Why are so many Internet startups failing today?
In the real world of the brick and mortar business, every day millions of people drag themselves from their comfortable beds, go through their morning rituals of washing up and having breakfast to go to work. In their daily grind, some think that there must be a better and easier way to earn a living.
All these millions know someone or know of someone who “made it” by leaving their boring existence and becoming their own boss using their own computers in the comfort and quiet of home.
While the idea of working from home sounds like an ideal solution, most just aren’t getting ready. Many of these unhappy people will simply quit their jobs and jump right into the first internet marketing business they find with no preparation, no knowledge of what they are doing, no education, and no hope of success. Failure is their only option and they are not even aware of it.
According to many sources, more than 90% (ninety percent) of all businesses started on the Internet fail within the first 120 (one hundred and twenty) days. And that number is too exact: NINETY PERCENT!
This alarming failure rate goes unnoticed for several reasons:
1. Many do not know the statistical odds they face.
2. Many don’t see themselves as part of the failures or they wouldn’t make the leap.
3. Many are told about things for which they are not prepared.
4. Many do not know the basic principle: “If you fail to plan, then you plan to fail.”
Of course, success is still a possibility. THERE IS that other 10% (ten percent) that is successful. For them, success does not happen by accident. And success isn’t just a game of dice. Success happens due to some very important factors.
Success happens because people learn about internet marketing and how it works. They don’t expect to get rich quick or be able to make an overnight killing spree and retire to a tropical island.
It’s strange, but somehow the same people, who wouldn’t dream of starting a business in the real world, think they can do an internet business even though they don’t have a business background.
People think that an internet business just means that they no longer have to get up and go to work. They think they can just work when they feel like it and still earn a good living. They don’t understand that any business requires them to work hard and sometimes work long hours.
Some misconceptions on the internet
That 90% failure rate for new internet businesses really isn’t surprising when you think about the type of people who start an internet business.
Most people seem to think that being a successful internet marketer is as easy as building a website and getting your own domain name and that couldn’t be further from the truth.
Being a successful internet marketer requires self-discipline. People read books like “4 Hour Work Week” and think that partying all night, sleeping until noon, and then 3 or 4 hours on a computer will make them rich.
There is no magic button to press to have instant massive traffic to your million dollar website and handfuls of cash in your bank. It’s just not going to happen.
Internet marketing does not run on autopilot. And while established Internet marketing types don’t put in the long, boring hours, they have built their businesses doing just that in the past.
It doesn’t happen overnight for anyone. Most people are not prepared for the time requirement for an Internet business to succeed.
They have no business background
All businesses, big or small, Internet or “bricks and mortar”, have two things in common: they are a BUSINESS and they should operate like a business! Entrepreneurs must understand accepted business practices.
There are simple, basic concepts like “acceptable overhead in relation to projected revenue.” All businessmen should understand profit and loss and what constitutes each.
A business degree is not required to be successful, but it wouldn’t hurt. On the other hand, some basic business knowledge is an absolute must.
If it’s hard to balance your checkbook, then it might be a good idea to keep your day job and forget about being in business.
Yes, you can hire an accounting firm that will tell you When make tax deposits, but they won’t tell you YEAH you need to make tax deposits.
An accountant can tell you if you made a profit, but not how you made it. If you don’t have a business background, get good business advice before you consider opening any business.
The fact is that all successful businesses play by the rules of sound business principles. A successful business is not an accident. The numbers tell the story that only 10% of all new internet businesses are successful or still in existence after their first 120 days.
Even the expectation of earnings is not reasonable for the first few months.
Have enough resources available for everything from startup costs to personal needs over a period of time. It’s called “capital” and there’s no alternative to a lot of it.
They don’t have the right mindset!
Most of us have heard the phrase “She’s got an attitude!” And it’s often a derogatory comment made about a person with a negative attitude.
The word “attitude” is important when thinking about start-up marketing companies. A good attitude or a good mindset does not guarantee success, but a bad attitude or a bad mindset can guarantee failure.
Let’s examine some attitudes that will absolutely guarantee failure:
1. I can work when I want. This is absolutely wrong! You can’t just work when it suits you. Expect many long and sometimes boring hours of hard work for your business to succeed.
2. I can get rich quick! This one is dangerous. While it is possible to get rich quick, there are far too many “get rich quick” schemes that are just ways for the unscrupulous to take advantage of the willing. Expect to be rich in as long as it takes. It is possible to make a very comfortable living with internet marketing, but it is usually not quick or easy.
3. I don’t need a business plan. The Internet business is still a business. All business principles apply to online businesses just as they do to traditional businesses. Is imperative that you have a plan for your success based on sound business principles.
4. Internet entrepreneurs have no boss. You are the boss. A good boss sees to it that all work is completed on time and in its entirety, or you will fail. Set a work schedule and goals to meet or you’ll find yourself working a job with a boss who does do those things and maybe for minimum wage.
Ways to avoid failure
Starting a business… any business… has no guarantee of success, period!
Even large multinational companies can fail in a new business venture. Failure is always an option and the chance or probability of success can be improved.
You can increase your chances of success by:
1. Make a business plan BEFORE starting your online business. To remind you of one of the things I said at the beginning: “If you fail to plan, then you plan to fail.” A plan for success is a requirement. Have the steps listed in great detail, including reasonable cost estimates to complete each step.
2. Expect to work hard to achieve your goals. Never expect things to be easy. Most of the time things are not as easy as they seem. Each successive step will require its own work, time, and patience. Sometimes things don’t work out on the first try. Be willing to keep going over and over again until you succeed.
3. Don’t be fooled by get-rich-quick schemes. The forests of the Internet are full of people who take advantage of those who are looking for quick and easy ways to get rich. Most are ways for the other person to get rich quick with their money.
Remember those stats! Ninety percent of all new Internet businesses fail in the first 120 days. You don’t have to be part of that majority. You can become part of that minority of 10% of successful Internet business companies. Find something that others are having success with – at the level you desire your own success, do what they do and you will have your own success. Be prepared to do what it takes for as long as it takes.