Why Do So Many Internet Startups Fail Today?
Photo Credit - Clement Eastwood
Every day out there in the corporate world, even in the middle of the 2019/2020 coronavirus pandemic millions of people still drag themselves from their 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.
Working from home always sounds like an ideal solution. 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, no education, and quite frankly no hope of success. Failure is their only option and they don’t even suspect.
There’s an estimate of 90% of all Internet Marketing Business start-ups end in failure within the first 3-4 months. 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 investing in Internet Marketing rather than at a job or a brick and mortar business.
Of course, success is possible. There IS that other 10% that do succeed. The thing is success doesn’t happen by accident. And success isn’t just a crap shoot. Success happens because of some very important factors.
Success happens because people have the right mindset 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 mindset that they no longer have to get up and do some work. They think they can simply work when the feel like it and still make a good living. They simply do not expect to have to work long hard hours to attain success.
Wrong Perceptions about Internet Marketing
The 90% failure rate of new Internet businesses really isn’t all that surprising when you stop to think about the people who are trying to start internet businesses.
For some unknown reason most people think that running a successful internet marketing 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 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. They somehow think that the world is just going to line up on their website and hand over money. It is not going to happen.
No business runs on auto-pilot despite what you have read in all the hyped sales letters out there. It is true that well established internet marketing gurus maybe do not have to put in long, tedious hours on their businesses but it is a privilege that that has been earned after many years by putting in a lot of long and tedious hours.
It didn’t happen overnight for them and it won’t happen overnight for anybody. Most people are totally unprepared for the time investment that must be made for an internet marketing business to become successful.
No Business Background
One of the main issues is that the perception of people from the outside looking in is that “anybody can start a business”. While in general, this is not a lie, the reality is that the people who oversee a business need to understand the standard practices of business. They need to understand simple and basic ideas like acceptable over-head expenses in relation to projected income. Aspiring Internet Marketers need to understand concepts like revenue, profit and cost and what constitutes each.
Of course, a college degree in business in not essential for an internet marketing business to be successful, and there are many examples out there of this. Just accept the fact that if you have a hard time balancing your personal check book, it will be hard to make your Internet Marketing Business thrive.
So, if you have no business background, this is your starting point, go to Google.com and start researching, there are many resources out there, you can also watch these free videos to sync your mindset and what wealth means as well as basic financial concepts before you even consider opening an Internet Marketing venue. The information inside will blow your mind!
The fact is that all successful businesses operate on sound business principles. Successful businesses aren’t accidents.
The proof is in the numbers.... only 10% of new internet businesses are successful or are even still in existence after the first months of operation. It is not even reasonable to expect to make a profit from a new business enterprise for months.
So, you must have sufficient resources available to not only launch your business but provide for your own personal needs for an extended period. It’s called ‘capital’ and there is no way around it.
But again, your initial capital needs to be invested in YOU and your tools like a domain name, a hosting account, an autoresponder account and a system to automate product delivery for bookkeeping and tracking your sales and keep things organized.
The Right Mindset Just Isn’t There!
The other thing you need to look out for is your own thinking and approach to the whole thing. 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 the internet marketing mindset needed for start-up businesses. A good attitude... the right 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:
I can work when I want to. Wrong! You can’t just work when you feel like it. If you venture in Internet Marketing, expect to put in many long and very tedious hours of hard work to make your new internet enterprise succeed.
I can get rich quick! – You couldn’t be more wrong, and you are not only wrong but you are putting yourself in danger as well. There are many of crooks out there on the internet who are waiting for their next easy mark and if you are looking for a quick way to get rich, you ARE the next mark.
It is possible to make a very comfortable living with internet marketing enterprises but if anybody ever tells you it is quick or easy, they are lying to you.
I don’t need a business plan. There you are...wrong yet again. Internet business is still business. All of the business principles apply to online business as apply to brick and mortar business. It is imperative that you have a plan for success that is based upon these sound business principles.
When you have an internet business of your own, you don’t have a boss. Wrong again! You are your boss. If you aren’t a good boss who sees to it that work is accomplished on time and in full, you will doom yourself to certain failure.
Unless you are a boss who sets up a working schedule and establishes goals that must be met, you will find yourself working at a job under a boss who does do those things and maybe for minimum wage.
So, think about all these concepts, and avoid jumping in with eyes closed. Maybe this post is different from things you’ve find so far online or maybe a little harsh, but it is true, and it is meant to help you and let you know this: Don’t fall for false promises, and the every new shiny or “miracle” product out there, especially for the Internet Marketing Niche, where hype is part of every sales letter and unfortunately is full of scams.
Simply, sync your mindset as you would do with any business, you’ll need some money for your tools and your knowledge, and go for it.
Never Give Up!