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5 Types Of Online Businesses That Are Most Likely To Fail

When you witness success stories such as Facebook or Amazon, you can see the appeal of starting an online business.  What sounds better that a job which will allow you to work from your home and let you become part of one of the biggest industries in the world?  Facebook is such as simple idea that it can leave you thinking that you can create a website and it will go viral in a couple of hours.  However, starting an online business is not easy.  There are a lot of things to consider and a lot of things that have to go exactly right in order for your business to become a success.  If you are new to this, it can be beneficial to know what kinds of businesses are more likely to fail, so that you can avoid making these kinds of errors.

1. Businesses That are Started for the Wrong Reasons

Motivation is everything when it comes to starting any kind of business, but especially an online business.  It will take a lot of painstaking attention to detail, long hard hours of work, and discipline to keep yourself on track.  If your only motivation for creating an online website is money, there is a much greater chance that it will fail rather than succeed.  There will be a lot of ups and downs you will have to deal with, and you are much more likely to pull through them if you are passionate about the business that you have created.  Obviously any business should be started with certain economic goals in mind, but money cannot be everything.

2. Ones That Exhibit a Lack of Planning

Because of the perceived easiness of starting an online business, people are often guilty of letting themselves get carried away without proper planning. But if there is one thing that is more important than anything else when starting a business of any kind, it is proper planning. You need to set yourself realistic and achievable goals, and figure out exactly how you are going to meet them. As backwards as it may sound, planning is the only way to help prepare your business for the unexpected.

3. Ones Based on an Unoriginal Idea

So you have this great idea to create a website that is going to become the next Facebook. That’s all very well, but there already is a Facebook, and it is not the foundation for a solid business plan to go up against one of the biggest online companies in the world. A business cannot succeed if it does not find a niche somewhere in the market. People like what they know, especially when it comes to technology, so rather than trying to compete in a market that is already full to the brim, try to come up with something new that you can offer people.

4. Ones That are Too Dependent on High Traffic

Something that goes along with this is the need for high traffic. If a site is designed to be a social site, especially something that will be competing with Facebook, it will only be considered a success if it gains millions of users – after all it depends on social interaction, which is hard if no one else is using a site. However, if it has a specific niche purpose, it can survive easily with a much smaller usership.

5. Ones With a Poorly Designed Website

When it comes to making money online from home, you cannot hope to achieve anything without a good website. Because when it all comes down to it, this is the only thing that matters. A good website cannot guarantee success, but a bad website can only lead to failure.

About the Author: Robert Cordray is a freelance writer and expert in business and finances. He has received many accolades for his work in teaching entrepreneurship and small business success.

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2 Comments

  1. Jennifer hall April 26, 2013
  2. Jimmy Arcade May 4, 2013

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