We have talked a lot about online businesses and what they are and in the last post we discussed some tips for starting an online business. In this post we will discuss why a lot on online businesses fail. Sadly to say but online businesses fail at a higher rate then regular brick-n-mortar businesses, and there are a few reasons for this which we’ll discuss below.
Starting a business is not very difficult but growing and sustaining success in a business is hard work. It can be done and if you have the right attitude and leadership skills you can succeed in any home based business. Being an entrepreneur is not for everyone and sometimes it takes people falling on their face to figure that out, but for the ones that build a business from scratch they understand there are few things more rewarding than that.
To see something you started from nothing to blossom into something is very rewarding. The people that have done this usually like to give back because they know how hard it is to get to the other side of financial success and they want to help others get there as well. The journey is not for the faint of heart but it is attainable for those that really work at it. So below we will discuss several reasons why online businesses fail.
Starting a business whether that be online or offline is not easy and there is a lot of risk involved. When a person starts a business very few think about it not doing well, but the truth is most businesses fail. Online business fail at a higher rate then brick-n-mortar businesses.
No matter what type of online business you have there are certain tips that can help you have greater success. In this post we will discuss five (5) tips that will help anyone thinking of starting an online business to succeed. Every business even offline brick-n-mortar businesses can use these five tips to grow.
Starting any business is a risk and you must way the risk reward before jumping into business, but from our experience online businesses are usually easier to get into than brick-n-mortar businesses. Now there will always be exceptions to this rule and I know of a few online businesses that cost as much as getting a physical business.
On average though starting an online business is easier to set up than a brick-n-mortar business. The risk are similar and the failure rate is actually higher because of the set up process. With it being easier to get into an online business the failure rate is higher. So this is an issue we will address in a later post. With that in mind though there are good reasons to start an online business and we will discuss five of these reasons below.
What is a Online Business? We get this question a lot.
Depending on who you ask you may get different answers and also get a little confused by the terminology often used in place of online business. In essence an online business is a business that does their company activities on the internet. Even if you have a brick-n-mortar business, if they do most of their business activity online then they too are classified as an online business.
Often times people interchange home based business and internet marketing with the term online business. Though these terms have similarities you can have a home based business without it being an online business. For instance if you are a nursery school business owner that operates their business out of their home then you are a home based business but not a online business. With businesses such as daycare’s, bakeries, computer technicians, etc. they can all happen at your residence but this doe not make them a online business, since the majority of business activities do not take place online.