Owing to the competitive markets all trades are facing today, businesses need to be handled meticulously, be it a bricks and mortar company or an endeavor catering to the online business world.
Well, the online business world is truly enigmatic and full of opportunities. While it offers you the entire globe as a playground to display your expertise and reap successes, it can also pose potential threats if you do not build the required credibility for your business, with your online clients.
Setting up a company that caters to online businesses may seem relatively easy with a low set of barriers, but at the same time, many people stepping into this arena are failing largely; simply due to the mistakes that they make and do not realize them in time.
Here, I am going to talk about a few of such mistakes which you must keep at bay if you are looking to bring success to your start-up company which is going to furnish to the online business world.
1. Lack of a Business Plan And Wandering Aimlessly
Even if it is an online business, a concrete laid down business plan is a must. If you keep treating a business plan as the homework that makes you cringe, the business is unlikely to reach the levels you wish to see it at. An appropriate methodical planning helps to move ahead step by step and making each step count while you start to know the bigger scopes in the potential online grounds. Having said that, I would also like to mention that you do not necessarily need to write down a 50 pager formal business sheet. All you need to jot down or have clear in your head are, your target customers, the segments that you wish to cater to in the initial stages of business with the products or services you are selling, the price that you think you should be asking for keeping in mind the prevailing market trends and where do you plan to move ahead, with all this in place. Do not forget to include your business capital and its lasting period in your 5 point business plan.
2. Keeping More Than Necessary Focus On Mundane Things
In my view, a lot of new business owners get too hassled with the superfluous detailing of the basic stuff, making it a tedious task for themselves to concentrate on the larger picture. Please avoid doing this. The colors in the logo design, the business card detailing or the look of the website are the things that should be given just the adequate time. It should just be a small part of your larger and valuable expertise and should not eat away the time and energies that you need to put in more important activities. Keep your focus on the actions that promise to propel your business towards greater heights.
3. Not Being Careful About Your Cash Outflow
You will start with a capital in hand which you may project as lasting for a stipulated period of time, and within that span, you need to start making the profits from your business. If you are not careful about the outflow of your money, you are more than likely to face a financial crunch in the very beginning stages of the business take off. More than spending the money judicially, you also need to have a clear plan with crisp figures on your burn rate, the amount of time and the numbers of prospective clientele you need, to make money before you run out of it. Have your money milestones clearly laid down in front of you and act aggressively to achieve them.
4. Undervaluing Your Products or Services
When you are out to make business, you must know the worth of products or services you are selling. For that, a thorough research on the prevailing market trends is imperative. Your price list must be competitive to that of the market. Having said that, it is also important to mention here, if you promise to deliver your stuff which conforms to higher standards, you may want to keep the compensation bar a little higher too. Make sure you do not undervalue your deliverables and ask for what you rightfully deserve. Ask for a price that helps you to make a worthwhile profit.
5. Sidelining The After Service
When we talk about online business, most of the transactions happen over the internet, which makes the business owners forget to add that little personal touch of after service. Remember, if you are good at what you do and you are eager to improve it for your customers, you are winning a larger and long-term game. Make sure you keep taking periodical feedback from your clients, even when the business is over with them. Or else, have a way to interact with them through the internet and letting them know that you are always available when they need you. Make it a crucial exercise of your credibility building.
6. Not Understanding The Commercial Relevance of Social Media Platforms
Starting a new company does not mean that you have to nail all possible social media platforms when it comes to advertising your products or services. You must understand the core of the communities present on various social platforms and choose accordingly, to make a display of your business. For instance, Facebook and Pinterest are the potential platforms for product selling, whereas LinkedIn works better if you are looking to garner business success by repurposing content, which is promoting the services you offer.
7. Hiring Like There Is No Tomorrow
Company start-ups are usually seen hiring the staff at a thunderous rate, filling up the positions, misconstruing the success rate with the number of people they must have. More often than not, this strategy fails the business entrepreneurs. There are several issues which they face after the bulk hiring is over. Mismatches of skill sets with the business need, unimpressive personalities are not fulfilling the demands of the online business world, lack of commitment which could complement the company’s mission, all these are just a few of them. Therefore, it is the matter of utmost importance to hire people prudently, in fewer numbers, and who possess the skills that you, being the business owner don’t. There is a saying that goes in the business world, “First five hires will always set your company’s meter for the rest of its existence”. And it stands true to the core.
8. Not Capitalizing On Global Networks Available To You
The presence of online business communities on collective platforms has removed the barriers and the world seems to have shrunk into a single commerce arcade. This makes it all the easier to reach out to your target customers without having to spend a single cent on travel. If you are not adding up to your potential client database, even after having the global businesses right in front of you, vast spread in your professional network; you are making a huge mistake. The number of business conversions is always directly proportional to the number of contacts you have in your pitching list.
9. This One Being The Most Critical – Undermining The Value of Obsession You Have To Have For Your Business
The art of Living gurus keeps reiterating the work-life balance and stress too much on keeping it. I say, for the initial one or two years of your online business start-up, forget those teachings. You simply cannot achieve success if you are not mad passionate about what you are doing. While managing time and making a balance is important, it is so when you do not have larger success goals on your cards. Path breaking ideas will not strike you when all you are trying is to keep everyone happy from your family to your Polo club pals to your holiday organizer. Big innovations happen when you are focused on your objectives and working hard to achieve them. You need to let that obsession take over you, which will lead you to monstrous success.
Now that I am done talking about details about the mistakes that all the online business start-ups need to avoid, I would like you to have a quick run through the headers so that the crux of the matter is preserved.
Here you go:
- Lack of a Business Plan And Wandering Aimlessly
- Keeping More Than Necessary Focus On Mundane Things
- Not Being Careful About Your Cash Outflow
- Undervaluing Your Products or Services
- Sidelining The After Service
- Not Understanding The Commercial Relevance of Social Media Platforms
- Hiring Like There Is No Tomorrow
- Not Capitalizing On Global Networks Available To You
- Undermining The Value of Obsession You Have To Have For Your Business
All the very best to all the start-ups out there, ready to take over the online business world!