subject: Why 9 Out Of 10 Online Businesses Fail Within 3 Months. [print this page] According to the Business Matters magazine, 9 out of 10 online businesses fail within 3 months after they open shop. That's a startling statistic when you realize that out of 10 online businesses only 1 will succeed and become profitable.
1.5 billion people visit the Net on a daily basis. Given that number, it seems impossible not to make money and profit from this incredible large and diverse market. But the truth remains that setting up a dotcom is no guarantee for success.
There are many reasons that could contribute to the failure of an internet based business, but according to the magazine Business Matters, there are 4 important factors that you should avoid if you want to be the one that succeeds out of the 10, and here they are:
1.Keep up with technology:
Technology is changing at an incredible pace. Every time there's a new product that hits the market, the savvy businessman or businesswoman will always jump at the idea of using the product to further develop their business model and increase their market share, visibility, and profits.
2.Understand what the search engines want from you:
According to a Google research, 90% of its users never go past the first page of the results. If your site happens to be on page 2 of a search result, there's a high probability that it won't be visited. The trick here is to know how to structure your website so that the search engine finds it and ranks it high enough to be listed on the first page.
3.Focus on your customer:
Your customer is the soul of your business. Without a customer base you cannot sustain a business online or anywhere else. You need to pay close attention to the needs of your customers, understand their expectations, and anticipate any problem that could affect their relationship with you. You need to keep an open channel of communication that you can use to measure your customers' level of satisfaction and overall experience dealing with you and your business.
4.Be Resilient:
Running a profitable business can be a satisfying and exhilarating experience. However, given all the constant changes in our culture, society, technology, and Internet, there's always the risk for something to have a negative impact on the your business. The solution here is to keep a strong network of people and resources that you can go to if you yourself don't have a solution for the problem.
Remember, running an online business is pretty much the same as running a regular one. Many brick and mortar businesses have failed and closed down as well. The reasons could be different but there's always a reason. Don't let failed businesses bring your enthusiasm down. Learn from their mistakes and remember the 4 points I discussed above.
