Giving away too much and getting nothing in return.īefore you’ve established credibility as a seller or an expert, offering something for free can turn into a conversion and long-term customer, especially for those entrepreneurs focused on offering services. “Whatever domain - through live chat, survey, email or phone.”Īlso, monitor social-media sites for brand sentiment and check out review sites like Yelp to see who isn’t happy with his or her experience and reach out. “Make sure you have some way of interacting with the people visiting your site,” Tobak says. With so many of our business transactions happening over the Internet, it’s easy to forget that customers are people who are way more likely to return to your website if they have a good experience. Patel also points out that “as your business evolves continue to adjust your price points.” 5. “The price is what it needs to be,” Salim says. Whether you’re selling a product or service, set the price at what it needs to be to make a worthwhile profit.Ĭynthia Salim, the founder and CEO of Citizen’s Mark, a line of ethically-sourced professional blazers for women, set the starting price for her product at $425 after considering the labor and material costs for her line. Instead, founders from the get-go should create a financial plan, detailing milestones and how much money it will take to reach these goals. Too often business owners scramble to raise funds when it’s already too late. “Know how much cash you’ve got to run your business, what your burn rate is and make sure that you have a plan to try to get more before you run out.” “There’s a very good chance that your company will run out of money before it makes any,” cautions Tobak. Not worrying about money.īe optimistic - just not about money. Instead, concentrate on tasks that will help propel your business to the next level. Don’t do this.īy getting sidetracked focusing on things like how your business cards look or the design of your logo, founders are wasting valuable time. While this directive may seem obvious, new business owners can get really bogged down by the details. “First, you need to get your business off the ground,” says Steve Tobak, founder of Invisor Consulting, a business strategy firm, and author of Real Leaders Don’t Follow: Being Extraordinary in the Age of the Entrepreneur. In addition, work out how much cash you’ve got and how long it will last. You need to know who your customers are, what you are selling and what people are willing to pay for your product or service.” While the big-format business plan is growing obsolete, Sujan Patel, vice-president of marketing at the software company When I Work and the founder of several SaaS startups, says, “You don’t need a formal 20-page business plan to successfully plan a business. “People regard the business plan as homework they don’t want to do but planning helps me - whatever my success is,” says Tim Berry, chairman of Palo Alto Software, which produces business-planning software and author of The Plan-As-You-Go Business Plan. You don’t need to have a formal business plan - but you still need a plan. To enhance your shot at success, try and avoid these 10 common mistakes when starting an online business. But there are many more mishaps business owners experience. While the barriers for setting up a company are low, the majority of people starting an online business fail largely due to mistakes that seem obvious in hindsight - such as overestimating profits or trying to be too many things to customers from the onset. Starting an online business begins with filling a need and building credibility, but the factors that go into making your online business a smashing success don’t stop there.
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