The Internet has made it easier for entrepreneurs to start their own companies and for customers to find the products that they sell. However, starting an online business requires good business sense and a long-term vision. When online entrepreneurs first start out, they may decide that a cool website is more important than the features it provides. This is a critical mistake that can turn customers off.
Another mistake is failure to gather and manage an email list, which are one of the best ways to find interested customers and get them to buy over and over again. Failure to build a list means paying for advertising to get your site in front of customers. It could also be the sign of a poor marketing or promotion strategy. Entrepreneurs may not understand the value of a good partner who can manage an email list or an advertising strategy.
This can have the effect of increasing marketing costs while reducing the return on investment for each dollar spent. The same is true when negotiating a contract. Although contracts are rarely enforced when things are going well, they will be enforced to the letter when things aren’t going well. Ultimately, it could result in lost money and a lost customer for the life of the company. Therefore, it is important to understand what the company needs out of a contract and hold firm when necessary.
Being an entrepreneur may provide an individual with the chance to make money from his or her ideas. However, being a small business owner may also come with risk. Therefore, it may be beneficial to hire a business attorney to protect a company’s interests.
Source: Entrepreneur, “The 7 Mistakes Entrepreneurs Make When Launching an Ecommerce Startup“, Stephen Tanenbaum, August 13, 2014