Why Do Online Businesses Fail? Unveiling the Key Factors Behind Online Business Failures

Why do online businesses fail in Nigeria? Before explaining why online businesses fail, please permit me to digress.

A few years ago, Bill Gates, founder of Microsoft Corporation, predicted that the Internet would produce many millionaires. Since then, every day and everywhere, new internet opportunities have kept emerging, making people rich beyond their expectations.
There are cases of individuals becoming extremely profitable within a year of starting an online business. So, why do many small businesses fail woefully in this lucrative business?

Why do online businesses fail in Nigeria?

From my experience and observation, here are reasons why more people are failing in online business in Nigeria: 

1. They expect to get rich quickly with little effort: Some Nigerians searching the Internet for online opportunities usually fall into the hype of many websites. These sites woo them to buy the packages that will show them how to make millions in a few days with little effort. My friend, the Internet does not work that way. Learning to market online will take time before you start making money. 
2. Most people lack knowledge of how the Internet works: They design a fanciful traditional website to sell their business. The truth is: people don’t go to the Internet to search for you or your business. They explore the Internet for information to solve a specific problem.
3. Using hosting companies that lack necessary marketing tools: A good hosting company should provide you with all the required marketing tools at a reasonable cost. The choice of a hosting company can significantly impact the success of an online business. Many businesses fail online because they opt for hosting companies that lack the necessary marketing tools to support their growth and maximize their online presence.

The tools include:

• Tracking and monthly performance of your site.
• Research tools for finding potential keywords.
• Search engine submissions.
• Autoresponder.
• Website backups.
• Domain name registration.
• Fast and reliable hosting.

It has been observed that most people doing online business in Nigeria only get a few of these tools from their hosting company.

  4. People lack motivation and determination: It has been observed that many people lack the motivation and determination to succeed in business. They do not persist in the industry long enough until they succeed.

  5. Lack of proper training: Many Nigerians doing online business do not take the time to learn how to market on the Internet. One of the significant reasons why businesses fail online is the lack of understanding of how the Internet works and the misguided approach to website design and marketing. 

    Many entrepreneurs mistakenly assume a visually appealing website will attract customers and generate sales. However, the truth is that people primarily use the Internet to seek information and solutions to their problems rather than explicitly searching for a particular business or brand.

To address the lack of proper training, aspiring online entrepreneurs should consider the following steps:

• Invest in online marketing education: Enroll in courses, workshops, or training programs specifically focusing on various aspects of online marketing. These resources can provide comprehensive guidance on Search Engine Optimization, social media marketing, content creation, email marketing, and more.
• Seek mentorship or guidance from experts: Connect with experienced online marketers or business professionals who can provide guidance, mentorship, and practical advice based on their successes and failures. Ask: why do online businesses fail? Their insights can help navigate the complexities of online marketing and accelerate business growth.
• Experiment and learn from experience: Implement a test-and-learn approach to online marketing. Continuously experiment with different strategies, monitor results, and adapt based on data-driven insights. Learning from hands-on experience is invaluable in understanding what works best for a specific business and target audience.

  6. Ignoring the importance of content marketing: When people search the Internet, they typically seek valuable information, answers to their questions, or solutions to their problems. Businesses that fail to recognize this and focus solely on showcasing their products or services miss opportunities to engage and provide value to their target audience. Implementing a robust content marketing strategy that addresses customers' pain points and offers informative articles, blog posts, videos, or guides can establish a business as a trusted source of information and attract a loyal customer base.

  7. Neglecting search engine optimization (SEO): Search engines are pivotal in helping users discover relevant information online. Businesses that overlook the importance of SEO fail to optimize their website, and content to rank higher in search engine results pages. Without considering SEO techniques such as keyword research, meta tags, quality backlinks, and website optimization, businesses miss out on organic visibility, resulting in decreased website traffic and fewer potential customers. They wonder Why do online businesses fail.

  8. Lack of targeted marketing efforts: Online businesses must understand their target audience and implement marketing strategies to reach the right people at the right time. A website or social media presence is insufficient if it fails to attract the intended audience. Businesses must invest in research and marketing tools to identify their target market's characteristics, preferences, and online behaviors, allowing them to tailor their messaging and promotional efforts accordingly.

  9. Lack of market research: Online businesses that fail often do so because they haven't conducted thorough market research. Understanding the target audience, competition, and market trends is crucial for success.

  10. Lack of customer trust and satisfaction: Building customer trust is essential for any online business. Failure to provide quality products, deliver on promises, offer reliable customer support, or protect customer data can erode trust and result in a negative reputation that harms the business.

It's important to note that these reasons are not exhaustive, and a combination of factors can influence the success or failure of an online business.

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Olabode Oruku is the chief executive officer of Oruku Consultancy Services. The company offers proven online and offline marketing training to small business owners. You can reach me on mobile phone 08033205456 or Click Here to Send Mail Click here for details of our next internet marketing training

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