Ready to make money online, that’s why you join the online business. But there are many mistakes that new entrepreneurs can make to the urgency of creating cash flow.
Here are ten mistakes in our experience, employers when they put up a business:
1.Lanzarse only. It’s hard to build a business that can expand if you’re the only one involved. It is true that a public relations firm, web design or consult one person may need some capital to start and the price of hiring an assistant representative, sales administration or low employee may consume a large share of revenue. Solution: Make sure there is sufficient margin to allow prices are inclusive of personnel. Customers do not often have problems with the others, if they can contact you, the head of the project.
2. Seek advice from too many people. Get expert advice is always good, especially an experienced entrepreneur who has built and sold successful businesses in your industry. But get the opinion of too many people can delay their decision for the company never started. The answer: get the advice that you can go to regularly but always manage day to day business itself. “Summon your computer [advisory] with a conference call every two weeks or, at least once a month. You’ll want to do before!” Says Elysian Was sung, chief executive of 2 Chicks with Chocolate Inc., a chocolate company in Matawan, New Jersey.
3. Spend too much time in product development and sales are not enough. Although it is difficult to build a great company without great product, entrepreneurs who spend too much time to make adjustments probably going to lose customers to competitors with a strong sales organization. “I call [for errors] the ‘Field of Dreams’ entrepreneurship. If you build it, they will come”, said SANYO Dunning, CEO of Atman Global, Inc., a software company in New York, which has made the same mistake in their business own. “If the light stays focused on the sale, may be running out of money and energy before it can launch a product to market.”
4. focusing on the market is too small. It is tempting to try to capture a niche market, but the growth of your company soon hit a wall when chasing a very small market. Think of the entire basketball star who dreams of playing in the NBA. Because there are only 30 teams and each employs only a few players, it is likely that your child be the next Michael Jordan is very limited. Solution: Choose the larger market that gives you the opportunity to gain a larger share of the cake even if your company is just a minor participant.
5. Enter the market without distribution partners. It is easier to enter the market if the existing network of agents, brokers, manufacturer’s representatives and other vendors are ready and willing to sell your products in existing distribution channels. Fashion, food, media and other major industries work this way, others not so fortunate. So the business services such as public relations firms, yoga studios and pet care companies struggling to survive, alternating between prosperity and starvation. Solution: Make a list of potential referral sources before opening your business and ask if they will send the customer.
6. Pay more for the customer. Spend a lot of money on advertising to attract many customers, but it is a strategy that will take you to lose money if the company you cannot turn them into loyal customer’s records. A company or website that spends $ 500 on advertising to acquire customers who pay $ 20 per month and cancel your subscription at the end of the year is just a waste of money. Solution: Test, measure, and then try again. Once you have done enough testing to determine how to make more money selling products and services to customers rather than spending acquire customers, launch advertising campaigns.
7. Capital increase is too little. Many new companies think that all they need is enough money to rent space, buy equipment, supplies and filling to get customers through the door. What we often forget is that they also need capital to pay salaries, utilities, insurance and other expenses until the business starts making a profit. Unless you raise the kind of business where everyone works for the sake of art, you need to earn enough money to stay afloat to achieve revenue to cover costs and generate sufficient cash flow positive. Solution: Calculate the cost of the new company before opening the door, not after.
8. Capital increase too much. Believe it or not, collect the money too much can also be a problem. Companies with too many funds tend to be large and swollen, hiring people too many too fast and wasting valuable resources stand at trade shows, parties, and other image ads. When the money runs out and the investors lose patience (which is what happened 10 years ago with the technology bubble burst), the new company spending money they have to close. No matter how much money will be collected at the beginning, remember to save some for the bad times.
9. Not having a business plan. While not every company needs a formal business plan, a new firm that require significant capital to grow and more than one year should make plans for the benefit of how much time and money will need to achieve your goals. This means looking at measures that will make your business work and make a model to create a 3-year sales, profit and cash flow projections. “I wasted 10 years of thinking like an artist and not as a businessman,” admitted Louis Piscine, president of Avanti Media Group, a New Jersey company that produces videos for corporate and private events. “I learned to put some creative genius in predicting the business plan and set goals for growth and success.”
10. Thinking too much in the business plan. Although I have met many business people make impulsive decisions and do the necessary work, others are afraid to start to be 100% sure that the plan will succeed. A lawyer who worked with me a few years ago very wary of leaving their jobs with salaries that are paid well to start your business that never met a single bank or investor to finance it. The truth is that the business plan is not a crystal ball that can predict the future. At some point, you should close your eyes and jump.
Internet has revolutionized the way we live our lives, and offers an environment where anyone can compete against big companies. But how easy is to start an Internet business?
The first thing you need is a business plan.
The starting point for starting a business, both online and offline is creating a business plan.
You need to know your target market, know your competition, get resources, get consumer confidence, and make a site with quality information. Preparation and research are essential.
Market Analysis.
One of the most important when starting an internet business is to find out if your idea can be marketable.
Resources.
There are different types of resources available for your business. Internet has many sources and different strategies to launch your business and depending on your idea, you can use several tools for this purpose.
One of the most common mistakes committed by those who start an Internet business is to have very few resources, hoping to get great results. This is a formula for failure.
Create Web Site.
Creating a website is very easy. A simple website can cost about $ 50 a year, including domain, hosting and tools needed to create the Web site.
Keep the site clear and simple: people generate money if you trust the site and find what they want.
Marketing Strategy.
This is a point that most Internet businesses fail.
Too many people fall into the trap of developing your product or service and then sit and wait for the money. But how do you think you will find your potential customers?
Customer Relationship.
Make sure the customer gets what he wants at the right time. If you make a purchase, send the order as soon as possible. If you have purchased a downloadable product, make sure they have access to download in less than 5 minutes.
And as I said before, the website must be easy to navigate. If you sell your own product, make sure the customer has easy access to the buy button.
If the customer has a question, respond as soon as possible, and try to solve their concerns. Give more than you need.
Patience.
When starting an online business going to be small, so you have to have patience. If you have a job, do not leave until your business grows. At first you will earn very little and eventually start making more and more. But be realistic. You have to be motivated and believe in your business. Is constant and it works?
Most online business owners fail because they only make a mini Web site and little else. But if you make a great site, planned from the beginning, you are consistent and patient work, you’ll see that in the end it was worth it.
I am of the opinion that the Internet business the more competition there is the better. In fact, I’ve said on many occasions: one of the things that I need on the Internet is to have more competition.
Why? Because only in Spanish, very few of us that we are dedicated to the topic of business on the Internet, people have very little chance of choice. And if I have few competitors, ultimately going to have fewer strategic partners in which to cross promote our various products and services.
At the point I make is that competition should not be a negative factor to think about starting Internet businesses. In fact, when you are doing a preliminary analysis of the market, trying to see if your product, service or enterprise, will be viable or not on the Internet, there is competition. That is, it exists and other people who are giving solutions which target audience you are addressing. And the best way to compete with these people or their competition is to analyze exactly what the business proposition of them. Analyze exactly how they are selling, at what price they are selling under what property they are selling and how they are communicating with the target audience, do you have or have-newsletter? Do you have tools to build loyalty to those potential customers? Do you not have them?
I had never been a time in history that was so simple and so inexpensive to start an Internet business with global reach.
Makes ten to twelve years, was virtually impossible to think of starting a business where you could reach audiences from different geographical areas, from different parts of the world.
Today the Internet gives us that possibility at costs actually quite low. In fact, if we were to mount a physical business, the costs of installing and operating the business are quite high. You have to think lease, equipment, secretaries, personnel, pay for electricity, that sort of thing. And if you serve the public, you should also think a fairly large local, furniture… it is quite complicated. And it is geographically limited to a very small area. So, you open a shop in your town, obviously, has to pay the cost of having a place to serve only to that city. No one can talk about is doing a national distribution or anything like that, but is more local, regional or even less national, less international, less global.
On the other hand, you can have an Internet business, and sell both physical products and intangible products, you can sell services.
The costs of starting a business on the Internet are really very cheap; do not have to invest a lot of money on equipment and technology.