Online businesses are arguably the easiest and most difficult ventures to start. Many online business structures are basic and simplified but as familiar as these structures are, they also easily crumble under very heavy competition. In fact, studies have demonstrated that about 90 percent of online ventures fail within their first quarter of operation. That is sobering indeed. But what exactly contributes to online entrepreneurs failure and how can you overcome it?
Getting Over Online Entrepreneurs Failure
Here is a 5-step plan to help you overcome a low point in your venture and get you back on your feet again.
1. Accept your failure.
It’s done, it’s over. Whatever it was that you did was not enough to sustain your business. If you were in denial, realize that this is perfectly natural but staying in that phase will not get you anywhere. Accept that you failed, mourn your losses, then roll up your sleeves to start again.
2. Assess what you did wrong (and what you did right).
A post-mortem or a SWOT (strengths, weaknesses, opportunities, threats) analysis of a failed venture is necessary to help you identify what worked, what did not work, and why. This will also help you determine the root cause(s) of your failure. Consider your business’ history, nature, structure, product/service, and marketing strategies. Next, identify the decisions that helped create certain scenarios in your business. When you are done, you will have a better overview of what worked, why, and what to do to prevent undesirable outcomes in your next venture.
3. Strengthen your finances.
Probably your most immediate concern is your cash flow. If you do not manage it well, you will lose what money you have set aside for your business. As an entrepreneur, you also have to manage expenses as well. Take a good look at what comes in and out based on your cash flow forecast. This will give you an idea where your money went and how much is coming in from where. You can then utilize this forecast to project your sales and expenses, and make the necessary corrections to prevent more losses.
4. Strengthen your connections.
If you haven’t harnessed the power of networking with other online entrepreneurs, now is the time to do it. Build relationships with other online businesses, ask questions, study other ventures, and if possible, find a mentor. Very often, you do not even have to pay to build your relationships. Look to others for inspiration, look closely at the strategies used by similar businesses, then review your own.
Once you have reviewed your business, it is time to get your bearings and plan for your future venture. Failure is merely a way for you to find something better and when you have a fresh perspective, you are in a better position to create a new and exciting business. The more you learn from your mistakes, the better you will be at believing in yourself and starting again.
Are You Ready to Move On?
Getting up again after a failure can be scary. If you need online business advice, you can talk to me on Facebook and Twitter to learn more about starting and sustaining an online business successfully.