1. Taking too long
Timing is everything in business and therefore speed in business is crucial. When a business opportunity is realised, it is common to research the market and understand the competitors in the industry. Research is great but taking too long to launch the business can result in missing the window of opportunity. Instead of trying to create a perfect business idea, better to launch a “good enough” and work out the issues as you go along.
When running a business as well, being slow could also mean missed opportunities during key sale periods. Responding to an inquiry too late could make a difference in achieving your revenue goals. Using platforms to help you launch business and start shipping your orders to customers can provide the jumpstart you need to start an online business.
2. Doing something you have no passion for
If you don’t have passion for the business you select, learning and selling will seem like homework, and the business will not be able to grow since it will be more difficult to put in the necessary effort. For example, if you are selling plumbing parts online but don’t really care about the products, it will show in your customer service, quality control, and many other areas.
Start an online business that you are passionate about if you want to be successful. You must be fully knowledgeable about the product or service that you are selling. The more you enjoy running your business, the more successful it will be.
3. Looking to make quick cash
It is often tempting to start a business just because you see the potential money it could make. But it is crucial to have enough dedication and commitment even when profits aren’t high because not every business is profitable in the beginning.
A common misconception is that running an online business is easier compared to a traditional “brick and mortar” store. Because online companies have lesser overhead, many assume that they would make profits in lesser time. However, the reality is that building an online business is no less difficult than it is in “the real world,” and takes energy, time, effort, and planning.
Even Amazon wasn’t immune to the loss of profit in the first year, and despite being in business since 1994 and with over $1 billion in sales by 1999, the website didn’t make a profit until 2003.
4. Being unprepared
After deciding to launch an online business, you still require a business plan that includes the following details:
- Background information
- Confidentiality
- Products and services
- Industry status
- Marketing analysis
- Production and quality assurance strategies
- Financial projections
- Executive summary
Even though many components of your company may change over time, you need to start with a solid plan to avoid becoming disoriented. If you need funding, having a business plan makes it simpler to pitch to investors since they will have a roadmap for how you intend to utilise the funds.
5. Dismissing negative feedback
When launching a new online business, it is tempting to listen to only your supporters and ignore your critics. While it is important to be positive, dismissing negative feedback or criticism is a mistake. It may sound strange, but there can be benefits to negative feedback:
- You can understand better your target market.
- You can modify your offerings.
- You can practice providing excellent customer service.
6. Neglecting Legal stuff
Some online businesses may skimp on the legal issues regarding their practices. Every step of your business may require an applicable legal document. For instance, if you are looking into what type of corporation you want to file, you can’t skip the incorporation process, which is a common mistake made by small businesses. If you want to form a SDN BHD, then you will need a SDN BHD operating agreement.
7. Dropping sales leads
Every online marketer recommends you start an email list the day you launch your business. Many ignore this advice, and those who follow it soon forget they even have an email list of people who want updates on your business.
Email marketing is powerful and it works; statistics show that it is one of the highest forms of ROI for every ringgit spent in acquiring email contacts, which means that your subscribers are your best customers.
Market to your subscribers with updated emails, special offers, and other content that will inspire conversions. Don’t forget to also utilise social media to generate leads too!
Conclusion
The Internet has created unprecedented opportunities for individuals to start their businesses. If you have an idea for a business, go for it by launching your website and immersing yourself in best practices. Get to know your competitors, research your industry, and create a business plan that gives you a roadmap to sustained growth.
Keep in mind that learning what not to do is just as important as knowing what to do. By avoiding the 7 mistakes outlined above, you will give your business the best chance of success.
