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Five Reasons Why Online Businesses Fail By Craig Friesen
New online business operations are started every day world wide as more people seek the benefits of working from home. Whether the reason for starting a new Internet business stems from curiosity, need for extra money, or loss of employment outside the home the advantages of an online business can be extremely attractive. Unfortunately the statistics show that there are more casualties than successes in the home business industry. Before you call it quits, however, there is a popular adage that says knowing what the pitfalls are is half the battle. My intent with this article is to highlight five of the top reasons for online business failure so that you can avoid being another home business industry negative statistic. Reason #1: The online business was not a good choice. Few Internet entrepreneurs start their first online business with a firm idea of what they are going to make money from. The majority of home business owners will search for an opportunity because of a real or perceived need; since there are many thousands of Internet opportunities to choose from often what happens is the first one to attract a person's attention is the one they begin their online business journey with. Whether it is an enticing sales page promising the level of income that would address or exceed needs or the type of business matches a personal interest the process of choosing the online business may determine success or failure from the outset. Some opportunities turn out to be deliberate scams or simply "too good to be true". Other online businesses just turn out to be the wrong fit because some details were unclear until after starting or the entrepreneur misjudged their own knowledge of the business product or service. Reason #2: There was no business plan in place. It can be relatively easy to simply jump into a business opportunity with no business plan in place. With instant Internet payment options available to most people you can sign up to an online business opportunity in just minutes without having done any research or planning whatsoever. Of course it stands to reason that if you are responding to an advertisement promoting quick riches with little or no effort it stands to reason that a business plan would not be in sight because it shouldn't be needed. A business plan maps out the strategy for financing the online business as well as marketing and other important details typically put in place to turn vision into reality. If there is no business plan then either
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there is no direction or it rests in the hands of others. Reason #3: The business plan was not followed. With a business plan in place there should be guidelines and limits. Exceed your monthly advertising budget and fail to follow through on planned marketing should prompt the realization that either the online business is off track or the business plan requires revision. But unless the Internet entrepreneur is disciplined to follow the business plan they created it can quickly become a useless piece of virtual paper that has no real bearing on direction or success. Reason #4: There was no mentoring or support system in place. Everyone needs some form of support for their online business. A significant contributor to online business success or failure is the support received through means such as coaching, a friend who listens and provides feedback, or a business forum. Support in the home business industry can take many different forms so the lack of it entirely would be a clear danger sign to those looking to join an online opportunity. If an Internet business owner decides not to avail themselves of available support options then they have mostly themselves to blame if things do not proceed as desired. Reason #5: The intangible costs were higher than anticipated. Assuming even just a little conscientious spending, when tangible (i.e. monetary) costs are higher than bugeted there should be no surprises. That is what a business plan and budget is designed for after all - to make the decision to overspend a deliberate one. But in addition to the financial costs of owning and operating an online business there are less tangible ones that can just as easily spell defeat. An example of an intangible cost is the impact on family life caused by working from home instead of outside of it. The reality is that for some people or situations working at home creates interpersonal stress that was likely not fully anticipated and was not part of the picture when they were leaving the house for work. In conclusion, there are many reasons why an online business can fail but knowing about them means they can be avoided. Aiming for success a new or experienced Internet entrepreneur can research business opportunities before joining, develop a workable business plan and follow it, take advantage of the support available and monitor the impact of working from home.
Craig Friesen is a freelance writer and owns an online business from Canada. Internet marketing and home business articles have occupied some of his time and energy since 2004. Register for a free newsletter and read his business opportunity picks at http://www.topaffiliateprogramsmakemoney.com
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3 Reasons Most People Fail In Their Online Business By Koua Her
Despite all the progress made on the Internet today there is still a large number of people who fail with their online business. Here are three reasons that is true. 1. The first and biggest reason that a person fails with their online business is they do not have the skills it takes to be successful. No one is born an Internet marketer and the only way you will ever make any money online is the least master a couple of skills on how to do it. This is evidently harder than it seems and one of the biggest reasons why people fail. No matter how hard they try the just can't seem to get the hang of it. If you are going to build a successful online business you need to learn how to blog, how to build web pages, how to build a list, how to get traffic to your website, and so on. These are all skills that you're going to have to learn or you'll never make any money online. 2. The second reason that most people fail with their online businesses they do not have enough money to withstand the ups and downs of Internet marketing. It's very frustrating to be spending most of your efforts trying to get traffic to a website and not have any money to help you do it. Even a little bit of money can help you automate some functions which will allow you to increase your traffic flow sooner. Things such as submitting articles, using an auto responder, and things like this can really speed up the process when it comes to overcoming the lack of money you have invest in your business. 3. The last reason is people are busy and it's difficult for them to put the effort in that it takes to succeed. Most people will quit because it's just too hard to work all day with a job, come home and deal with the kids, and then get online and try to build your Internet business. This is understandable in many ways, but the reality is if you're not willing to do it somebody else well and they will pass you by. This is three reasons that most people fail with their online business. If you analyze the ones that are successful, you will see people who have developed skills, reinvested money back into their business and were able to put a consistent effort and over time to achieve their online success.
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