New internet entrepreneurs entering the business marketplace find out quickly that the competition is fierce. The considerable number of upstart businesses across a multitude of web-based industries makes it difficult to excel with so many individuals targeting the same market.
Many home-based business “webpreneurs” step forth to fill the shoes of the title “business owner” every day. Many of these same business owners also close their business doors due to their inability to stay alive in the internet battlefield.
While many entrepreneurs possess a natural instinctive desire to succeed, let’s face it; it’s tough out there. In order for any start-up enterprise to be successful, certain key “ingredients” are essential in the business plan.
Here are the five key pitfalls determined start up entrepreneurs should avoid if they want their business ventures to succeed:
1) Lack of Business Intuition and Sound Judgement
Experienced successful entrepreneur blogs got where they are by making intelligent decisions and using sound practicable judgement. Making the right decisions in a business is a skill just like any other. Successful business management requires decision making skills. A well oiled business machine must be organized, have clear goals, and be managed efficiently.
2) Failure to Do Your Homework
Many a teacher has heard the ridiculous excuses made by students who neglect to do their homework. Students who excel in school do their homework, and business owners must do theirs, too, if they want to succeed. There are good and bad business ideas, and smart entrepreneurs do research and feasibility studies to determine how feasible their proposed ideas are. You must compile market data on the industry to evaluate what is already available and then determine how you’ll compete effectively in that market. This evaluation is essential and it will assist you with ideas on what you might do differently than your competition. A feasibility study should give you an indication of what to expect from your business efforts within a specified timeframe. A large majority of start up business fail early on because they neglect to “do their homework.”
3) Failure to Prepare a Written Business Plan
When you travel, you have a set destination in mind and a plan on how to get there. Operating a business should be no different, and in order to succeed you need a business plan. Your plan should include goals, objectives, and the intended business scope. Without a plan, it is difficult to stay focused and work toward arriving at the intended destination.
4) Limited Resources
Many a viable business idea with plenty of money making potential still fails due to limited resources. These resources include working capital, tools and equipment, and human workers. If you don’t have sufficient capital, there is the possibility of seeking out investors (in the case of home start ups family members can act as “investors”). If you do plan to approach friends or family for money, have a good solid business plan in written format for their review. Many successful business owners will tell you they’d much rather invest other people’s money in a new business venture rather than bearing all the risk themselves, regardless of how viable the business idea is. Same applies to any size of business.
5) Lack of Self Motivation
Self made entrepreneurs generally possess some distinctive traits; they are inventive, determined, problem solving, brave, and creative. They have a desire to succeed, and they like being in charge and in the thick of things. These are all excellent qualities to have when operating a business. However, even with all of these outstanding qualities, self motivation is a critical element. You must possess the ability to drive and motivate yourself in order to achieve your business goals, and you must be able to do so for the long haul.
A world of business opportunities awaits the young ambitious entrepreneur. Build your business on a strong foundation that can sustain growth. Develop your business skills and always be willing to learn new things. There are plenty of internet marketing advice out there that you can use.