10 mistakes to avoid when starting an online business

Starting an online business is an exciting adventure that can give you freedom and the flexibility to work from anywhere. However, it can also be challenging. 

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In this article we will provide you with ten common mistakes to avoid when launching an online business.  

1. Lack of a clear business plan

One of the biggest mistakes we see entrepreneurs make is starting an online business without a clear plan. A lot of people start businesses without a plan at all. This can destroy your business before you have even started. 

If you want to start a business, you need to be serious about it. An online business can give you a lot of freedom, but it also takes hard work and dedication. 

When you have decided you want to start a business you should make a business plan. A business plan is a road map to success. It contains your goals, target audience, market strategy and financial plans.  Without a business plan, you are navigating blind and there is a bigger chance of failure. 

Remember to change the business plan as you go! If the market or your plans changes you need to adjust the business plan. If you stick to a plan that does not match the market, you are more likely to fail.

Read also: 10 reasons why you need a business plan

2. Ignoring market research

Skipping market research is a common mistake. Many people think they know the market they are launching their business in. In some cases that might be true, but for most people there is a lot of research to do. 

It is very important to understand your market, competitors and your customers’ needs to tailor your product or service. If you don’t do market research you might end up offering something nobody wants or enter an oversaturated market.

Your market research is an important foundation of creating a business plan. You need to know the market to enter the market. 

Many people think market research is difficult and time consuming. It don’t have to be! However, the more you know about the market the more prepared you are. 

Start by mapping out what other businesses offer the same service or products as you do. You should also research your customer audience and costs of running a business.

When you have an online business your market is much bigger than if you have a shop where your customers are people that live nearby. This means that you customers can potentially live all over the world and the list of competitors is endless. 

Therefore, it can be smart to find out how you are going to get customers. Launching a business to “everyone” can seem like a smart idea, however it is easier to target a more specific target audience. 

3. Underestimating the importance of branding

Use some time to find your company name and how you want to brand it. Your brand is your business’s identity. It’s how customers perceive you and differentiate you from competitors. 

Company name, logo, visual identity, communication and tone of voice or some factors that are important when talking about branding. This is what makes a strong brand. 

Neglecting to make a strong brand can lead to a lack of trust and recognition in the marketplace.

Use your market research when building your brand. 

Read also: How to build a strong brand for your startup

4. Not focusing on the customer experience

An exceptional customer experience is key to retaining customers and generating referrals and good feedback. Failing to provide excellent customer service, user-friendly website navigation, and seamless purchasing processes can drive potential customers away, even if your product or service is top-notch.

What to focus on will of course depend on what type of services or products you are offering. However, there are some things you should focus on either way. 

It is important that you have the information needed available. If you have an online store, you should have information about shipping, delivery and returns on your page. The customer needs to know what to do and what to expect. This will also increase the chance of selling products. You also need to provide contact information. 

Imagine you are your own customer. What type of service would you expect? What is expected and what is considered great service?

If you want your customer to have a great impression, you have to make them feel like you would walk the extra mile. 

Read also: Customer service tips for small businesses

5. Overlooking financial management

If you have poor financial management, it can sink a business faster than almost any other factor.

Make sure to have budgets and keep track of both expenses and income. It is smart to plan a head, and think about what you would do if you can’t make the income mark. Having just enough money to keep running your business is an easy way to failure. Then you could quickly run out of funds or find yourself in debt. 

Keep in mind that it can take some time before your business starts making money. Some people assume they can start making money from day one. That almost never happens. 


You might have a lot of expenses in the start. You need computers, softwares, maybe pay a graphic designer for a logo and a webpage and so on. 


This should be in your budgets, and you need to make a plan of how you are going to make money and when this will happen. You might not be able to take out salary in the start, so make a plan for yourself as well. 

Read also: How to make a budget – the ultimate guide for businesses. 

6. Trying to do everything yourself

Many new entrepreneurs fall into the trap of trying to wear all the hats: marketing, accounting, web development, customer service, and more. This approach can lead to burnout and a lack of focus on the core aspects of your business. 

You might have to do a lot on your own in the start, but evaluate how you can work most effectively. It might be more effective if you hire help or outsource some tasks. 

Delegating tasks or outsourcing to professionals can help you concentrate on what you do best. And it can also help you make money! 

7. Not doing marketing

Even the best product or service won’t sell if no one knows about it. Create business accounts on social media you see fit your business, and make sure to keep them updated. Many online businesses get their customers from Instagram, Facebook or Tiktok. It is a way of creating a brand and selling your products and services. 

When you have an online business you must have a web page or social media page to sell your product or services. Also, not promoting and using online resources when you have an online business can be the death of your company

If your business has great growth you should look for more ways to market it. Relying solely on organic traffic can severely limit your business’s growth potential. Do some research and see if there is any way you can promote your business with ads or paid advertising. 

If you don’t know how to promote your business in the best way, there are many marketing companies out there that can help you. 

Read also: Using social media to promote your business

8. Setting unrealistic expectations

It’s common to hear stories of online businesses achieving overnight success, but these are the exceptions, not the rule. Some think they can just start a business, and the rest will just happen naturally. This is not true. Behind success there is a lot of hard work, planning and dedication. 

A lot of people start their own online business, to get more freedom. This freedom often comes after some time. In the start it will take a lot of time and effort to get the business up and running. Don’t be surprised if you have to work more than ever before the first months or maybe first years – depending on what your online business is. 

All in all, if you believe in your business idea and your online business you need to put in the effort that is needed to succeed. Set realistic goals and be prepared for it to take some time before you have more freedom and a solid income. 

9. Neglecting device optimization

With a significant portion of internet traffic coming from mobile devices, neglecting to optimize your website for mobile users is a critical error. A website that doesn’t function well on smartphones and tablets can result in lost customers and lower search engine rankings. Ensure your site is responsive and provides a smooth user experience across all devices.

When you do market research you should research what kind of device your target customer uses the most. If your typical customer is in their twenties they are most likely using their mobile device and not a computer. 

10. Being afraid to ask to get paid 

If your business doesn’t have an online cash register system, you need to send invoices. Create a good habit of sending them immediately. This increases the chance of getting paid as it is fresh in the customers mind. 

Need to send an invoice? With Conta you can send endless invoices for free. Sign up!

Regardless of how you want your customers to pay for your products or services, make sure they do pay. A lot of small businesses find it difficult to remind their customers of paying on time. However, if you have delivered a service or a product you have a loan to your customer. It is their end of the deal to pay. 

Read also: How to handle overdue invoices