
12 mistakes new online businesses must avoid
Setting up a new business is an exciting undertaking. But did you know that more than 18% of new businesses fail within their first two years of operations? This data point from the U.S. Bureau of Labor Statistics can be quite concerning for aspiring entrepreneurs. To ensure that your business is well-settled on the path to success, here are 12 mistakes you should avoid making when setting up an online business:
Not making a business plan
Without a business plan, you’re setting your new enterprise up for failure. Every new business must have a plan, even if it’s only one page long. This plan details the cost of operations, anticipated sales, and your product’s unique selling point (USP). Having a plan of action will help you build your business consistently.
A well-made business plan includes the following:
- Background information
- Confidentiality
- Products and services offered
- Industry status
- Market analysis
- Production and quality control strategies
- Financial projections
- Executive summary
Taking too long to launch
Once your business plan is ready, do not wait too long to launch. Your timing is everything. If you’ve noticed a niche in the market that is not being catered to yet, it’s time to do your research and get ready to launch. Taking too long may cause you to miss your window of opportunity with other players entering the market. This can reduce your profits significantly.
In no way does this mean that you must rush to launch. Take ample amounts of time to study the market and build a strong business plan. But don’t spend too much time contemplating – strike while the metal’s still hot!
Being disorganized
When running an online business, it is important to be organized. Businesses often have several things happening simultaneously – from strategizing and marketing to completing orders and addressing customer queries.