Why web businesses fail?

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Why web businesses fail?

Posted On : Dec-29-2010 | seen (509) times | Article Word Count : 726 |

‘Internet Economy’ is a lucrative field today, with success stories such as Steve Wozniak and Apple computers and Sabeer Bhatia’s Hotmail.

‘Internet Economy’ is a lucrative field today, with success stories such as Steve Wozniak and Apple computers and Sabeer Bhatia’s Hotmail. Naturally, everyone wants to get a share of these much ‘touted’ e-commerce profits. However, to succeed in the online world, businesses need to know all the possible causes of failure, even though it seems like an exercise in pessimism.
These are the common reasons why many startup e-businesses fail:
1) Stale ideas. Web businesses that have nothing new to offer, and are mere clones of an already successful business, don’t succeed. Does your e-business sell a product that is innovative? Is there something completely new about your social networking website? The key to avoid typecasting is to stay fresh. Look for problems and needs that you can solve.
2) Not defining your customer. The first rule in selling is to know your customer. Some startup e-businesses offer a variety of services and products, not knowing the profile of the users. As a result, they cannot offer tailor-made services for any specific age group or nature of target audience. And this reduces the chances of succeeding.
3) Ineffective Marketing. The best marketing strategy is a well calculated plan. Marketing is the backbone of any business. A web site that has been creatively marketed without any regard to user acquisition costs might become cost ineffective.
For example, even buying keyword ads is a complex process. A good entrepreneur buys keywords that people most frequently use in searches while having high relevance and low competing advertisers.
A common mistake most businesses make while cost cutting, is not hiring professional marketing consultants. They work on instinct, and their marketing plans lack a well researched strategy. This makes their marketing strategies ineffective. So the websites they make have inadequate SEO, SEM, and low virality, which results in low traffic to their website.
4) Poor web designing. Today, most websites seem like clones. Businesses make compromises while designing their web pages. They use free software and badly designed user interfaces. So, first-time visitors find the home page unattractive and it fails to register in their minds. It is highly unlikely they will ever go back to a web site that’s hard to navigate, is poorly designed and does not offer them something interactive.
A person who wants to use an online personalized gift services will look at several companies that provide the service. He is likely to choose the site which gets the first rule of ‘catching eyeballs’ right, more so when you are dealing with the business of ‘feel-good’- gifts.
Web businesses with cluttered, badly color coordinated websites, which have long download time and unclear navigational tools don’t work. Only professionally designed, well branded websites, with original and relevant content can be effectively marketed.
Given these reasons, it is best to employ the services of a web designing company to ensure significant online presence.
5) Lack of web analysis- Web Designing Vs Web Development. Web analysis is a process of analyzing the behavior of visitors to a website and then enhancing and modifying the features of the website to maintain and increase the traffic. Many web businesses design a website and then forget about it; and the resources invested in web designing go waste. Such e-businesses have no feedback regarding their website, as a result of which they cannot maintain a competitive edge.
6) No Networking. An entrepreneur needs to be friendly and people-focused. It is good to have an extended professional and personal network, before launching a web business. Web businesses that de-prioritize good partner and interpersonal relationships lose out in the long run.
7) Bad time and money management. A failed web business means that the founders have not managed their finances well. It includes over-spending or ineffective spending. Such individuals overlook the basic tenet of every business- time is money. They spend a lot of time bargaining for small cost reductions, while delaying launching time and other activities vital to growth in the world of start-ups.
The most important thing that leads to failed web businesses is lack of commitment and passion towards the work. Such people may know all the theoretical pitfalls that they can encounter, yet put in a half hearted effort to avoid them when confronted in the practical world. Hence, they continue to fail.

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<h1>Why web businesses fail?</h1> Author: <a href='http://www.articleseen.com/profile_Pankaj Pandey.aspx'>Pankaj Pandey</a> ‘Internet Economy’ is a lucrative field today, with success stories such as Steve Wozniak and Apple computers and Sabeer Bhatia’s Hotmail. Naturally, everyone wants to get a share of these much ‘touted’ e-commerce profits. However, to succeed in the online world, businesses need to know all the possible causes of failure, even though it seems like an exercise in pessimism.
These are the common reasons why many startup e-businesses fail:
1) Stale ideas. Web businesses that have nothing new to offer, and are mere clones of an already successful business, don’t succeed. Does your e-business sell a product that is innovative? Is there something completely new about your social networking website? The key to avoid typecasting is to stay fresh. Look for problems and needs that you can solve. 
2) Not defining your customer. The first rule in selling is to know your customer. Some startup e-businesses offer a variety of services and products, not knowing the profile of the users. As a result, they cannot offer tailor-made services for any specific age group or nature of target audience. And this reduces the chances of succeeding. 
3) Ineffective Marketing. The best marketing strategy is a well calculated plan. Marketing is the backbone of any business. A web site that has been creatively marketed without any regard to user acquisition costs might become cost ineffective. 
For example, even buying keyword ads is a complex process. A good entrepreneur buys keywords that people most frequently use in searches while having high relevance and low competing advertisers. 
A common mistake most businesses make while cost cutting, is not hiring professional marketing consultants. They work on instinct, and their marketing plans lack a well researched strategy. This makes their marketing strategies ineffective. So the websites they make have inadequate SEO, SEM, and low virality, which results in low traffic to their website. 
4) Poor web designing. Today, most websites seem like clones. Businesses make compromises while designing their web pages. They use free software and badly designed user interfaces. So, first-time visitors find the home page unattractive and it fails to register in their minds. It is highly unlikely they will ever go back to a web site that’s hard to navigate, is poorly designed and does not offer them something interactive. 
A person who wants to use an online personalized gift services will look at several companies that provide the service. He is likely to choose the site which gets the first rule of ‘catching eyeballs’ right, more so when you are dealing with the business of ‘feel-good’- gifts. 
Web businesses with cluttered, badly color coordinated websites, which have long download time and unclear navigational tools don’t work. Only professionally designed, well branded websites, with original and relevant content can be effectively marketed.
Given these reasons, it is best to employ the services of a web designing company to ensure significant online presence. 
5) Lack of web analysis- Web Designing Vs Web Development. Web analysis is a process of analyzing the behavior of visitors to a website and then enhancing and modifying the features of the website to maintain and increase the traffic. Many web businesses design a website and then forget about it; and the resources invested in web designing go waste. Such e-businesses have no feedback regarding their website, as a result of which they cannot maintain a competitive edge.
6) No Networking. An entrepreneur needs to be friendly and people-focused. It is good to have an extended professional and personal network, before launching a web business. Web businesses that de-prioritize good partner and interpersonal relationships lose out in the long run. 
7) Bad time and money management. A failed web business means that the founders have not managed their finances well. It includes over-spending or ineffective spending. Such individuals overlook the basic tenet of every business- time is money. They spend a lot of time bargaining for small cost reductions, while delaying launching time and other activities vital to growth in the world of start-ups.
The most important thing that leads to failed web businesses is lack of commitment and passion towards the work. Such people may know all the theoretical pitfalls that they can encounter, yet put in a half hearted effort to avoid them when confronted in the practical world. Hence, they continue to fail.About the Author: Pankaj Pandey has been helping businesses with their online branding with his proven expertise in <a rel="nofollow" href="http://www.pankajpandey.com">custom website development</a> and as an experienced <a rel="nofollow" href="http://www.pankajpandey.com">online marketing consultant</a>. Article Source: <a href='http://www.articleseen.com/Article_Why-web-businesses-fail_46541.aspx'> http://www.articleseen.com/Article_Why web businesses fail?_46541.aspx</a>

Article Source : http://www.articleseen.com/Article_Why web businesses fail?_46541.aspx

Author Resource :
Pankaj Pandey has been helping businesses with their online branding with his proven expertise in custom website development and as an experienced online marketing consultant.

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