Selling products and services online is a very efficient and convenient way of doing business. However, many online businesses in the UK fail to survive in the competitive market and close down their business after a few years, or a couple of months due to not having the right business protection. The main reason for such failures however, is not a lack of sales, but as a result of some of the following reasons:
- A lack of authenticity and transparency: most online businesses fail to keep the customer’s needs in sight and often focus on other less important affairs. Trying to make profits at all costs and placing making a profit above offering a satisfactory and honest service. In doing so they fail to gain, or keep, the customers trust. This often happens because there is a lack of face to face contact with the target consumers which creates the negative notion of little or no responsibility for poor service.
- Inadequate social media presence: the success or failure of any business depends on its ability to occupy a good market presence through making their products known. Most online businesses fail because they neglect the importance of creating an effective social media presence which would help more customers to come in contact with the business and benefit from the value it has to offer.
- Overwhelming data pool: a lot of data that needs to get processed, as a result of worldwide coverage often leads to a state of paralysis for most online business where nothing actually gets done. An overflow of data often leads to a dearth in motivation, enthusiasm, and persistence.
- Lack of knowledge on the basics of online business success: the online web is keyword driven. Search engines (Google, etc.) often rank sites using certain principles. Most online businesses fail because they neglect to understand how to actually make their business site to easily pop up on the search list, and also be able to occupy a place at the top of the list when people type in certain keywords.
- Lack of time and resources: most online businesses are often managed by individuals who do not take it up as a full time endeavor. It often takes many months, and even years, for a successful online business to go through the required learning curve and be able to get firmly established and produce enough cash flow that can sustainably maintain it and create enough proceeds for additional profit. Most online business managers often do not find the time and resources to give the business what it needs.
- Failure to create an efficient sales funnel: most businesses fail to build an effective sales funnel which should be one of the first things to do when starting up an online business. Potential consumers need to see testimonials from existing customers to be able to decide to try the product/service.
- Inefficient business model: most online businesses do not make use of an adequate business model that would ensure success and growth.