The market for online businesses has been growing steadily for years now. Mostly, because there are so many possibilities to open your own business online – especially with all the innovations and the help of online templates, plugins, and tools. Surprisingly, it is possible to launch a fully functioning online store in less than a day. Crazy, right?
So knowing all this, why would you not want to start an online business? Sure, it can be risky – as any other business, it has its advantages and disadvantages. On the one hand, you are responsible for all of the decisions, you can decide when you want to work, and you are your own boss. But on the other hand, if you fail to generate enough traffic for your online business, you might end up bankrupt. It is a huge responsibility.
And there are a lot of reasons why online businesses fail – as the eCommerce market is constantly growing, it becomes more and more difficult to compete and be noticed in the crowd of the same products or services. Therefore today, we would like to share the main reasons why online businesses fail and what kind of actions you should avoid.
Reason #1: Not Enough Emphasis on SEO
It is crucial for any online business to work with Google Ads – if they want to be successful and avoid failing. If you are not advertising on Google Ads, the biggest and the most frequently used search engage in the world, how are you supposed to generate traffic for your website?
Another problem is when you are using this form of advertising, but your results are simply not showing up on the top of search engine results. A Prestashop module with custom banners & display ads can help you out with that. To show up on the top of a search page, you need to do much more than just create a few Google Ads campaigns with several keywords.
You need to be using and experimenting with all of the features, tools, and possibilities that Google is giving you. And if you think that it is difficult, you are quite right – that is why you can use the mentioned module to make it easier or consult with an agency that works with SEO until you find what Google Ads strategy works best for your online store.
Reason #2: Lack of Investments
Not willing to invest in your own online business is actually a common mistake that new entrepreneurs make with their startups. As mentioned before, the market of online businesses is growing so rapidly because it is super easy to launch a business in less than a day, and thanks to all of the tools and templates, you can launch a proper website without spending too much money.
And at this point, the ease of building a website so fast and so cheap creates the illusion that it is possible to run your business with almost no investments. But that is hardly true – once you launch an online store, you need to put in a lot of work into it, which means spending a lot of time and at least some money. All in all, how will people learn about your business if you do not advertise it or do not have products in stock?
The solution to this problem is to, first of all, understand that if you want to run a business, investments are inevitable. Once you change your mindset, it is time for you to plan your budget and decide how much money you can spend on your business in a period of time. Plan all of the resources you will need to keep your business running properly and get out of that stagnation state.
Reason #3: Inability to Deal With the Competition
It is true that when you start a business, you should not start inventing a bike – it is very unlikely to come up with the idea that no one has thought about before. Surely, a slight possibility is there, but even if you were a genius inventor, how can you be sure people will want and need your product or service? And how much money will it cost you to create and launch it in the first place?
The competition in the online business market is harsh nowadays – and that is something you need to accept. The market is changing, so you need to change and improve your strategy as well. If you picked out a product to sell and did not establish a more specific niche for it – this was your biggest mistake. You need to find ways to outstand your competition because the price can never be the only thing you are competing for.
So to solve these issues, pick a niche. Customize your product or service. Make it original and unique. Create added value to your business – start a blog, share your knowledge, reveal unknown and untraditional ways to use your product or service, advertise it on social media, and spread the word.