• Financial matters
Money is the lifeblood of your business. If you let these 9 ways drain the blood from your business, then you can say goodbye to your online dream:
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Reason #61: Poor planning, no money
In a well-developed business plan, it is stated how much money is needed for start-up expenditures and what funds are required to operate the business at various cycles until cash flow becomes positive.
Reason #62: No revenue model
How do you envision bringing in income? That’s the revenue model. Dotcoms which failed are the ones which did not know what their revenue streams will be as well as how they expect to make a profit.
Reason #63: Ignoring the balance-sheet formula
Dotcoms which failed certainly did not have financial statements drawn up showing the income and the expenses. Not being in the know, they found it easy to simply spend money before they earned it.
Reason #64: Not Paying Attention to Cash Flow
Financial planning is maybe the most important aspect of business survival. For, if money is the sinews of war then financial planning is what ensures that the money is always available.
Reason #65: Not watching Accounts Receivables
While receivables can make a business cash-strapped, lack of business acumen makes some entrepreneurs not pay attention to it.
Reason # 66: Lack of Capital
Thinking that their businesses will be making them money for their beginning or operation cycles, some new online entrepreneurs go into a spending spree which deny the succeeding cycle/s the money necessary to fund them.
Reason #67: Lack of Cash
Simply running out of cash is the primary reason often given for the closing down of some online businesses. But as we saw above, the troubles started well before that financial collapse came.
Reason # 68: Financial Neglect
Cash is the lifeblood of any business. So, once that runs out the business is dead. To prevent that, strict financial record-keeping is a must for small business entrepreneurs. This way you have knowledge of every penny going out or coming in.
Reason # 69: Too much money
If too little cash is bad news for a company, too much is too. You know the saying Too much of anything is bad, don’t you?
All the 9 points discussed above show how important financial issues are in your online business. But what will an online business be without a website? Unimaginable. So I will handle some issues with websites next.
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Want to read the extended piece? Click here to 90 reasons why 90 percent of online businesses fail – Part VI
Click here to go to Summary list of 90 Reasons Why 90 percent of Online Businesses Fail – Part VII