself a coach and invest time and some money on training.

In summary, choose a business that you understand with a proven concept. Make sure the online business you are starting is something that works and will be around not a flash in the pan. Finally make an investment on a coach and a proven training system.

What do you think? Please share your comments and questions with the community here.  If you enjoyed this article then feel free to share it with your friends on Twitter right now. It’s easy to do, just click that little green “retweet” button above this post today. Much appreciated

 

About the author: Damayanthi Jayasinghe is a Online Marketing Coach helping struggling online marketers to achieve their dreams and goals.

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{ 1 comment… add one }
  • ThereseMiu February 9, 2010, 5:58 am

    Damayanthi,
    It is always GREAT to remind ourselves the fundamentals of business offline or online exactly what you outlined here, “You will need to understand how your business work and the market” I have personally have had a total of 3 business before age 29. And all business I was passionate about the product and service we provide.

    Although, I was faarily young innocent and frankly impatient I really needed to learn this principle you mentioned here “Focusing on MONEY rather than CREATING VALUE for your market.” This was a STRONG KEY that I needed to do and did not learn about it until later.

    I also finally invested on a coach which was a worthwhile and WISE investment.

    Anyway, Thank you for your profound insights and I'm looking forward to reading more of your posts.

    Love & Light
    Therese Miu

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