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10 Reasons Why Businesses Fail Woefully Online

Businesses fail everyday and people are getting heart-broken for losing their investments. It is no longer news that businesses fail woefully online; and this happens nearly every minute of the day.

Some happen as soon as the businesses are set, without really having the time to take roots. Others happen much later after the owners begin to have some hope of earning a decent living from their investments.

You may likely know one or two friends whose businesses have failed online and they are no longer interested to give it another trial simply because they believe it is never going to be possible to earn a living online. If you have been attending business seminars or meetings, the likelihood is that you might have heard also of friends who could not make it, and they are ready to tell you of different reasons why they think businesses fail online, whether these reasons are real or imaginary.

Get it at the back of your mind that no businessman ever planned to fail; but failure is an inevitable part of business. Unfortunately, a lot of people never plan for failure; everyone’s dream is to succeed. The harsh reality of life, however, is that things don’t always happen the way you wish.

Be that as it may, we should know that even as nobody is immune against failure, several successful entrepreneurs of today had failed at one time or the other in the past. But they went back to the draw board and were able to discover what led to their failures and what could be done to prevent future recurrence.

Failure is never final. So even if you fail today, there is the possibility you could succeed tomorrow, if only you can learn from today’s failure. 

Why Businesses Fail Woefully Online?

Now we know that businesses fail at any time because none is immune against failure. But the question we all should be asking ourselves is ‘Why do businesses fail online?’

We would never have a solution unless we know the cause of the problems. You are free to make your comment, observations and contributions at the end of this post. So, please keep them till the end, but make sure you read everything in this post to the last dot.

The following are some of the reasons why businesses fail online:

1) Poor Foundation:

Foundation matters a lot in everything we do.

If a child wants to be an orator, but starts his foundation from a nursery school that doesn’t know the basics of English language, that child might end up not able to fully develop his potentials. The same is true of online business.

If you start up an online business without the right training and without the right knowledge, the tendency is that it would likely crumble. You need to get the right tools, knowledge and reach for your business to take its right root.

2) Wrong Customers:

If you are marketing to the wrong customers, tendency is that you would never make any sales. When you stay a little longer in the market without making sales, you are bound to be frustrated out. When bills accumulate, staff salaries are outstanding and the cost of hosting your site, running advert and others are piling up, you are either going to make headway or get booted out of the system.

There is this saying that “You don’t try to sell refrigerators to Eskimos”. Trying to sell your writing kits for example, to people looking for solution to their skin disease, is an exercise in futility.

What kind of forums are you joining in order to expand your customer base? If you are selling Pampers and you go and join a weight loss forum for young men, would you ever make a sale? Of course, the answer is an emphatic “NO”. This is because young men looking for solution to their weight problem have nothing to do with Pampers. If you are marketing to nursing mothers or expectant mothers, it would make sense to sell pampers to them.

3) Staff Stagnancy:

One big mistake a lot of businessmen make, that is making their businesses fail woefully online, is failing to upgrade their staff. If the staffs you are using are used to those old marketing tactics of the 1960s, you are likely to fail because a lot of things have changed over the years.

One of the reasons some business owners refuse to train their staff is because they are afraid they might lose them after training them. However, it is better to train and lose a staff than keep an untrained staff because the untrained person would eventually wreck your business.

4) Poor PR:

This is about the strongest factor that determines the success or failure of any business (online or offline). If you do not know how to relate politely or diplomatically with your customers, you are not going to stay long in business.

Some companies’ support staff does not even know the ethics of phone calls; they answer their customers rudely and yet expect them to come back with their monies next time. Some even argue seriously with their customers trying to prove their customers wrong each time there is a misunderstanding. They forget that customers are always right. Such businesses are doomed to failure.

If your business is a ‘one man show’ where everything is determined by the owner, there is likelihood also for it to falter easily. Remember the old saying that “No man is an island”. When you make important decisions concerning your business and you never welcome other people’s input, you may go astray without even knowing it.

5) Not Meeting Deadlines:

If you form the habit of not meeting deadlines, your customers would never trust you. When they stop giving you projects/contracts, then you are as good as out of business. If you promise to deliver a project in one week, make sure not to exceed it by one day.

You can even deliver your job a day or two before the deadline. Those businesses that never meet deadlines don’t last long.

Other Reasons why Businesses Fail Woefully Online

6) Wrong Strategies:

What strategies are you using to promote your business? If you are adopting the wrong strategies, there is also the likelihood that your business would fail.

What kinds of e-books do you try to use in promoting your business? Do you have a mailing list? What kind of e-mail campaigns do you deliver to your list? What kind of promos or incentives do you offer? If the strategy you adopt does not appeal to your customers, there would be no success.

7) Balance Sheet Problem:

If there is an imbalance in your balance sheet (expenditure outweighing income), your business is bound to fail. For you to remain in business, you need to have some financial reserve.

So if you are dipping your hands into your income base and not refilling, sooner or later there would be nothing left to run the system. Not managing income and expenditure properly, has been one of the reasons why businesses fail woefully online.

8) Natural Factors:

These are factors beyond your control.

For example, the present economic meltdown has led to a decline in consumers’ spending ability. You cannot control that; if the consumers lose their buying power, your business would invariably be affected.

9) Poor Maintenance Culture:

Maintenance culture is needed to sustain success. If you neglect it, you are going to pay dearly for your negligence.

Let me ask you this, ‘When was the last time your business updated its website/blog?’ Failing to maintain your working tools is a way of inviting failure to come.

Everything that gets aged and worn out needs to be replaced in order to keep going. If you don’t maintain your database, for example, you would soon be out of touch with your customers, and that could spell a doom for your business.


Businesses fail woefully online for failure to observe and take care of the points mentioned above. If you are careful to note what these problems are, and you are proactive enough, the tendency to fail would be minimized. Take care of all you can and leave the natural factors that you cannot control.

I did not exhaust all the points that needed to be discussed on this subject. Your inputs are welcome. What do you think? Share your opinions with us; we all want to benefit from that which you have got to tell us. Be free to tell us areas where you disagree with my opinions.

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