Why does online business startup easy to fail?

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Lack of business plans, more competition, unrecognized brands … become the cause of hindering young entrepreneurs.

No have a business plan

This is one of the main causes leading to the failure of business enterprises via the Internet. Many people even mistakenly believe that a website with hundreds of thousands of visits per day will help the company to grow successfully.

However, the actual company management needs thorough business planning and preparation for any situation. In running a business, the slightest possible error is the cause of bankruptcy.

Enterprises with Internet-based businesses need to follow the same procedures as traditional companies. This is the reason why leaders need additional financial knowledge to support business planning for the company.

According to an analysis by CB Insights, 17% of this field startup failed due to lack of orientation. With many experienced people in the field of online business, the issues of cost, risk, resources, competition, payment channels, security, marketing, SEO … are focused.

No focus on brand building 

In fact, many businesses succeed by building a good brand strategy, which is an important factor that plays a role in helping customers identify products.

Brand can be identified through company name, logo, theme, color, website … Withstartup activities through the Internet, website name plays an important role. Choosing the wrong domain name will make it difficult for customers to identify the product, thereby leading to difficulties in business. To attract customers, the domain name of a startup needs to be unique and related to the item.

Too much competitions 

A keyword for any customer needs on Google has thousands of results. For example, there are dozens of units providing apartment cleaning services.

Similarly, there are many general-purpose applications and tools appearing in the Apple, Google, and Microsoft app stores. create differentiated products, attract users.

Products need to be new and applicable. When creating products, businesses need to consider carefully the issues of market, competition, risks and opportunity costs. A good product has the ability to beat competitors. Entrepreneurs should research business plans and analyze the market to make the right decision.

Do not focus on design

A website with a beautiful interface has a higher sales potential, on the contrary, if the website is sloppy, it is easy to make customers feel discouraged.

Today, consumers have a higher demand for beauty than many years ago. A mistake in layout and interface design can also cause the company to lose potential guests.

For this reason, startups should invest in interface design during the process of making a website. In addition, businesses need to make every operation on the site becomes user friendly to bring the highest business results.

Do not focus on Communication 

Website born with no communication elements will be difficult to attract customers. However, communication should be appropriate, not too much or too short for the product to reach customer needs without causing discomfort.

At the beginning of operation, enterprises in this field need to spend a lot of marketing expenses. First, startups should know the right customer for the product they provide. Next, the communication plan should be carefully arranged and properly used.

In marketing, social media plays an important role. In particular, email marketing becomes one of the effective communication channels businesses should use.

 Human resources are not suitable

Although the business is business via the Internet, but the human element plays a vital role for the development of the company. With startups, this problem becomes difficult because employees often have to work until night or work weekends due to the specific nature.

Management problems are proposed to promote the working spirit of the workers. Many businesses accept skills and experience training for employees as a form of employee retention.

In addition, the attitude and dedication to the project are important factors. The startup founder should not consider the people who are working for him, but treat them as partners, so that they see the effort, time, creativity for the project is worthy.

Do not keep in touch with customers

After the website operates and has the first customer base, the service that customers receive will determine their attachment to the company.

Assuming the startup has a beautiful website interface and an effective communication campaign to attract customers to use the product, the service element, if not satisfied, the customer will not be able to ensure a stable revenue.

Therefore, to form a regular customer system, startups need to interact with customers through newsletters, emails, advertisements, social media, articles …

If customers love the company’s service, they will recommend the product to friends and relatives. Therefore, startups need to focus more on customer service through gifts, incentive programs …

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