Each year new businesses are established. However, only less than 30% go beyond the six-month mark. A large percentage of them collapse, and sometimes the owner takes long to recover. The parameter is the same in the virtual arena. Not all businesses launched online manage to succeed. Some of those joining the list of failed ventures belong to people with massive experience in the commercial sector.
Nevertheless, this information should not scare you to feel like you will start a business and fail like the rest. Whether you create an online store for free or use the paid option, you have equal chances of succeeding or failing. Here are three causes of online business failures:
Ignoring the customers
When you think about entrepreneurship, you recall the business classes. Your teacher told you entrepreneurship involves coming up with ideas by studying the market and transforming them into a business opportunity. Well done, you have superbly done this part. However, business entities exist through retaining a healthy relationship with the customers.
For you to remain in business, you must continue connecting with your customers. This means giving them an ear to understand what they want and the improvement they need to see on your products. If you ignore this aspect, success will remain elusive.
Lacking value proposition
It is one thing to be in business and another to provide value to the customers. For your business to exist in the long run, you need to have a value proposition. Customers require to know what you are offering that is different from your competitors. However, most webpreneurs create an online store for free or pay for the same and go to rest.
While you may have hyped the market on your first days, if you lack a value proposition, you will slowly be handing over the current customers to your competitors. In the end, you will not have an option than shutting down your site.
Inadequate identification of your product and customers
While it appears last, this factor is the backbone of business failure both online and offline. Products exist due to providing a solution to customer needs. So, if you want to succeed, you must be able to come up with the right product and identify the right customers. Remember, you cannot have a product for everyone. Hence, if you want to succeed while selling online, know your customers and provide them with the right products and services.