April 9, 2011

7 Internet Business Screw Ups You Need to Avoid

One of the reasons why people are scared to start an online business is because they think that risks far outweigh the benefits. Who can blame them? With horror stories of failed startups, it's really terrifying to say the least.

I have gathered 7 of the most common mistakes business owners make in starting and operating an online business. Hopefully, this would help business owners stray from the failure path well-trodden.

Screw Up # 1: Complacency
Some people think that owning a website and delegating marketing efforts are all you need to run an online business. WRONG! If you're guilty of that, you're being complacent. Complacency is when you feel that you're already satisfied with how your business is doing. You have to continually work to be a success. Once you have reached a particular goal, then it's time for you to set another, more difficult one to achieve.

Screw Up # 2: Lack of Knowledge
Any internet-savvy person can start an online business. That's why there's a statistic for failed and successful businesses. You should have proficiency in your line of business. Do not even try to pretend to be a authority but slowly try to build your reputation as one who could be. Your customers would purchase your products and services if they trust you. And a customer could only trust you if they believe that you know what you are talking about, that you have extensive knowledge on what you're offering.

Screw Up # 3: Too Cheap to be Bothered With
Everybody wants to save on products and services but if you offer too low a price, your customers would have some doubts as to the quality of your business. You can offer discounts, have a sale or give promotional items to sweeten the deal but stick with the average industry prices. Another reason why this causes failure is that when a customer refers you to a friend (if they do), their friends are going to want the same deal. With the rising cost of overhead expenses, you might find yourself losing money instead of earning it.

Screw Up #4: Bad Reps and Good Reps are Just the Same
Do not think that having bad publicity is as good as having good publicity. There's a very distinct and obvious difference. People who use their burgeoning bad reputation to gain more traffic cannot convert it to customers. Customer reviews are important and it's one of the basis people buy from you especially since you're operating a online business. Keep your nose clean and just stick with providing excellent customer service and quality products.

Screw Up #5: Your Website Sucks
Honestly, would you even consider buying makeup from someone who looks as if they'd been beaten black and blue? Come on! Your website is your office. Free it from clutter. Keep it looking simple and make sure it's user-friendly. No one wants to go through a maze of clicks before arriving at a certain web page.

Screw Up #6: Stale Content
You need to update your website as frequently as possible. If people would see the same materials, the same products over and over again, they'd be so sick there's no doubt they won't ever visit your site again. You have to constantly keep your offerings fresh to gain attention both from new and existing customers.

Screw Up #7: No Contact Information
There are some people who wants to know your business address and office number for security purposes. They're thinking, "there are a lot of scams in the internet today, how would I know yours is legitimate?" Everybody wants to protect their privacy but since you are operating an online business, you need to give in. At least put your email address and contact number if you don't have an office address. You also need to constantly check your email for any inquiries a potential customer could have. If people would feel that they can easily contact you, the higher chance you have of converting those people from just visitors to happy customers.

1 comment:

Anonymous said...

"Do not even try to pretend to be a authority. " Where are the statistics you keep mentioning in your article? You also spoke of keeping your site free of clutter and convey a professional business image. You have tons of widgets on your site and are hosted on a free blogger account. If I were you, I should probably start taking my own advice.