Due to the low cost of entry, the number of online businesses has been growing steadily. There are about 9.1 million e-businesses in the world today, of which about 2.5 million are from the country itself. However, it is very sad that many of these businesses fail within a year or two and close their shutters. Here’s a list of ten mistakes that your need to avoid as an e-entrepreneur:

Going in for a business that’s not your forte

It’s enticing to see other online businesses grow manifold. It’s easy to fall prey to pursuing a similar business. However, most first-time entrepreneurs are charting a story that’s a perfect recipe for failure when they go after commercial ideas that are not their expertise. They do not have the know-how of the industrial domain, and might also lack passion for it, yet they venture into the business.

Lack of preparations

A business, online or offline, needs a lot of preparatory work. A business plan is a must. You need to conduct market research to analyze competitors, the industry status, etc. Similarly, it is imperative to strategize on production-related and quality-assurance-related aspects. The business plan should also contain background information, an executive summary, and, most importantly, financial projections.

Wanting to make fast money

If you want to make fast money, you may need to go slow and reconsider your options. Very few businesses in the world – offline or online – turn profitable with the word ‘go.’ If your expectations are a quick buck, it is unrealistic and the right option for failure. Be prepared to face losses. Be grounded that the initial few years will be full of struggles before taking this step.

Going after the smaller details

The good part about an online business is that you do not have to plan a lot about renting an office, warehouse, etc. However, if you are focused more on the smaller details, you will tend to lose the overall perspective and push the business down the failure route. For example, spending too much time on the logo or deciding the intricacies of launching the business will waste valuable time.

No understanding of what the customer wants

If you offer products and services that add no value to your target market, your business is doomed from day one. You have failed to understand your customers’ minds and hence offer them products/services that solve no problem of theirs.

Filling in every shoe

If you are doing everything by yourself, your business will not only be prone to failure, but you will soon experience fatigue and lose all enthusiasm to pursue your business further. To prevent this, delegate responsibilities.

Not using online platforms

The online medium has several tools that can be used by online businesses to further their goals. For example, social media is a platform that helps in creating brand awareness and market penetration. Ignoring social media could be a costly mistake, especially when you are starting your business.

Not having an email list

An online business’s biggest asset is the email list. This is the list of potential customers who need to be informed about the latest happenings in your industry. You can use digital tools, free or paid, to prepare a qualitative email list.

Ignoring negative reviews

Be prepared to face all kinds of reviews and comments. Going into a shell on seeing negative feedback can be disastrous. You must address the comments, encourage your customers to give ideas about bettering the product and apologize for the inconvenience.

Not paying attention to the legalities

Business of any kind needs to comply with the region’s legalities. But many entrepreneurs ignore this aspect and face the consequences in the long or short run. Every part of your business matters needs to be formalized and documented as per the law.

Ensure you never start an online business without a concrete plan and legal compliance.