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List of 90 Reasons Why 90 percent of Online Businesses Fail

The broad problems which make businesspeople fail are the lack of certain personal qualities, incompetence, an unbalanced experience or lack of managerial experience, lack of key marketing basics, competition, financial matters, and issues with their websites.

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In this piece, I am going to list 90 reasons why online businesses fail.

Want to read the summarily list? Click A summarily list of 90 reasons why 90 per cent of online businesses fail

Want to read the entire article? Click 90 reasons why 90 per cent of online businesses fail


• Lack of personal qualities

• Lack of Education or Training

Reason #1: Not getting educated or trained in chosen niche

Reason #2: Not engaging in lifelong learning in career area

• Lack of Association

Reason #3: The founders don’t associate with peers to network

Reason #4: You need honest mentors, teachers or coachers

• Lack of Confidence

Reason #5: Lack of high self-esteem

• Lack of the Right Mindset

Reason #6: Lack of patience / discipline / persistence / willpower

Reason #7: Laxity

• Self-destruction through poor decisions

Reason #8: Manager Dysfunction

• Too much Information

Reason #9: So much to learn, where do you begin?

• Lack of Time and Resources

Reason #10: No time to dedicate to a task

Reason #11: No resources to commit to building their business

• Lack of duplication

Reason #12: Cooperation is the key

• Lack of knowledge

Reason #13: Going into business for the wrong reasons

• Misfortune

Reason #14: Being in the wrong place at the wrong time

• Outside interference

Reason #15: Family pressure on time

Reason #16: Family pressure on money commitments

Reason #17: Advice from family and friends

• Optimistic, pessimistic or realistic?

Reason #18: Half-full, half-empty or both?

• Counting too much on technology

Reason #19: Technology is a means not an end

• Incompetence

Reason #20: Lack of planning

Reason #21: No Operating Goals and Objectives

Reason #22: Taking an emotional approach to pricing

Reason #23: Problems with taxes (Especially Non-payment of taxes)

Reason #24: No knowledge of industry pricing conventions

Reason #25: No knowledge of financing requirements and conventions

Reason #26: No experience in record-keeping

Reason #27: Living beyond the means of the business (or, Failure to plough the initial profits back into the business)

• Unbalanced experience or lack of managerial experience

Reason #28: Poor credit-granting decisions

Reason #29: Inefficient or inexperienced management

Reason #30:  Inadequate inventory management

Reason #31: No knowledge of suppliers

Reason #32: Poor or Non-existent Marketing Programs to entice Customers

Reason #33:  Wasted advertising budgets

Reason #34: Fraud, natural disasters and neglect

Reason #35: Poor Human Resource Management Skills

Reason #36: Not Measuring Goals and Objectives

Reason # 37:Lacklustre execution of goals and objectives

Reason # 38:Wrong Reasons

Reason #39: Fast and dangerous

• Lack of key marketing basics

Reason #40: No market awareness

Reason # 41:Poor Marketing

Reason #42: No profitable business model with proven revenue streams.

Reason #43: Entering Industry blindly

Reason #44: Entrepreneur falls in love with the product/business

Reason #45: Rigidity

Reason #46: Not Understanding the Target Customer

Reason #47:
Segmentation and Targeting

Reason #48: Not handling the Offer well

Reason #49: Poor customer care

Reason #50: Lack of deep dialogue with customers

Reason #51: No differentiation – Just Another “Me Too” Business

Reason #52: Failure to communicate value propositions clearly, concisely and compellingly

Reason #53: Expanding too fast

Reason #54: Jumping from one internet program to another

Reason #55: Lack of knowledge of self

Reason #56: Lack of a clearly defined exit strategy

Reason # 57: Uncontrolled Growth

• The competition

Reason #58: Ignoring or Underestimating the Competition

Reason #59: Not Being Cost Competitive

Reason #60: Not Beating Too Much Competition

• Financial matters

Reason #61: Poor planning, no money

Reason #62: No revenue model

Reason #63: Ignoring the balance-sheet formula

Reason #64: Not Paying Attention to Cash Flow

Reason #65: Not watching Accounts Receivables

Reason # 66: Lack of Capital

Reason #67: Lack of Cash

Reason # 68: Financial Neglect

Reason # 69: Too much money

• Website issues

Reason #70: No, or inadequate, presence online

Reason #71: No good design

Reason #72: No contact information on the first page

Reason #73: No essentials on an ecommerce site

Reason #74: Presence of garish or common clip art

Reason #75: Tiny text in an attempt to create a minimalist look

Reason #76: Unduly extravagant Flash introductions with background music

Reason #77: Poor frequency of updates

Reason #78: No enhancement of the user’s experience

Reason #79: Adjusting your website’s design to have a clean one

Reason #80: Finishing Touches

Reason #81: Wrong reasons for building websites

Reason #82: Bad Location, Internet Presence and Marketing

Reason #83: Lack of a marketing plan = No website traffic

Reason #84: No Metrics

Reason #85: Metrics are not the Almighty solutions

Reason #86: Poor Product Photography

Reason #87: Lack of traffic or programs

Reason #88: Lack of proper User Interface Design

Reason #89: Lack of quality content

Reason #90: Lack of quality E-Commerce Backbone/Software

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Want to read the summarily list? Click A summarily list of 90 reasons why 90 per cent of online businesses fail

Want to read the entire article? Click 90 reasons why 90 per cent of online businesses fail

Do you know any other reason why online businesses fail? Let us know this and/or any other point in the comment box below.

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