Every business owner makes mistakes. Even the likes of Warren Buffett, Richard Branson, and Elon Musk have made mistakes in their businesses. The quintessential need is not to be perfect and sidestep every mistake but to avoid those ones that will cost your business dearly. Here are the top five mistakes online business owners make.
Digital enterprises can spring up in no time and usurp the market share of a major brand in a brisk few weeks. Ignoring competition is a surefire way to ring the death knell for the business.
A business must always remain sustainable and for that, it is necessary to remain reasonable with all expenses or recurring financial liabilities.
However, affordability should not compel a business owner to make decisions that do not have the best possible outcomes for the enterprise.
For instance, opting for cheap hosting plans will save you money in the short-run but cost you SEO points.
Hosting plans that cost very little every month will have severely capped bandwidth. These tend to be shared hosting plans and although you may have a new site with low traffic volume, your goal is to generate more traffic to your site.
You may be doing this with advertising or other forms of paid traffic. Visitors will not stay on your site if it is slow to load. SEO won’t kick in until your site meets specific site speed standards.
One of the issues with shared hosting is that another site that you are sharing that hosting with might see a boost in traffic and that slows your site down.
Site speed is an essential element in SEO and is a key ingredient in beating your competition for valued customers.
Globalization has ushered in an era when you can find people to do everything at a fraction of a cost than what you would have paid in the pre-globalization days.
It is not fair to state that the quality of professionals or their skills has waned but it is true that outsourcing has its pitfalls.
You can and should outsource anything that you are not very good at. From website design to accounting, you can and must hire experts.
Also, note that outsourcing does not necessarily need to be hiring virtual assistants from another country.
You can hire contractors or companies based in your city, state or country.
The trouble lies in outsourcing everything.
When online business owners don’t have complete control over any of the assets of the company or the day-to-day affairs affecting one or all existential aspects of the enterprise, then the business is bound to suffer sooner or later.
Lack of Diversification
Many business owners are content with their deep focus on one niche. It is perfectly acceptable to focus on one or a few complementary niches but you need to diversify to sustain your overall empire through the years.
Every niche goes through upswings and downswings. You can always enjoy the upswings but you need to plan for the downswings.
If your business focuses on a cyclical niche, look to add products or services that have opposing cycles or more steady demand.
If you have a landscape maintenance business that slows down in the winter, maybe you could add in products or services that complement your core business, such as irrigation system design, or garden design and installation.
Slow to Upgrade
Many online business owners launch their enterprises with state of the art equipment and tools for a startup and then fail to improve as they reach new levels of success.
It is not just the technological infrastructure that needs to be upgraded but also the quality of products and services, the systems in which your business is managed and the procedures used to wow your clients.
Keep an eye on your KPI’s and anticipate the needs of your business before it becomes critical for change.
If you wait too long to make these changes it could cost you, customers, during peak business cycles.
Give yourself time to learn new technologies or ways of doing things prior to implementation so that you have a smooth transition.
Digital enterprises can spring up in no time and usurp the market share of a major brand in a brisk few weeks.
Ignoring competition is a surefire way to ring the death knell for the business. It is good to keep an eye on the competition in your marketplace more for awareness of their offers and potential gaps in products or services.
When you see reviews for your competition and customers venting about products or services they wish they had, this could be something that you could potentially offer.
Additionally, by monitoring your competition and knowing what is happening at all times in your market, you could find opportunities to acquire some competing businesses.