Reasons: why Online Businesses Fail

1. Failure to acknowledge differences
To be successful with a Net-based business, it's important to understand the differences between online and conventional businesses. For instance, many business owners venturing on to the Net simply convert an existing sales brochure into some form of online content, publish it, and then wonder why they're not attracting customers to their site. The textual content of Web sites needs to be expertly written (short and to the point since visitors won't hang around), be easily navigated, and be backed up with high quality graphics that have been professionally designed.

2. Lack of promotion
No matter how well-designed and presented a site is, it won't just magically start to attract visitors (a "build it and they will come" mentality). Instead, a site has to be vigorously promoted, and that takes time, money and persistent effort.

3. Stale content
The content of a Web site has to be updated regularly with new material to ensure that visitors will return, and to also tell their friends and work mates about the site. Even loyal people who have come back a number of times will soon tire of seeing the same old material.

4. Lack of incentives
Business owners have to give potential customers an incentive for doing business online with them. It could be the convenience of being open 24 hours a day, 7 days a week, all year round. Or it could be that buying online is cheaper than from a conventional outlet. Before venturing on to the Web, a business needs to work out what tangible benefits they are offering to their customers, and what differentiates their Net business from a bricks-and-mortar store.

5. Not easily contactable
If it proves too difficult for customers to contact a business online, they'll soon go elsewhere. For example, not everyone wants to fill out a detailed or longish online form. A better approach is to set up personalised email addresses for each of the employees responsible for a specific part of the business. But there's little point in providing email addresses like this if staff members don't respond quickly. Or worse still, not at all. It seems that the business culture of some companies is that it's OK to ignore email. Unbelievably, some sites don't provide even a single email contact address.


Keep sharing and reading

Thanks

i agree. especially on points 1, 2 & 5

[FONT=Arial][SIZE=2]Businesses fail for many reasons. It is important to understand those reasons so that you can decide whether or not you are up to the challenge. Those reasons include:

1. Fear—Whether it is the fear of success or the fear of failure, fear of stepping out of one’s comfort zone to try something new, or the fear of trial and error. Fear can freeze a person dead in his or her tracks.

2. Failure to plan.

3. Lack of funding.

4. Procrastination

5. Excuses. Especially making an excuse for any and everything that causes you to stumble.

6. Doing busy work. Keeping busy doing unimportant tasks.

7. Inability to delegate tasks. Sometimes delegation saves your business. If you have a weakness, hire someone who could turn that weakness into a strength. Use others to complete simple time consuming tasks so that you can do other things.

8. Failure to Research.

9. Failure to Market.

10. An inconsistent advertising campaign. It is better to have a ton of small ads on a regular basis than one large ad on a monthly or yearly basis.[/SIZE][/FONT]

Thanks for the post mate. This would really help us to promote our online business and avoid such problem.

No amount of hard work can alter the fact some niches are just not popular enough to make money. When that happens it is important to cut your losses and move on to something else.

Hello friends

You pay good money to have a web site built, you take the advice of the gurus and have a professional writer craft your copy, then you use major sites and ezines to advertise your new online business.
You do everything you're supposed to, you wait for the big swarm of visitors and sales, and then...nothing happens. Very few visit your site and hardly anybody buys. You become discouraged and consider throwing in the towel.
Does this story sound familiar? It should. More than 90 percent of online businesses fail. The reasons are simple. Most of us can read all the books, listen to all the gurus, and still not know the real reasons successful sites earn good profits.
The true insider secrets of success remain a secret.
We can stand on the outside of these great sites and watch the fireworks, but after the show is over, we have little idea of the ways the show is created. In other words, we have no idea how the site runs, promotes, and pulls in profits.
The real story is often far different from what we've heard, read, or can even imagine. Major online entrepreneurs use a host of little known strategies that use clever methods to attract thousands of visitors per day with little to no expense.
Insiders also have a number of extremely powerful ways to get visitors to buy, buy repeatedly, and recommend the site to others who in turn buy. They use "marketing cheats" that give them an upper hand in generating traffic. They also know simple keys for getting preferred search engine ranking.
Make it your goal to find out how top sites are getting vast quantities of traffic. Then find out where their profits are really coming from. Often those two strategies are hidden deep within the firm's operations, hard to find, and firmly behind the money the site is generating.

Thanks for sharing with us

[FONT=Arial][SIZE=2]Businesses fail for many reasons. It is important to understand those reasons so that you can decide whether or not you are up to the challenge. Those reasons include:

1. Fear—Whether it is the fear of success or the fear of failure, fear of stepping out of one’s comfort zone to try something new, or the fear of trial and error. Fear can freeze a person dead in his or her tracks.

2. Failure to plan.

3. Lack of funding.

4. Procrastination

5. Excuses. Especially making an excuse for any and everything that causes you to stumble.

6. Doing busy work. Keeping busy doing unimportant tasks.

7. Inability to delegate tasks. Sometimes delegation saves your business. If you have a weakness, hire someone who could turn that weakness into a strength. Use others to complete simple time consuming tasks so that you can do other things.

8. Failure to Research.

9. Failure to Market.

10. An inconsistent advertising campaign. It is better to have a ton of small ads on a regular basis than one large ad on a monthly or yearly basis.

11. Your pricing is too low, thus resulting in a negative cash flow.[/SIZE][/FONT]

Nowadays online business can increase day by day. there are some reasons to fail online business such as poor management, insufficient capital, lack of planning,overexpansion, and no website.

You have pointed out some good reasons of people failure to online business.I also think desperation for money also causes failure to online business.