5 Mistakes That Kill Online Businesses (And How to Avoid Them)
Launching an online business can be complicated. It’s hard. Mistakes happen before launching or even when running a business.
Some serious errors might cause a business to fail before getting off the ground.
Let’s say you’re headed toward starting a profitable blog or online store, but there are obstacles.
If you find yourself in one, it could not be good for your company.
That’s why I wrote this guide to help you avoid those mistakes by pointing out what the mistakes are and how to avoid them. Sooner than later.
I will talk about the 5 most common mistakes that can hurt your online business, and I’ll give you some tips on how to avoid them.
Being aware of these blunders can help you maintain the strength of your business, regardless of whether you’re just starting or have already started to grow.
Table of Contents
· Anyone Can Start a Business, But It Doesn’t Mean They Should
· Mistakes Happen: Choose Either to Learn From Them or Ignore Them
· The 5 Most Common Mistakes That Kill Online Business (and How to Avoid Them)
∘ Mistake #1: Not Doing Research/Ignoring Customer Feedback
∘ Mistake #2: Selecting a Niche You Know Nothing About
∘ Mistake #3: Lack of Focus/Interest
∘ Mistake #4: Not Investing Time/Money (or Both)
∘ Mistake #5: Not Adapting to Changes
∘ Final Thought
Anyone Can Start a Business, But it Doesn’t Mean They Should
Starting a business is an exhilarating and unpredictable journey. It’s never a linear walk and is never a “sweet walk in the park” sort of way.
Most importantly, it’s never a rich-quick scheme. It’s work. Hard work.
100000 times more work than a regular 9–5. So, no is not for everyone.
It has its ups and downs, moments of glory as well as moments of doubts, and of course moments of failure.
You will not see a dime in the first couple of months. Probably a year or so. You will not be able to sleep or eat. Or even have a social life.
You will probably have to ditch spending money on fun stuff to save money for your business. Or even the opposite.
Spending your entire savings for your business and going into debt.
Yeah, is not fun. Yet, is rewarding to those who can make it to the “finish line”.
With that being said, not everyone should embark on the journey of starting a business.
It doesn’t matter if you can start with no money or with a low budget. Or even if you have a big fat checking account to spend on an expensive masterclass.
I am not saying what to do with your money, just to be clear.
What I am saying is that it takes more than just having resources to start a business.
It’s why not everyone should start a business regardless of their financial situation.
Trust me, I am speaking from my personal experience. The long journey ahead will make you think if you should quit or embrace each moment of it. Even if those moments are of doubts and failures.
Mistakes Happen: Choose Either to Learn From Them or Ignore Them
Mistakes happen every day in life simply because we are human. And, you and I can do something about those mistakes.
Two things can be done regarding mistakes. Those choices are either to ignore them or learn from them. When it comes to our daily personal life, it’s a choice.
But in business, mistakes can cause an unwanted outcome such as a loss if we choose to ignore it and not learn from it.
The opposite of it would be if we learn from it to avoid it in the future then the outcome is different.
Solve the problem, and see your business thriving.
Ignoring a mistake can be a costly lesson that we cannot afford to ignore. It must be learned and avoided at all costs. Or your business will be doomed to fail. See mistake #5.
The 5 Most Common Mistakes That Kill Online Business (and How to Avoid Them)
Here is a list of the 5 most common mistakes that you can avoid before it kills your online business.
Mistake #1: Not Doing Research/Ignoring Customer Feedback
Doing research is crucial and a major component of any business. It must be done in the early stages of the pre-launch of your business.
Starting a business blindly can lead to too many costly mistakes.
Trust me, I have made this mistake too many times. Shameful, I know.
If you start a business and there is no demand for it, not even competition, or worse too much competition then your business idea is not a profitable one to start with.
For example, selling digital products sounds great because is easy to create and only list them once and not to worry about any inventory. However, there is too much competition for digital products.
Unless you see a need no one has tapped. Recently, the demand for digital products in the ADHD niche has increased rapidly because there is a market for it. Competition is healthy too.
In regards to customer feedback, it must be done also while the business is in the pre-launch phase (or even after).
Customer feedback can tell you firsthand what works and what doesn’t. It also gives you ideas on any needed changes that can be done to make it better.
They can tell you what needs to be changed and maybe even give you a what is the price range you should be charging for your product or service.
How to Avoid This Mistake:
Do market research, and know what is trending. Avoid any trends because they come and go. But don’t ignore the changes.
Use platforms such as ExplodingTopics.com to know what is trending and if there is an audience for the type of business you want to launch.
See if any of those trends can have the potential for long-term stability.
You want something long-term.
However, pay attention to what is going on around your area and see if there is a need and if there is no one that is solving that need.
This is why having customer feedback and surveys are always extremely helpful in the pre-launch phase.
Mistake #2: Selecting a Niche You Know Nothing About
When selecting a niche for your online business, don’t go for trends just because it's selling like hotcakes.
If you know nothing about it or worse not have any interest in it, you will get bored and not enjoy every minute of it. You will hate it.
The niche you choose must meet three criteria for your business to scale and grow. Those are passion, interest, and profitability. And also it must include any relevant experience.
With experience, you can gain topical authority within your niche. You will be seen as an expert.
If you have experience (from a hobby or professional) and you love it and have an interest in it then go for it. Just make sure there is a demand for it.
How to Avoid This Mistake:
Again, research the niche you want to be in. Make sure your niche meets the criteria of passion, interest, profitability, and most importantly experience.
Never start a business in a niche you know nothing about.
If you have no interest and have no intention to learn about it then you will be wasting time and money. You will hate it and you will probably call it a scam.
So, don’t bother.
Find something you like and if there is a need and a market then your chances of succeeding are good.
Mistake #3: Lack of Focus/Interest
This goes back to mistake #2. If you lose focus or interest because you don’t like the business you’re in, it’s more likely that you will try many other business ideas because you fall for the “shiny object” syndrome.
This is an extremely costly mistake because you will spend money on courses, tools, and platforms you will probably not know how to navigate or no nothing about.
I spent hundreds of dollars and probably thousands in courses throughout the years because I was having the “shiny object” syndrome. I wanted to try so many things at once.
I didn’t know back then what was my interest. Then, from my experience, I realized I have a passion for writing and affiliate marketing. And, I was able to learn more about it. It’s something I love doing.
So, I started my blog and learned the skills of affiliate marketing. I don’t get bored. It’s hard, yes. But I love it.
How to Avoid This Mistake:
Be laser-focused on one thing only and make your intention to master it. Become the expert in your niche.
This is why experience in your niche is crucial because you will be able to use your skills and knowledge to be a problem-solver.
A problem-solver is a skill that is hard to obtain. And is a skill that can be monetized. So, focus on one business idea and don’t lose interest. Master it.
Mistake #4: Not Investing Time/Money (or Both)
Having a business doesn’t have to be expensive to start because many platforms allow you to start with a freemium account or even 100% free such as YouTube, for example.
However, that doesn’t mean you will not need in the long run to invest in resources such as time and money.
Time is the most valuable resource we have and if we don’t manage it wisely, we lose money and time. Time we don’t get it back, so use it wisely.
Learn smart ways to increase your productivity to avoid burnout and to avoid losing money.
You’re starting a business to make an impact, serve people, and of course for money.
In business, you will also lose money. Try to avoid not to lose too much of it and avoid doing this repeatedly.
Of course, in the beginning, you probably won’t see a dime. However, if your business is getting traction, then you’re doing something right.
Just don’t lose focus. Invest your time and money where needed such as outsourcing, so you can focus on the most important task which is running your business.
How to Avoid This Mistake:
Make a schedule, and use tools such as Trello. Some tools are free. Learn how to use automation.
Prioritize your projects from much importance to less importance. Those with less importance can be delegated or outsourced.
If money is the issue, then try to be resourceful. Begin by searching online for grants, loans, crowdfunding, investors, and friends or family who might be willing to help you.
Somehow you will obtain the funds you need to grow your business. Make a business plan for your business on how can use it wisely.
And, don’t get sidetracked. Don’t try to do multiple tasks at once. So, organize your time adequately.
This will help you to avoid burnout and to stress less.
Focus on one thing at a time and learn to make it better until you master it. Write down what works and what doesn’t and the steps you took for each (good or bad).
Attend a masterclass and network with others that can help you scale your business. Remember to invest your money and your time wisely.
Mistake #5: Not Adapting to Changes
This mistake caused a major retailer in movie rentals to go bankrupt in 2010. I am talking about Blockbuster Video.
This company faced fierce competition from a newcomer: Netflix. Netflix was a new company that was not only innovative but also affordable.
It attracted millions of users to Netflix. BlockBuster decided not to pay attention. Huge mistake.
Unfortunately, BlockBuster ignored the changes and not adapting to those changes caused them to go bankrupt.
How to Avoid This Mistake:
First, never ignore your competitors. Always pay attention to what are they doing and how your company can make it better. Get creative, and find ways to improve your service or product.
Get feedback from your customers and don’t ignore those feedback. Their feedback can make your business thrive and put your business ahead of the game.
BlockBuster ignored the changes and the rest is history.
Don’t be like BlockBuster. Be an innovator like Netflix.
Final Thought
Starting a business is exciting, exhausting, and challenging. It’s also unpredictable. You as an aspiring entrepreneur must be ready and aware when challenges arise.
Most definitely be ready when mistakes happen. And, never ignore them. If you can’t solve the mistake, hire an expert to help you resolve it. And learn from it to avoid it from happening again in the future.
Fear of making mistakes should never stop you from pursuing your dreams of starting a business. It’s normal to have fear, but don’t let it control you.
Learn from it, and see it as a blessing in disguise. Sometimes, mistakes are also meant to happen.
It will open doors for innovations and opportunities. For example, the case with Netflix.
The co-founder of Netflix, Reed Hastings, was charged with a late fee from a movie he rented on Blockbuster (go figured). A $40 late fee. Ouch!
So, take Netflix as an example of how innovation can come from one single mistake and turn it into an awesome opportunity.
Thanks for reading!
