In the era of technological advances, the rapid expansion of the broadband and high-speed Internet connection has created momentous opportunities for entrepreneurial success. E-commerce is becoming increasingly popular as consumers become increasingly demanding, requiring superior customer service provided by online businesses. At the same time, online start-ups strive to offer high quality web content in order to achieve higher ranking in the search engines results pages (SERPS). In doing so, they possibly attract more unique visitors in the aim of converting them into regular customers through effective internal site search optimization.
Why Only 10% of Online Start-Ups Succeed?
Although the Internet is a huge marketplace where firms can build sales momentum, a large number of online start-ups fail although they seemingly have the potential to succeed. In fact, nearly 90% of e-commerce start-ups fail within the first four months and only 10% manage to succeed as a result of self-discipline, understanding of business fundamentals and accurate Web marketing strategies.
What Are the Factors to Consider When Running an Online Start-Up?
Running a successful online start-up requires primarily self-discipline. Because online business owners are self-employed, it is easy to consider that they can run a successful business by sitting in front of a PC screen for no more than five hours a day. However, to run an online business effectively, particularly as a start-up, requires dedication and serious time investment.
b) Understanding of Business Fundamentals
Thorough understanding of business fundamentals, particularly in the sensitive fields of marketing and finance is extremely required. Business owners cannot run their startups without understanding the debt to equity ratio or how important SEO is for an online business. Lack of such important knowledge will lead to wrong business decisions and eventually to the failure of the start-up.
c) Effective Implementation of Web Marketing Strategies
The implementation of accurate Web marketing strategies can lead to online business success. E-commerce start-ups that base their offerings on sound business strategies are not entirely dependent on advertisement revenues. Instead, they create income from turning casual visitors into regular customers to whom they can sell their products and services. In doing so, they boost the profitability of the online start-up and establish a strong Web presence.
d) Focus on Customer Loyalty
Online start-ups that invest huge amounts of money in promotion without having researched the market or their target audience in advance are highly likely to fail. Focusing on appropriate promotion can increase brand awareness and customer loyalty along with the use of suitable media of promotion that can effectively penetrate the target market. On the contrary, ineffective promotion fails to turn casual visitors into regular customers and loyal advocates. Customers are not attached to any brand name or any particular product or service because the latter are not properly advertised. Given that online brands need more time and effort to build customer loyalty, online start-ups may fail as they cannot invest in a loyal customer base.
In conclusion, online business success requires good planning. This means that the online start-up should enter a particular market with effective strategic planning including self-discipline, understanding of business fundamentals, accurate Web marketing strategies and focus on customer loyalty. If these factors do not work, the online start-up will fail really soon.