Stepping into the virtual world of ecommerce is going to be one of the most educative experiences of your life.
The things you will learn by actually running your own online business can easily challenge anything you would find in a business course or MBA. However, you will make these common mistakes, but the best thing to do is learn from them and move forward.
Rushing the Math
Of course, one of the most important skills any entrepreneur should have while running any business is math. When starting out, most people run their online businesses like a hobby, and do not pay much attention to math, as they should.
The result is, hopefully, good demand, but lack of enough revenue to make the business venture worthwhile.
You are probably selling your products very cheap, but you have to sell more if you want to make some decent money. To find out how profitable your online business really is, use the formula; Profit is Demand multiplied by (Revenue minus Expenses).
Using the formula, you can tell what you are really in for. For example, your online store might have a high average order value (AOV), but the margins are so thin that you do not make enough money after you factor in costs.
Not Having a Content Plan
Lacking a content plan is another common mistake many new online entrepreneurs make. They simply do not put enough thought into content marketing, which makes getting social and organic traffic difficult.
For starters, writing about a boring niche is, admittedly, difficult. After all, how much can anyone manage to write about fountain ink pens? However, the key is not to create content according to your products, but according to your target customers.
Continuing the fountain ink pens example, consider people who would potentially use them, probably someone that is into stylish writing instruments and environmentally conscious. It is also possible that your target customer is also into luxury items, natural wellness and working out. These are all initial hooks that you can confirm with a little research.
When you build a content marketing strategy around such an ideal client, rather than the product, you get plenty to write about and connect with your target. Even for a very technical niche, you need to have something in common with the customer apart from the product you are selling.
Wasting Time with Menial Tasks
Once you choose an opportunity, the cost is that you will no longer have time for other opportunities. In other words, the cost of a single opportunity is every other opportunity you come across.
If you are bootstrapping your online business, chances are that you want to do everything for yourself. From setting up the website and tinkering with it to uploading product, writing description and doing all the marketing. You have successfully become a one-man/woman show.
Doing everything by yourself is great, but it also takes away too much of your time. The time you could have spent with family, creating new ideas or establishing business relationships.
What you need to do is automate as many of those menial tasks using applications such as quick and easy ELB monitoring. In addition, you can also find people who will do menial tasks like data entry and inventory uploading for a reasonable sum.
Each mistake made running your business sets you up to doing better in future, as long as you take time to reflect on what you ought to have done differently. By identifying the three common missteps above, you can avoid them, and achieve online and financial success even faster!