It's quite admirable how young entrepreneurs open to technological trends are dominating the online industry. E-commerce experienced a sudden influx in 2020 due to the Coronavirus pandemic and the resultant containment measures that disrupted the traditional economy. Expansion of the digital economy is a good trend but recent statistics are worrisome as they indicate that close to 90% of online start-ups collapse in just four months after getting launched.
Throughout the year, land-based companies have tried to establish a strong online presence. With all the online tools and digital strategies for e-commerce at the disposal of new online operators, such entities can readily assert their influence in the digital space. Land-based operators who take time to develop their online market entry strategy and ways to attain sustainability can break even in just under a year of operation.
Even more impressive is how traditional companies have been able to identify new opportunities online by entering new niches in the digital economy and acted fast to carve out their share market. It’s impossible to talk about the online industry without mentioning the gaming industry. When gambling halls and betting kiosks around the globe closed down due to COVID-19, more operators made a shift from land-based to online. No market was left untouched by the pandemic but Australia, one of the largest gaming landscapes in the world, took a hard hit. In May of 2020, casino news from Australia reported how the country unplugged their “pokie machines” (slot games) and casino resorts were forced to let 95% of their work force go. Since then we have been able to follow how small and large gaming operators, entrepreneurs and services operators have been trying to fill some of their losses by online solutions. How such entities have approached web-based businesses and e-commerce can be a learning lesson for many businesses in transition.
Below are common reasons that prevent many online startups from attaining long term success.
Most entrepreneurs enter the online market expecting to make huge sums of money overnight. Most online businesses only require one to have a personal computer and internet access to kickoff. Therefore, most beginners assume that e-commerce requires lesser follow-up obligations. However, experienced operators will advise you on the importance of digital marketing strategies and optimizing visibility for your platform. Online support and responsiveness have to be impeccable as well.
Many people formulate unattainable goals that often end up frustrating their efforts. Do not fly blind into e-commerce, do your due diligence to learn the ropes in your line of operation so as not to get stymied after a few weeks. Small efforts always compound to massive results.
Delayed Execution of Plans
The most rewarding online businesses are hard to join unless adequate effort is invested. This effort might include taking lessons to learn a skill or language. People do intensive research about online businesses and even plan for advanced stages before executing the basics. Online businesses require commitment, diligence, and patience, just like any other startup. When a perfect digital strategy is formulated, campaigns have to be timely done to steadily generate traffic and keep your audience engaged. This is a full-time job.
Inconsistency and Lack of Patience
Inconsistency is also a significant pit hole for most online entrepreneurs. Although some businesses begin to pay off immediately, most take months or even years. It is, therefore, normal to have trouble in the initial phases. Instead of looking into other options, you should spend time improving skills and adapting to the business demands during trying times. Because of this struggle, there are several grant programs available to help small businesses during this time.
Hardly will you find any success story without its fair share of adversity. Success in the entrepreneurial space comes from taking full ownership of investments. Every businessperson must prove to customers why their business is better than competitors and that they are a brand that is here to stay.
Lack of Development
While working online, it is important to remember that the digital world is fast-evolving, and digital trends are churned by the minute. Therefore, maintaining a competitive online business requires you to stay updated with emerging issues in your niche. Don’t let competitors gain a competitive advantage. With the current technological evolution underway, most businesses are moving online and pressing for rapid improvisation to handle the growing market. In online spaces, it is easier for customers to compare prices and the quality of services offered by different platforms. Always have incentives to keep your sales funnel active.
Lack of E-commerce Managerial Know-How
Online businesses are most challenging for inexperienced entrepreneurs because unlike traditional business models, there aren’t as many management frameworks that are already tried and tested. If you want to build a thriving business, you must know how to maintain an enabling environment for work by learning from other enterprises and adapting your own ways. You have to grow with your online business needs and get the necessary help from online service providers and influencers as your enterprise expands.
Consistency and adaptability are the key components of a successful online business.