Starting a business online is one thing. Guiding it to success is a completely different thing. According to Forbes Magazine, about 543, 000 businesses are created each month. The rate of business failure in this day and age is unusually high. Roughly 60% of businesses don’t make it past their second anniversary. The big question is: Why are businesses failing at this rate? Read on for the reasons:
Stiffer competition is the main reason why businesses fail when it comes to selling products online
The expansion of the internet and other technologies has enabled anyone regardless of location, religion, or academic and social background to start a business cost-effectively or even without paying a dime. This has led to the proliferation of businesses with the same model or selling similar products or services. Because of that, competition has become stiffer than ever before. Beating established businesses in this game is next to impossible if you don’t innovate. That’s why many businesses fail within the first year of inauguration.
Not implement SEO strategies is another reason businesses online fail
In this day and age, virtually everything is happening online. People want the convenience of buying and selling products and services in the comfort of their homes, even in the dead of night. And that’s what drives them to go online to buy and sell. If your website doesn’t implement both on-page and off-page SEO techniques, you risk losing your target audience to competitors. If that happens, there is only one way, closure of a business.
Mismanagement of finances can inhibit a business from selling products online
Most-first time entrepreneurs think that burning money initially is going to make their business successful. It always turns out to be a disaster, because they use up all the capital that was meant for expansion of the business. This normally happens due to lack of a plan. Always draw up a plan of how you’re going to prudently spend your finances. Don’t spend on unnecessary things. Focus on things that will certainly lead to sales for your business.
Lack of business goals can cause a business online to fail
If you want your business to succeed, you must have goals or expectations. Don’t just set goals, set realistic and attainable goals. For example, your goal can be to make $1000 in sales within the first month. A goal can make you work a lot more to realize it.
There are many other reasons why businesses fail, but these are the main ones. Know them upfront if you’re contemplating starting a business to avoid becoming a failure statistic.