THE MAIN REASONS WHY NEW ENTREPRENEURS FAIL
Thousand of new online projects open every day. There are different ways how people intend to make money online. All of these methods are connected with sales. Business means selling. At the same time, all online entrepreneurship require investments. You have more chances to succeed if you have enough funds to develop and maintain your current business project. It is not a secret that 98% of new entrepreneurs fail in the beginning of their online businesses. Everyone strives to get a good niche in online market but only a few of them are aware of the factors that are responsible for the success in this industry. People think that online business is the easiest way to make money. These people are not conscious of the disadvantages and negative sides of making money online. If people with this type of thinking launch a new online project, they will definitely fail in the early beginning. I know what I am talking about. It is necessary to have some kind of experience in order to make some types of business predictions. Thus, new entrepreneurs are too unrealistic, and usually, they have great expectations about their future success.
1) THEY ARE UNAWARE OF A TOUGH COMPETITION IN ONLINE MARKET
There are multiple of methods to make in online business. Some people build online stores, blogs, video tubes, news portals, and many other types of online enterprises. All of these projects may be potentially very profitable. Do you know who makes millions of dollars making online business today? The companies that make huge revenues have started their online projects several decades ago. They are not newbies and they did not build their online empire in a few months. Do you know how many years has Amazon been in the online commerce industry? Amazon was established in 1994. It means that this company has been running its business for 22 years. Amazon is a giant but only a few people know about the efforts and a hard work needed to build such a great corporation. Successful bloggers have spent several years to achieve a significant level of personal success. Great blogs cannot be build in a few days. All people who run a successful business on the Internet are aware of a huge number of professional competitors. Consequently, everyone strives to provide their customers with the best customer support and high-quality products. Professional entrepreneurs study the market very carefully before launching a new project. Businessmen who have some experience in the online industry are more conscious of their competitors. Online business is easily launchable and there are millions of people who already offer people the same things. The number of physical stores in your city may be very limited. This is due to huge investments needed to launch a physical shop. Today, almost everyone can start an online business, and therefore, the competition in this industry is very huge. A company should be absolutely unique in order to survive in the online industry.
New entrepreneurs are usually maximalists. They consider that their business is superbly better than others. Sometimes their self-confidence is over-exceeding. New entrepreneurs tend to underestimate their competitors. New businessmen are not alert of the fact that their competitors have millions of dollars to promote, advertise, and develop their present business. Advertising online is not cheap. If you want to make a good promotion, you will need to advertise on popular web resources. Their services are not free. New entrepreneurs do not have money to promote and advertise their business. Some of them hardly have a few bucks to start a new project.
Competition in the online industry is very tough and new entrepreneurs are easily smashed by famous online giants in the beginning of their business way.
2) MAXIMALISTIC EXPECTATIONS
New entrepreneurs are newbies and a newbie is always very far from the reality. Maximalism is the main quality of every beginning online businessmen. They expect to make millions of dollars with making no efforts. Newbies are utterly inspired by the success stories of such web resources like CraigsList, Problogger, SmartpassiveIncome, and other portals that make good revenues. When you hear a story of someone’s success, it sounds ideal and perfect. People are not aware of the struggles a person had to go through to achieve that level of success. We see people who make billions of dollars. Some of them were extremely poor in their past. Look at Joan Rowling. Have you heard about her biography? Success came to her when she was already a mature woman. Most of her life she was very poor. There are some people who became very rich in their early years. Bill Gates and Mark Zuckerberg for example. These people did not merely waste the time of their childhood. There were not like other children. Bill Gates spent ages of his childhood reading and studying different encyclopedias. Thus, no one becomes rich in a short period of time. Different success stories may sound very inspiring, but the reality is hidden from our eyes.
Unrealistic expectations never helped anyone to achieve success. Exceeding self-confidence is one of the main reasons why new entrepreneurs fail in the beginning of their business projects.
3) INSUFFICIENT BUDGET
Business does not give a profit as soon as it is launched. A person needs to have some money in order to start a business and he also needs to have some funds in order to continue his project. Online businesses are very diverse. There is a great variety of possible opportunities to make money online. Some of them require serious financial investments and others are less expensive. To be able to fully dedicate himself to a new business project, new entrepreneurs need to have some money in order to live. Some people cannot live without having a regular job. Their main income is regular monthly salary and they have no other income sources. A serious online project requires a full dedication of efforts, time, and finances. For example, blogging. A new blogger may write one post a day if he has a regular job. I think that he won’t be able to write more than one blog post every day. So how many blog posts will he write in a month? He will write 30 posts in a month and 365 articles during a year. Professional bloggers write at least 5 posts every day because they have different income sources, and therefore, they can dedicate their full time to blogging. New entrepreneurs with insufficient funds are not able to deal with their projects most of their daily time, and this is one of the reasons why new entrepreneurs fail in the beginning of their enterprise.
I said that online industry is very competitive, and therefore, every online project requires a full dedication of time, efforts, and investments. New businessmen with insufficient funds are incapable of fulfilling this task, and for that reason, they usually fail very soon.
Online business is not so easy as people think. This market is highly competitive. New entrepreneurs encounter significant difficulties in this industry. Some of them are patient and smart enough to go through all struggles and achieve desirable success in the end. Others fail in the early beginning due to a multitude of different factors.