It is quite often that those outside the online business world perceive those of us in the online business world as being less than forthcoming. Some even point the fingers and call online marketers Scam Artists, fraudsters or fly-by-night operators.
They convince themselves that because so many fail that there is something wrong with certain online businesses. They disbelieve those who say they are succeeding and that they must be lying or playing a con.
So, let’s take a look at the real world. It is a given fact that most businesses, yes brick and mortar ones as well, will fail. The numbers suggest the following depending on what stats you want to look at:
- Forbes states the at least 80% of entrepreneurs starting a business fail within the first 18 months
- USA Today states that only 1 out of 5 business survive past their first year
- 50% of small businesses fail after five years. (Small Business Trends)
- 3 out of 10 new companies “fail to survive” for more than 24 months. (Wasp Barcode)
When you look at the online world the numbers actually follow similar patterns. And, if you are afraid of these number then I would suggest that it is best to keep the employee mentality and work for someone else.
The numbers do not lie.
Being an entrepreneur is not for everyone just like any other business. There is no guarantee of success and there will be obviously those that fail.
The difference with those that fail online is they tend to make it their mission to discredit the business they found themselves affiliated. Ironically enough they use that very same platform (the internet) quite successfully I might add. The brick and mortar business simply gets to close their door and fade into the sunset.
The advantage of the online entrepreneur:
The one thing that online marketers have going for them that many of the startups do not is the affordability of getting started. You do not have to spend two hundred thousand dollars or more for franchise rights, buildings, employees, inventory and so forth.
There are many companies that have carefully scripted systems that if followed will lead to success. Your costs can be less than twenty-five thousand and even in some cases less than that.
In other words significantly less than your typical brick and mortar, however, there still are costs. How much success the online entrepreneur achieves usual depends on the individual following the systems that are laid out for them.
So why do so many still fail?
You see, in most cases, the failure is not in the business that the online marketer has chosen but rather the lack of commitment or know how.
Not everyone is suited to be an online marketer. Not everyone will understand the commitment that is required to proceed. The commitment to keep going when things seem tough.
Now, sometimes the problem is the help that is received is not right for them. However, if they truly understand business in general then they are able to change course if necessary and continue on their entrepreneurial journey
So, how is it even possible for you?
For starters, you need to decide that you really do want to change your current path. You really do want to work for yourself and create a life that you have control of. The initial phase of getting started is simply that easy, decide you want to make a change in your life.
The second gets a little more difficult as you now need to figure out what will really drive you to keep going when things are not working.
Ah yes, the proverbial “WHY” or “PURPOSE”. You see, it has to be so great that you are willing to learn everything you need to achieve your goal. You will need to create a plan that leads you to your end goal and beyond. You will need to work your business.
No matter how easy your business sounds, the reality is if you do not take the time required initially to learn what you need to know and then actually implement what you know then chances of succeeding are slim.
As I mentioned, there are many online businesses that have created a sound model for their members to follow. Their model is designed with success in mind. The failure is that sometimes those that get into the business are still not prepared or understand what some of the steps actually mean and therefore fail to implement them or fail at how they implement them. Can this be avoided?
I am going to go out on a limb and say unless you already have deep pockets and are lucky to find the right mentor the first time, then no.
We all learn differently. Not only in skill level, but in communication levels as well. Sometimes what a very successful person may discuss and share with one person with great results my simply be mumbo jumbo for another, resulting in failure.
Sound Business Practices:
What exactly would sound business practices be for someone new to the online business world? How is it possible as a new entrepreneur to avoid the pitfalls?
To be perfectly honest, you probably will not be able to avoid all the pitfalls but you can possibly make them less impactful on your progress.
I would strongly suggest that after you are sure this is what you want to do, and your why is big enough to keep you going that you carefully review all the training your company provides.
Create a plan that you can follow. Start small and when it is time, scale up.
Do not put all your financial eggs in one basket, being a business you will need to have the funds for all the avenues typical of business. That means not just your fees or your advertising but all the other necessary requirements for running a business.
There is marketing (advertising), education, travel, typical business expenses such as a computer or computers, various programs, printer, pens paper and so forth.
Professional expenses as well such as company fees, an accountant and a lawyer to guide you on what will be required of you. And, you will need time, yes actual time to spend on your business so if you are currently working a job, prepare to give up some previously enjoyed activities so you can work your business.
I know, most of you are seeking this new journey to free up your time so you can enjoy activities that hold your interest. This goal will be more than doable, but first, you will more than likely have to give up those things, at least for a short period of time while you set up your business.
Keeping that goal in front of you will lend perfectly to your diligence and will not go unpaid.
Why did I write this?
Well because I guess I am tired of hearing so many complain that whatever business they signed up for is either a scam or fraudulent.
I truly believe that in most cases it is more because of the lack of experience and unwillingness to take the time to learn and work the business using the business model that is set up for them then the actual business. The business may simply not be a good fit for them. You may be asking why would someone invest then not be willing to do the work and I can only say this since I have been in that position several times, the number one reason:
Lack of Belief
You have signed up but already are doubting your decisions, your lack of experience makes you so fearful of doing the wrong thing that you either invariable do the wrong thing or you do nothing at all.
Tony Robbins says it best when he describes it this way
whatever you focus on is usually where you will end up
So if you focus on doubt, disbelief, making mistakes or failure, you more than likely will do just that. It is first and foremost necessary to believe in what you are doing, so if you do not have that belief, then I suggest you hold off. Unless you are able to change your mindset, your failure is just around the corner.
You must believe in the business or product you are promoting if you do not, chances your customers will sense that. If you have ever been to any live event the one thing that the presenters have in common other than being successful in their own right is that they believe one hundred percent in what they are doing or how they are doing it.
There is no room for self-doubt for the successful person. They do not doubt what they are promoting nor doubt their abilities.
Any business that I signed up for and did not succeed in had anything to do with the business per say, it was more than I did not totally trust the business, or like the products when I tried them so my desire to succeed dwindled to the point I did nothing.
My doubt or lack of confidence in the product resulted in my lack of action. My lack of action resulted in my failure.
One thing for sure, it is easy to find your belief when the founder is driven, passionate and committed to his/her business. If the founder is constantly looking for ways to improve and build then you can be fairly confident in that business.
So ask yourself, does your business cover these topics:
1) Does it satisfy a current need in the Marketplace
2) Do you have the funds not only to start up but cover expenses as you go
3) Can you rely on support from the parent company; do they truly know and understand the business, the struggles you may encounter and are they willing to help you on your way
4) Can you be competitive ( note your goals will play a large part in this)
5) Are price points competitive, realistic for potential customers
6) Are the products priced realistically, worth the price
7) Does the business model not only meet your expectations but can you implement it
8) Marketing… have you the necessary skills to market effectively, or if not know how you will be able to
9) Support… is there an effective support system set up, not only for you but for your potential customers; knowledge, response time, sincerity is critical
Why are these things important?
Without these areas working for you, success becomes next to impossible. Prospects will become disenchanted, the business, your business, will suffer.
So once you have found your necessary Belief including the knowledge that the next 9 categories are satisfied you will be fine.
To summarize your entrepreneurial process:
Find your Why?
Determine what will happen if you do not succeed then you will know why you will not quit.
Create a Plan.
Be persistent and persevere. Recognize your limits, and find the right mentor to keep you moving forward. Do the work.
Find the right Company.
You must believe in the company, its products, its management and its vision. And if it is your own company, the same principles apply.
Take Action Keep growing