Did you know that every 6 out of 10 Internet businesses fail within the first 4 years of their existence? It is not a very encouraging statistic if you already have, or are thinking of having, your own Internet business. However, you can avoid being part of the 60% who fail if you don't make one of these 5 most common mistakes that Internet entrepreneurs make.
With the advent of the Computer Age, a new gold rush has also begun: the boom in Internet business.
It is not surprising. According to "Internet World Stats," Internet use in the last decade has increased by 480%, with Asia and Europe being the fastest growing regions, followed by North and Latin America. (http://www.internetworldstats.com/stats.htm)
The boom of the Internet
In a matter of a few years, the Internet has established itself as a powerful platform that has changed the way we communicate and the way we do business. It has given a globalized dimension to the world that has never existed before, since it has become the primary means of communication and source of information for millions of people from home, work and also from school.
In the specific case of Internet business, it is also the most democratic system of the media. With a relatively low investment, anyone can have a website. In this way, any business can reach a huge market directly, quickly and economically, regardless of the size or geographic location of the business.
The brutal truth
However, not everything is rosy. Unlike what is claimed on some pages, the Internet is not a magic wand that will lead to instant riches. It only puts at our disposal a presentation platform that allows us to reach a global market for a relatively low price.
The rest of the essential ingredients, just like in an offline business, are provided by the entrepreneur: The «blood, sweat and tears» that are characteristic of every venture and that will play a fundamental role in the success or failure of an Internet business.
So that your Internet business is not part of the sad statistics of failed businesses, I gave you an overview of the 5 most common mistakes people make when starting their Internet business:
1. Not differentiate yourself from your competition
The Internet not only offers you a market with more potential customers, but will also expose you to having to compete globally with many other businesses similar to yours. If you fail to differentiate yourself from your competition, you will succumb.
This is a stumbling block for most people starting an Internet business. They think they should reach as many people as possible. They design their website to solve Pedro, Juan and Diego's problems and never manage to stand out as experts in something specific.
2. Becoming an employee of the Internet business
According to Robert Kiyosaki, the number one mistake of a person who wants to become financially independent is that of becoming an employee of their own business. This can be avoided by designing a medium-term plan that focuses on building a business system that can be sold "turnkey" in the future.
In other words, the Internet entrepreneur must focus on creating, in the medium and long term, business systems that work even if they are not present. This concept is brilliantly explained in the book "The E-Myth Revisited" by Michael Gerber. (Gerber, ME: "The Emyth Revisited." Harper Collins Publishers, Inc., USA, 1995)
3. Do not delegate
Due to the problem mentioned in point two and the lack of resources of the initial stage of a business, many Internet entrepreneurs fall into the mistake of doing everything on their own. In this way they limit the progress of their management, since everything is restricted to the time, skill and work of a single person.
A team will always go much further than a single person and, therefore, it will be more competitive. Start delegating functions you don't like to third parties as soon as possible, so you can focus on contributing to the business with your strengths.
4. Impatience
Most Internet businesses fail due to lack of perseverance. We live in a society in which everything is obtained at the push of a button.
If you are one of the people who have never had their own business and want to start on the web, let me tell you that both you and your business are going to have to go through a process of growth that consists of several stages, before reaching the level of income that you long for (or that some unscrupulous people have led you to believe are achievable).
5. Do not invest in education
The biggest mistake, which can prevent these 4 previous mistakes, is the lack of preparation. Before investing in a business, invest in your education. This process can be assimilated to the action of sharpening an ax before knocking down a tree.
You can try to take it down with a dull ax, but it will be a major effort, it will run a lot of sweat unnecessarily, and you may abort the project out of boredom and weariness.
On the other hand, if you sharpen your ax, with a couple of blows you will be able to obtain tangible results and you will be able to carry out your Internet business in a prudent and opportune time.
