* Why Do So Many Internet Startups Fail?

failEveryday out there millions and millions of people drag themselves from the warm, warm beds, take a shower, grab a cup of coffee, and head off to their jobs as they are thinking that there has got to be an easier way to make a living.  Every one of those people knows somebody who has quit the ‘get-up-and-go-to-work’ grind and is making a very good living by working on their personal computers from the comfort of their own homes.

Working from home sounds like an ideal solution to them. Many of these dissatisfied souls will quit their jobs and plunge head-first into internet marketing with no preparation, no knowledge of what they are doing, and no education.

The fact is more than 90% of all Internet business start-ups end in failure within the first 120 days. Yes, you read that right. NINETY PERCENT! This failure rate should be a warning to those who are considering trying their hand at making a go of working on the Internet rather than at a job in the brick and mortar world.

Of course, success is possible. There IS that other 10% that do succeed. The thing is, success doesn’t happen by accident. Success happens because of some very important factors. Success happens because people have the right ideas about internet marketing and how it works. They do not expect to get rich quick or be able to make a killing overnight and retire to a tropical island.

It is strange, but somehow the same people who wouldn’t dream of starting a real world business, think they can make a go of an internet business even though they have no business background. People will go into an internet business with the idea that they no longer have to get up and go to work. They think they can simply work when they feel like it and still make a good living. They simply do not expect to have to work hard or work long hours.

 

PerceptionWrong Perceptions about the Internet

The 90% failure rate of new Internet businesses really isn’t all that surprising when you stop to think about the people who are starting internet businesses.

For some unknown reason most people think that running a successful internet business is as easy as getting a website built and hanging out an ‘open for business’ sign. They couldn’t be more wrong.

Running a successful internet business of any kind requires self-discipline. People will start an internet business and think that they can party all night, sleep until noon and then make a living in 3 or 4 hours sitting in front of a computer. It isn’t going to happen.

Internet businesses do not run on auto-pilot. It is true that some well-established internet marketing gurus do not have to put in long, tedious hours on their businesses but it is a privilege that that has been earned by putting in a lot of long and tedious hours.

It didn’t happen overnight for them and it won’t happen over night for anybody. Most people are totally unprepared for the time investment that must be made in order for an internet business to become successful.

businessNo Business Background

All businesses have two things in common. They are BUSINESSES and they must be run like businesses. The people who are in charge of a business need to understand the accepted practices of business.

They need to understand some simple and basic ideas like acceptable overhead expenses in relation to projected income. Internet entrepreneurs need to understand profit and loss.

A college degree in business in not essential for an internet business entrepreneur go be successful but it sure wouldn’t hurt. Just some basic business knowledge is absolutely vital.

If you have a hard time balancing your personal check book, you probably should keep your day job and take your time at starting an internet business.

It is true that you can hire accounting firms that will tell you WHEN you must make tax deposits, for example, but these firms will not be able to tell you IF you need to make them.

Accounting firms can tell you whether or not you made a profit but not how to make it. If you have no business background you would do well to try to eed to get some good business advice before you even begin opening an online business. The fact is that all successful businesses operate on sound business principles.

It is not reasonable to expect to make a profit from a new business enterprise for several months.

You must have sufficient resources available to not only launch your business but provide for your own personal needs for an extended period of time. It’s called ‘capital’ and there is no way around the need for enough of it.

 

mindsetThe Right Mindset

You have most likely heard the phrase, ‘He has an attitude!” This is usually a derogatory remark made about a person with a disagreeable attitude.

But the word ‘attitude’ is an important one when discussing internet marketing start-ups. A good attitude – a good mindset can’t insure success but a bad attitude and a bad mindset can certainly guarantee failure.

Here are some wrong attitudes that will absolutely guarantee failure:

  1. I can work when I want to. Wrong! You can’t just work when you feel like it. You have to expect to put in long and tedious hours of very hard work to make a new internet enterprise succeed. It’s best to set a structure to your days.
  2. I can get rich quick! Wong! Selling the best product or service won’t mean anything until you gain credibility and people trust you.  That takes time and work. It is possible to make a very comfortable living with internet marketing enterprises, but it is isn’t quick or easy.
  1. I don’t need a business plan.  Wrong! Internet business is still business. All of the same business principles apply to online business as they apply to brick and mortar business. It is smart that you have a plan for success that is based upon sound business principles.
  2. When you have an internet business of your own, you don’t have a boss. Wrong! You are your boss. If you aren’t a person who can get specific task done in an organized and timely manner, you probably won’t succeed. Unless you are a boss who sets up a working schedule and establishes goals, you probably won’t succeed.

accomplishHow To Avoid Joining the Failing Masses

The thing about starting a business – any business – is that there is no guarantee of success under any circumstances.

Even big international businesses can fail at new business ventures. Failure can happen, but the possibility of success can be optimized.

You can optimize the possibility of success by:

 

  1. Having a good solid business plan in place BEFORE you launch your online business. There is an old saying: “Those who fail to plan, plan to fail”. A detailed set of plans for success needs to be made. You need to have knowledge of the steps from getting from point A to point B listed in detail that include realistic cost estimates for accomplishing each step.
  2. Expecting to work very hard to accomplish your goals. You shouldn’t expect everything to be easy. Things are rarely as easy as they look. Each step toward success requires work, time and patience. Sometimes things don’t work out right on the first try. You have to be willing to try again and again until you do succeed.
  3. Not falling for ‘get-rich-quick’ schemes. The internet world is full of those who prey upon those who are looking for quick and easy ways to become rich. Those ways do not exist.

Remember those statistics! 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 a part of that 10% minority of successful internet business enterprises.

Keep reading the articles and I’ll share with you wisdom that will help guide you forward in your success.

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