Anyone looking to start an online business must understand where they fit in the market and how to build credibility, but there is a lot more that comes into play. Eric Dalius says that online businesses are easier to set up than ever, but there are several mistakes debutant entrepreneurs can make that could set them up for failure, or at the very least, hinder their success in the short and long term. Here are some blunders you must avoid at all costs.
EJ Dalius Highlights Online Business Mistakes
Mistake: Not Having a Clear Roadmap
Formal business plans aren’t particularly necessary, you’re free to be agile and think on your feet. That doesn’t mean you can operate without any plan of action. Your business plan isn’t just needless documentation; it serves as the foundation for all your decisions and provides a clear direction for your operations going forward. This is why you need at least some core portions of the plan figured out, these being market analysis to identify existing and potential customers, clearly defined ideas for products or services you are going to offer, and what you can expect people to pay for them.
Mistake: Not Taking Finances Seriously Enough
Entrepreneurs can afford to be optimistic and even lackadaisical about a lot of things, but money absolutely cannot be one of them. Any veteran businessman will tell you that if finances aren’t your #1 concern, your company could run out of funds well before you’re in a position to replenish them through sales and contracts. You need to be aware of how much cash you need to keep the business afloat, what your burn rate is, and what you need to do to stay in the black and inject more funds into the business. If you have a rude awakening, it might be too late for you. From the get-go, you need an immaculate financial plan, with detailed milestones that you keep checking your progress against.
Mistake: Compromising on Employee Quality Initially
Often businesses skimp on early hires. They either refrain from hiring enough people or they compromise on the quality of employees to spend less. Moreover, business owners are often in the habit of rushing the entire hiring exercise for quickly filling positions for scaling their businesses. However, this could trigger issues in the long run including a major mismatch between business requirements and skill set. Moreover, you may end up hiring somebody who does not gel well with the company’s culture or who lacks dedication and commitment to the mission of the company.
Just like many other digital marketing experts, Eric J Dalius firmly believes that while hiring people for your online business, you must consider looking for individuals who have those skills that you do not have and exemplify the precise qualities you actually respect. The initial five or so hires could set the tone and temperature of your company forever.
Mistake: Not Paying Attention to Customer Service
With numerous of your business transactions taking place over the Internet, you simply cannot undermine the fact that customers would be coming back to your website provided they get a good experience. Keep interacting with your customers via surveys, live chats, phone, or email. You must give top priority to customer service. Moreover, keep monitoring social media platforms for brand sentiment and examine review sites such as Yelp for seeing who is not too satisfied with her or his experience and do not forget to reach out at once. While starting a brand new business online, it could be enticing to focus your attention on solely your fans and undermine or even ignore your critics. It is nice to have self-confidence but ignoring or dismissing negative feedback is a mistake.
We have discussed some common mistakes made by entrepreneurs while starting their own online businesses. However, you must never make the mistake of starting a business if you do not have a passion for it. Do not skimp on relevant legal issues. You must comply with the standard regulations and existing best practices. Learn more about your competitors and chalk out an effective business plan that acts as a roadmap to success and sustained growth.