Common Mistakes made by Online Business Owners

Common Mistakes made by Online Business Owners:

Creating and running an online business takes work… a lot of work! However, we often see some common mistakes made by online business owners that prevent them from having the level of success they truly want and deserve. There are some general guidelines you can take to prevent these mistakes and therefore maximizing your time, resources, and efforts with your online business.

End result – having an online business that works with you and is in-line with your values, goals and vision.

I will list some of the most common mistakes online business owners make and what you can do the ensure that you do not do the same. And don’t worry if you are already making these mistakes. Your past does not equal your future. With a few adjustments on your part, you can rectify these issues and be well on your way to seeing the results you’d like.

Common Mistake #1 : Having the “Build It and They Will Come” Mentality

There’s nothing further from the truth than the “build it and they will come” mentality! The actual creation of an online business (website) is one tiny piece of the puzzle of a whole gamut of steps you need to take.

Although pushing that little button and seeing your site go live is exhilarating, and you are filled with hope that people will come rushing in any minute knocking at your virtual door waiting to buy your products and services; sadly enough, this rarely is the case.

You want clients and customers – you have to go get them!

Running on online business is not much different than running a brick and mortal store. You have to promote your business. In the real world it may mean distributing flyer’s and other marketing materials; in the virtual world it’s status updates, emails and PR releases.

In the real world you may have to entice people to come in with free samples, complimentary sessions, coupons, tastings, etc. In the virtual, your low hanging fruit to get people to visit your site may be an eBook, eCourse, white paper report, or audio training.

Common Mistake #2 : Putting All Your Eggs in One Basket

If you ran a bagel shop, would you rely solely on direct marketing such as mailing postcards to help get the word out about your business? Maybe. Some people would receive your postcard and just toss it right away. Some people may look at it, but not take action on it; whilst a select few will.

However, it would be my guess that getting customers using this method will be a long (and often expensive) process; and it’s quite possible you may be out of business before having a chance to turn a profit.

The same concept applies to your virtual business. Being strategic on how you spend your marketing dollars is smart business. You often have to dive into various marketing methods in order to evaluate their effectiveness. If you are investing all your money into only one method, how can you measure it’s effectiveness compared to other methods?

Spread your eggs. Try different baskets. You can always cut down on the number of baskets later … Which is smart business!

Common Mistake #3 : Not Using Free Resources Effectively

There are tons of free resources available for you to get the word out about your online business. But here is where the problem lies with using free resources: business owners either try to use it ALL, use too little, or use the wrong ones.

Unfortunately the only way to evaluate which resources to use and in what capacity is by doing your research and trial and error. Every business is different and what may work for one may not work for another.

I found the “lean and mean” mentality often times works best. Pick 4-5 top resource vehicles that you know your target market is present, and be an active force within those areas.

For example, if you are business coach and after doing your research you know that the your target market gathers on Facebook, LinkedIn, BNI’s groups, Twitter and business forums, than it would behoove you to focus all your time and energy in these areas.

However, it’s not only a matter of being present in these areas, but doing so strategically.

• What do you wish to accomplish by going to BNI events? How can you best optimize this method?
• Who do you want to target on Facebook and how do you plan to build that relationship?
• How can you effectively use LinkedIn so you voice gets heard amongst all the other “noise” already going on?

You get the idea…

Common Mistake #4: Not Reinvesting In Yourself and Your Business

The path to entry to starting a business has never been cheaper. You can literally have a online business up and running in a day and maintain it for less that $20 a month. Compare that to opening up a business in the “real” world where starting a business can cost you sometimes hundreds of thousands of dollars.

You are no longer subjected to having to lease out a small office and accrue all the overhead expenses that come with having that office. Depending on your business, you can quite literally work from your own home and the door to your office exists in virtual space. How cool is that?

However just because your business may only exist in the virtual world does not mean it’s not a “real” business. It’s just as real as those businesses you can see, touch and sometimes smell. Therefore, it’s important that you treat it so and constantly reinvest in your business.

This can take on two forms:

1. Reinvesting business profits into expanding your business growth
2. Investing time and financial resources into your own personal growth

The latter form often gets missed. Your own personal growth is just as important, if not more so, to the success of your business. You can only go as far in your business as your own personal growth allows you to.

For example, if you are the kind of person that believes the most you can make in your business is 150K, than that’s all you’re going to make. What if you can work on expanding that personal belief to be of someone who can make 500K?

Something to think about…

As you can see, some of these common mistakes made by online business owners are not without rectification. Simply making a few adjustments to your day to day operations (and doing it consistently) can yield positive results in your online business.

Here’s one exercise you can do that I know if you take the time to delve deep into the process, can be eye opening and transformational for you and your business:

1. Step into the shoes of your ideal client.

2. Walk her through every step in your business even before approaching with your virtual door.

• How did she get there? Where did she come from?
• How did she hear about you?
• Why did your message resonate with her?
• What does she see once she steps into your virtual world?
• What can she buy?
• What can she learn?
• What is the message you want her to know?
• What do you want her do while she’s there?
• How do you want her to share your message?
• How will she feel as she opts into your list to get your free offer?
• How will she feel once she leaves?
• What will she say about you and your business; and who will she tell?

Clarity is key. Knowing upfront all there is to know about what you offer, to whom, how they will hear about it and with which vehicles, will prevent you from making some of these common mistakes – thus catapulting you into a thriving business.

Look, we all make mistakes … It’s inevitable. Making mistakes is not the problem. Failure is not the problem. It’s what you plan to do about it.

“The formula for success is quite simple: double your rate of failure.” ~ Thomas J. Watson, Sr.

Much Success!

Michele Welch is a Personal Coach and Online Business Advisor. She has a blog where she shares tips on how to start your online business and grow it using SEO, Social Media Marketing and various other techniques. Read more about Michele here.