Starting Online Business and The Mistakes
Starting online business is not easy, I never (even once) say that it is. You have to consider a lot of factors and elements, every little detail counts. During the period Dropshix grows, many people asked me how easy it is to start an online business. I always answer, "Starting online business is simple, require very low capital, but it requires a lot of hard work". The most important asset that you need to have is passion. Because it will require a lot of your attention at the beginning, a lot of time to learn and try various techniques of marketing. So it's not easy starting online business, it requires hard work.
This article will discuss the most fatal but (strangely) the most common mistakes people do in starting an online business. It's fatal because of most of the time people will give up their online business once they realize these mistakes at around 2-3 months of their business age. That's why I think it's very important for me to share this information so that you who want to start your own online business will not fall into the same mistake. Especially, since this article is based on true cases (Dropshix users).
2 Biggest Mistakes That People Attend to Do
From what I found, there are 2 biggest mistakes that people attend to do. It will need a further research though in order to find why this has become the most favorite mistake for people to make. The most interesting thing about it is that these mistakes are often underestimated, even by top internet marketers. But for those who are just trying to start an online business, these mistakes are a mood killer, a spirit destroyer, and a lot of the times people are blaming me for not giving these facts at the first place (sigh).
In general, there are 2 fatal mistakes.
- Choosing a "too specific" domain name.
- Not using a payment gateway and accept bank cheque as a payment method.
We'll get to the details below.
Choosing a "too specific" domain name
Using a specific domain name when starting an online business is a very terrible idea. Many times it will backfire you and cost you everything you have built. For example, "hellokittyaccessories.com" or "tysonboxingshop.com". Those are a very bad domain name to start your online store. Because those names are most probably already have their official store and the first impression that your viewers will think that your shop is a scam business.
Other bad examples are "cathykitchenstore.com" or "leahpapercrafts.com", this is also bad names to chose with. Because you already describing your entire business in a single domain. "What's wrong with it? I'd like my online presence sounds more directly self-explained.". It's not wrong if you already own the niche, or when you already being known for that particular category. But if you're starting online business, this means that you can't switch niche when the sales number is very low.
Stuck With a Niche
When you think you are stuck with a niche and you can't expand or switch niche, this is a really a mood killer. The first thing comes in your mind is that all you've done is for nothing. Not good, because you can't start a business with what you want to sell but with what you need to sell and has people looking for the goods. It's true that we can research this with many fancy tools, but what I want to express here is that you can't define your business in one shot. Even when you already did your homework in researching a market niche.
There is no 100% warranty that you will own that niche. You have to remember that there are competitors, there is market competition, and above all, there is luck also take part in your business. The key to a successful business is adaptive, you have to be able to switch niche, change niche, expand variations, or even narrow your product variation. With those domain names, you already narrow down your options. It's true that we can buy a domain with a relatively cheap price, but we also need to consider the hosting price, the SEO efforts we have done and other marketing works that have been done.
Choose your domain name carefully
Choose your domain name carefully, pick a name that is more generic or describes your goals instead of the business itself. I always use a catchy name but general, something like "buywithless.com" or "crazycheapstore.com". This will give you an advantage in researching market niche, you can be more adaptive with your items once you get into the marketing part in building your online business.
Remember! Not because of you already using a general domain name, you then make your store looks like a marketplace with many categories and various products. Keep your product line always specific to a theme or a niche, this has proven to be the most effective selling point. When you specialize your store to a certain topic your store looks more trustworthy, adding several users testimonials will make better increase the trust level of your buyers (Dropshix has the feature to import reviews and feedback from the source store).
Not Using A Payment Gateway and Accept Bank Cheque As a Payment Method
When starting online business, you will need to market a lot. Not using a payment gateway like PayPal is a very big NO. There is no reason you should get stuck with the payment process and its stuff like currency, validity, escrow, and many more. Payment gateway like PayPal is a good solution. Your users also feel more secure, because refund process is guaranteed. On the other hand, you will benefit more in the short and long run. The benefits are:
- Currency exchange is already calculated by the service.
- Easier for you to split the business capital and personal money.
- Manage all transactions under one system.
Accepting bank cheque is not a good idea, it will add more complicacy in running your business. This is not necessary, especially during the starting phase where you need to focus on entering the market. In the later stage, you will need to accept though, especially if there is a big order with a low per item profit.
So there you are 2 most fatal mistakes that you should avoid when starting online business. I would like to remind again that the most important key in a successful business is the adaptability. This article might give you an idea to start your business with minimum risk, but the process of growing your business is the most important part.