Mistakes in Starting an Online Business
From
Internet
Internet
Every week
I talk with entrepreneurs. We talk about what’s working and what isn’t. We talk
about successes and failures. I spend time with both complete newbies and
seasoned veterans, and everything in between.
I talk with entrepreneurs. We talk about what’s working and what isn’t. We talk
about successes and failures. I spend time with both complete newbies and
seasoned veterans, and everything in between.
I have a
pretty fantastic job.
pretty fantastic job.
One topic
that comes up over and over again with both groups is mistakes made in starting
businesses.
that comes up over and over again with both groups is mistakes made in starting
businesses.
Newbies
love to know which mistakes are common so they can avoid them. Veterans love to
talk about things they wish they had known or had done differently.
love to know which mistakes are common so they can avoid them. Veterans love to
talk about things they wish they had known or had done differently.
This
weekend I was at the World Domination Summit in Portland with 3,000 ambitious
people, and this topic came up dozens of times. “What do you wish you had done
differently?” “What mistakes do people make starting out?” “I wish I hadn’t…”
weekend I was at the World Domination Summit in Portland with 3,000 ambitious
people, and this topic came up dozens of times. “What do you wish you had done
differently?” “What mistakes do people make starting out?” “I wish I hadn’t…”
So I put
together a summary of the mistakes people shared with me, combined with the
mistakes we see being made every week through our work with new entrepreneurs
at Fizzle and elsewhere.
together a summary of the mistakes people shared with me, combined with the
mistakes we see being made every week through our work with new entrepreneurs
at Fizzle and elsewhere.
Here are
the Top 10 biggest mistakes made when starting an online business:
the Top 10 biggest mistakes made when starting an online business:
top 10
mistakes to starting an online business guide
mistakes to starting an online business guide
1. Waiting
too long to launch a product/service
too long to launch a product/service
When you
start blogging or podcasting to build an audience, it’s easy to get stuck on
the content “hamster wheel” for months or years without ever offering something
for sale.
start blogging or podcasting to build an audience, it’s easy to get stuck on
the content “hamster wheel” for months or years without ever offering something
for sale.
There are a
few reasons this happens.
few reasons this happens.
Some people
are waiting for some magic audience size “1,000 subscribers” or maybe “10,000
visitors” or whatever your number might be.
are waiting for some magic audience size “1,000 subscribers” or maybe “10,000
visitors” or whatever your number might be.
Some people
just can’t find the time to blog or podcast or make videos AND to build a
product at the same time. It’s tough.
just can’t find the time to blog or podcast or make videos AND to build a
product at the same time. It’s tough.
Some people
simply talk themselves out of creating a product because they’re afraid no one
will buy it. They don’t want to fail after putting in so much time creating
content.
simply talk themselves out of creating a product because they’re afraid no one
will buy it. They don’t want to fail after putting in so much time creating
content.
Whatever
the reason, this is a fatal trap. If you’re building a business, you need to
address the biggest risk head-on. The biggest risk you’ll face as a business is
in creating something no one will pay for.
the reason, this is a fatal trap. If you’re building a business, you need to
address the biggest risk head-on. The biggest risk you’ll face as a business is
in creating something no one will pay for.
Plus, you
need practice at building and launching products. Your first one might not be
all that good. The sooner you put something out there, the closer you get to
sustainable revenue.
need practice at building and launching products. Your first one might not be
all that good. The sooner you put something out there, the closer you get to
sustainable revenue.
2. Solving
an unimportant problem
an unimportant problem
If the
problem your business solves is important enough, you won’t even have to look
for customers. Imagine if you had a cure for cancer, for example.
problem your business solves is important enough, you won’t even have to look
for customers. Imagine if you had a cure for cancer, for example.
Businesses
fail all the time because they try to solve a problem nobody really cares
about. If you put your product or idea out there and nobody buys it, there’s a
good chance you should look for a more important problem, not a bigger
audience.
fail all the time because they try to solve a problem nobody really cares
about. If you put your product or idea out there and nobody buys it, there’s a
good chance you should look for a more important problem, not a bigger
audience.
3. Not
really listening to customers
really listening to customers
How do you
know if the problem you solve is important enough?
know if the problem you solve is important enough?
Listen to
your customers. Really listen to them.
your customers. Really listen to them.
Don’t just
listen to the customers who provide validation. Listen to the ones who ask for refunds
or buy your product but don’t use it. Listen to the people who tell you they
won’t buy, and find out why.
listen to the customers who provide validation. Listen to the ones who ask for refunds
or buy your product but don’t use it. Listen to the people who tell you they
won’t buy, and find out why.
Don’t just
pay lip service to your customers. You don’t have all the answers, they do.
There’s a reason why “the customer is always right,” because without customers
you don’t have a business.
pay lip service to your customers. You don’t have all the answers, they do.
There’s a reason why “the customer is always right,” because without customers
you don’t have a business.
4. Not
being different
being different
In most
markets, customers have different options to choose from. If your business has
competition, you have to give your potential customers a reason to choose your
offering over another.
markets, customers have different options to choose from. If your business has
competition, you have to give your potential customers a reason to choose your
offering over another.
I see this
all the time with new bloggers. They jump into a popular topic and essentially
mimic or copy what other popular bloggers are already doing. I suppose they
think “if it works for them, maybe it will work for me.”
all the time with new bloggers. They jump into a popular topic and essentially
mimic or copy what other popular bloggers are already doing. I suppose they
think “if it works for them, maybe it will work for me.”
But think
about it from the reader or customer perspective. If they find your blog,
they’ll be asking themselves “why is this blog worth spending any time on?” You
have to answer that question quickly and clearly, before they click the back
button.
about it from the reader or customer perspective. If they find your blog,
they’ll be asking themselves “why is this blog worth spending any time on?” You
have to answer that question quickly and clearly, before they click the back
button.
You can’t
expect to grow an audience by being an inferior version of some other better
known site. Even if your site or product is arguably better than the
competition, “better” is subjective.
expect to grow an audience by being an inferior version of some other better
known site. Even if your site or product is arguably better than the
competition, “better” is subjective.
Instead of
simply trying to be better, you need to be different. Then, when someone asks
why your site or product is worth her attention, your answer will be objective
and easy to understand.
simply trying to be better, you need to be different. Then, when someone asks
why your site or product is worth her attention, your answer will be objective
and easy to understand.
5. Choosing
a topic you don’t care about
a topic you don’t care about
Whatever
you choose to focus your business on, you’re going to need deep subject knowledge,
fresh creativity, and unwavering stamina.
you choose to focus your business on, you’re going to need deep subject knowledge,
fresh creativity, and unwavering stamina.
There will
be competition who cares more about the topic than you do. How can you compete
if the gap between your love of a topic and your competitors’ is wide?
be competition who cares more about the topic than you do. How can you compete
if the gap between your love of a topic and your competitors’ is wide?
This
doesn’t mean your business has to be your #1 “passion” or life’s work (most of
us don’t have one single passion in life), but don’t make things impossible by
choosing something you don’t care about.
doesn’t mean your business has to be your #1 “passion” or life’s work (most of
us don’t have one single passion in life), but don’t make things impossible by
choosing something you don’t care about.
If you love
your topic, stamina won’t be an issue. If you love your topic, creativity will
flow, and influence will be easier to build.
your topic, stamina won’t be an issue. If you love your topic, creativity will
flow, and influence will be easier to build.
Don’t ask
yourself what the world needs. Ask yourself what makes you come alive and then
go do that. Because what the world needs is people who have come alive. -Howard
Thurman
yourself what the world needs. Ask yourself what makes you come alive and then
go do that. Because what the world needs is people who have come alive. -Howard
Thurman
6. Starting
with vastly wrong expectations
with vastly wrong expectations
This won’t
be easy, and it won’t be quick.
be easy, and it won’t be quick.
Building a
successful business is a massive undertaking. You probably can’t do it while
traveling the world. If you have a full-time job, it will be much, much harder.
successful business is a massive undertaking. You probably can’t do it while
traveling the world. If you have a full-time job, it will be much, much harder.
If your
plan involves four-hour workweeks, or if your timeline is measured in weeks or
months, you will probably fail.
plan involves four-hour workweeks, or if your timeline is measured in weeks or
months, you will probably fail.
These are
the hard truths that people rarely talk about. Overnight successes don’t exist.
Your original plan will probably have to be completely re-written, maybe
multiple times.
the hard truths that people rarely talk about. Overnight successes don’t exist.
Your original plan will probably have to be completely re-written, maybe
multiple times.
Ask
yourself: will building this business still be worth it if it takes years to
get there? What if building the business is harder and more stressful than your
current job?
yourself: will building this business still be worth it if it takes years to
get there? What if building the business is harder and more stressful than your
current job?
Talk to
some entrepreneurs who have achieved something close to what you want to achieve.
Ask them what it really took. Ask them about stress and timelines and giving
up. Ask them not to sugarcoat it. Really listen. Then ask yourself if you’re
prepared for your own version of that.
some entrepreneurs who have achieved something close to what you want to achieve.
Ask them what it really took. Ask them about stress and timelines and giving
up. Ask them not to sugarcoat it. Really listen. Then ask yourself if you’re
prepared for your own version of that.
7. Spending
too much time thinking and not enough doing
too much time thinking and not enough doing
Not much to
say here that isn’t perfectly summed up in this quote:
say here that isn’t perfectly summed up in this quote:
Genius is
one percent inspiration, ninety-nine percent perspiration.
one percent inspiration, ninety-nine percent perspiration.
-Thomas
Edison
Edison
If your
ratio of thinking-to-doing is anything less than 80% doing, think again do
more.
ratio of thinking-to-doing is anything less than 80% doing, think again do
more.
As Chase
likes to say, entrepreneurs have two modes, CEO mode and worker-bee mode. In a
one-person business, you have to be both.
likes to say, entrepreneurs have two modes, CEO mode and worker-bee mode. In a
one-person business, you have to be both.
8. Going it
alone
alone
The only
reason my business exists today is because other entrepreneur friends wouldn’t
let me quit. Seriously, I tried to throw in the towel and start over with
something else, but they wouldn’t let me. They talked me out of it.
reason my business exists today is because other entrepreneur friends wouldn’t
let me quit. Seriously, I tried to throw in the towel and start over with
something else, but they wouldn’t let me. They talked me out of it.
No one can
succeed in business alone. You need people to make it work. Your customers are
people, your suppliers are people, your service providers are people.
succeed in business alone. You need people to make it work. Your customers are
people, your suppliers are people, your service providers are people.
Most
importantly, you need support from other entrepreneurs who are at similar
stages as you are, and from others with more experience.
importantly, you need support from other entrepreneurs who are at similar
stages as you are, and from others with more experience.
The more
connected you become with other entrepreneurs, the more normal your quest
becomes. You’ll no longer feel crazy or alone, and you’ll realize that we all
face obstacles just like you’re facing.
connected you become with other entrepreneurs, the more normal your quest
becomes. You’ll no longer feel crazy or alone, and you’ll realize that we all
face obstacles just like you’re facing.
The
entrepreneurs who talked me out of quitting were part of a little group that
met weekly to hold each other accountable. It didn’t cost any of us a thing,
other than an hour of our time each week, but it turned out to be the most
valuable resource I ever used in my business.
entrepreneurs who talked me out of quitting were part of a little group that
met weekly to hold each other accountable. It didn’t cost any of us a thing,
other than an hour of our time each week, but it turned out to be the most
valuable resource I ever used in my business.
Reach out
to another entrepreneur or two, and ask them to meet weekly. Share your
struggles and goals, and review your progress each week. This simple process is
so powerful.
to another entrepreneur or two, and ask them to meet weekly. Share your
struggles and goals, and review your progress each week. This simple process is
so powerful.
9.
Confusing “blog” with “business”
Confusing “blog” with “business”
Repeat
after me: a blog isn’t a business. A blog isn’t a business.
after me: a blog isn’t a business. A blog isn’t a business.
A blog is
an incredible platform for sharing your ideas, connecting with people and
growing an audience. The same is true of podcasting, YouTubing, or any other
place you might publish content for free.
an incredible platform for sharing your ideas, connecting with people and
growing an audience. The same is true of podcasting, YouTubing, or any other
place you might publish content for free.
Giving away
free content isn’t a business. It’s a tool for building influence. Don’t count
on turning that influence into sponsorships or advertising dollars. You’ll need
a more direct plan for earning an income if you want your blog or podcast to
pay off.
free content isn’t a business. It’s a tool for building influence. Don’t count
on turning that influence into sponsorships or advertising dollars. You’ll need
a more direct plan for earning an income if you want your blog or podcast to
pay off.
See point
#1 above about launching a product/service.
#1 above about launching a product/service.
10. What
would you add to this list?
would you add to this list?
This is my
list, from what I hear and see in the entrepreneurial world.
list, from what I hear and see in the entrepreneurial world.
Is your
list different?
list different?
What things
do you wish you had done differently?
do you wish you had done differently?
What
mistakes do you see new entrepreneurs making?
mistakes do you see new entrepreneurs making?
Please
share your thoughts in the comments below. You might just help someone avoid a
big mistake. If you think this list is helpful, please pass it along!
share your thoughts in the comments below. You might just help someone avoid a
big mistake. If you think this list is helpful, please pass it along!
