There are hundreds of reasons why businesses fail. From a bad location to a faltering economy, there are often problems that business owners can’t control. But I’m going to talk specifically about why online businesses fail.
An online business has access to billions of potential customers each month, yet they are still failing. How can this be?
It’s sad to say that many business owners have no idea how to harness the power of the internet.
Types Of Business Failure
Before I share why online businesses fail, it’s first important to understand the different types of business failure.
Your business might be earning an income yet failing at the same time. This happens when your business is not scaled properly and can’t handle an influx of customers should they find you. Perhaps your business is earning an income with you as its sole employee, but if you hired help, your income and workload capabilities could increase exponentially.
Another type of business failure is when certain areas of business are ignored. Again, the business may be profitable at the moment, but it could be even more so if marketing, content creating, and technical aspects were equally cared for.
These types of business failure and more will be ironed out in these 10 reasons that businesses fail.
10 Reasons For Business Failure With Examples
These top reasons why businesses fail will open your eyes to business issues that you may not know exist. It’s important that business owners correct these problems before the business meets its end.
You didn’t have a plan in place
Probably one of the most common reasons why a business fails is simply because it wasn’t started on the right foot. In other words, if it is started without a plan in place, it can quickly fail.
Content focused online businesses tend to shift focus as time passes and that’s okay. But it’s still important to have a plan in place so that you know where your goals are focused.
You don’t have fresh content
Unfortunately, setting up an online business and waiting for sales to pour in on launch day just doesn’t work. Every online business should consider adding a blog to its marketing plan.
Blogging allows you to use content marketing to reach a new audience and grow your revenue. Content builds trust, brand awareness, and brings potential customers to your site on a daily basis.
Your content is bad
Perhaps you do have a blog or at least content on your website, but if it’s not good content then you’ve missed the mark.
Good content will be helpful to your target market: well-written, authoritative, and easy to read. It will also not be written to instantly push a sale, but instead to solve a reader’s problem (which may then result in a sale).
That leads to the next reason why businesses fail…
You’re only pushing the sale with no value
Business content needs to provide value… for free. If a new customer lands on your website and sees nothing but “buy now” buttons and fancy stock images, they will quickly leave.
Content about your products and services will help your business exist, but helpful content about your industry will help build your authority and in turn sales.
Your target audience can’t find you
Have you ever looked at your website traffic and wondered where you’ve gone wrong? Everything is aesthetically perfect and your prices are fair, but sales are stagnant.
Have you ever considered that your target market can’t actually find you? It’s important to remember that online competition is higher than ever.
Get your business on relevant social media like Facebook or Pinterest; but more importantly, make sure your content’s SEO is on point. SEO (search engine optimization) is the process of preparing your website to be found in searches on Google, Bing, Yahoo, and other search engines.
Your UX is bad (site speed, design, navigation)
Another reason why businesses fail is due to bad user experience (UX) on your website. Is the site slow to load? Aesthetically pleasing? Easy to navigate? If any of these are out of line, then it will affect your SEO poorly and give you a lower chance to rank on search engines for search terms related to your niche.
You’re not promoting your business properly
Business promotion is a must. Actively networking with your target audience is an important way to establish trust and brand awareness.
Make sure your business name surfaces in places that relate to your niche, such as forums, Facebook groups, and interactive online communities. Find out where your target market is “hanging out” online and show up there every day.
You’re not building relationships
Similar to promoting your business, go a step beyond and build lasting relationships with your target customers and clients. Answer questions, offer help, and provide value with each interaction.
Email marketing and social media networking help build relationships with people.
You’re not building an email list
When visitors hit your website, you have one chance to “wow” them. Even if they like what they see, they probably won’t buy anything their first time seeing your content. It takes multiple reminders or “touches” with a customer to secure a sale.
This is where email list building comes in. Offer something valuable to your target audience and provide value to their inbox every single week. When they’re ready for your product or service, they’ll know right where to find you.
You’re treating your business like a hobby
Last but not least, if your business is still just a hobby to you, then it may never be profitable. Setting the right prices for your products and services is crucial to success. If you think of your passion as a hobby, you might end up giving away your time because you enjoy doing it.
In the long run, this could lead to profit suffering or complete failure.
How To Avoid Business Failure
Avoiding failure is simple once you know what’s causing the overall issues. Businesses fail for many reasons, but once you’ve pinpointed why yours is not taking off, it’s time to fix it.
Have you started your business yet? Is it profitable or simply in existence? Sign up for my free email course where I teach exactly how to start a profitable business. Even if your business is already started, you will still find value in this course and possibly find the missing pieces to your success.