Common Reasons Online Business Startups Fail

It seems like starting a website should be easy enough – there are almost unlimited free online resources spouting off advice, it can be relatively cheap to launch a website, and, naturally, you have the best business idea for your website. So why is it that so many website startups fail?

1. Low Quality Web Design

One of the biggest mistakes that web startups make is having poor web design. Your website is the most important aspect of you company so why would you skimp on that? The overall design of your site is what initially draws people in, it’s what their first impression of you as a company is, so having a solid website design is crucial to your success.

2. Poor Content

In the same respect as low quality web design, having poor content on your site will be a huge turn off to people. To retain visitors you need to be able to provide content that wows them. You want to show anyone and everyone that visits your site the best you have to offer, so why would you fill your site with uninteresting or poorly written content?

3. Poor Marketing

Google SEO Chart

Google is one of the best places to start your online marketing – both simple SEO and paid ads are are good place to start.

You can have the best website and the best content in the world, but if no one ever sees it then it won’t really matter, will it? You can never retain a customer if you can’t even catch their eye to begin with. This is why it’s imperative to spend ample time marketing on social media, through email campaigns, and through traditional marketing routes. You have to be willing to put time and money into your marketing scheme to achieve the best possible outcome – after all, you reap what you sow.

4. No Passion

Picking a niche market just because you think it will be profitable is one of the worst reasons to start a business. You have to actually be passionate about what you’re trying to make money off of, otherwise it’s going to be a lost cause and people will be able to see right through you.

5. Not Enough Funds

When you don’t allocate enough money for a startup company, you run the risk of forcing the company to fizzle out because you lack the proper funds to keep it going – or worse, you risk driving yourself into debt.

Get rich quick schemes rarely work in life and the same holds true for web startups. The road to success can only be reached by hard work, dedication, and money. So if you’re contemplating launching a startup business, make sure that it’s something you really want to do, otherwise you’ll be doing your potential customers and yourself a disservice.

How to keep up to date with web design trends

A lot has changed in the world of web design in the past few years. For instance, today we use a lot of design terms such as minimalistic web design, intuitive interface, contextual menus etc. All these terms were unheard of or not so common, a few years ago.

Nowadays, there are a number of spectacular websites, which are dynamic in nature. These sites have been designed using some of the latest tools and technologies. Hence, if you too want to be a part of this new world and develop some of the most amazing and innovative websites, then you must be well-versed with the latest web design trends in the market.

Let us take a look at some of the ways how you can stay updated with the latest web design trends doing the rounds.

Take part in discussions with fellow designers

Take an active part in discussions with fellow designers on various forums and blogs or even face-to-face. This allows free-flow of information, which includes the latest design news and trends. For example, on one of these forums, you may get a chance to interact with an expert designer, who has used a certain technology on his/her website and end up getting a tip or two on that particular technology. Later on, you can implement whatever you learnt, on your website.

Make full use of the internet

You get a wealth of resources online, to update your knowledge in the latest web design trends. Let us take a look how you can use the power of internet for your advantage.

Social media sites – Social media sites need no introduction. Such sites are growing by leaps and bounds these days. You can use various social media sites like Twitter and Facebook to keep yourself updated with latest web design trends. For instance, you can visit various design forums, share your work, connect and network with the industry experts and fellow designers, join various groups, attend designer events and do lots more on these sites.

Design blogs – There are endless design blogs and even full-fledged websites dedicated to website design such as Smashing Magazine, Mashable, DesignModo etc. You can go through these blogs and websites and read reviews, comments, write-ups and learn numerous tips and tricks relevant to website design.

Smashing Magazine's logoeBooks – A number of latest web design ebooks penned by expert authors are available online. You can buy a number of such books at discounted rates or download some of them free of cost. Use these books as a reference when you design your sites.

Newsletters and magazines – Subscribe to receive various newsletters or online magazines from different sources. For instance, you can visit various tech-blogs or tech-news websites and sign-up to receive their newsletter/magazines directly in your inbox.

Browse the work of top designers

Whenever you find some time, go through the work of top/expert web designers. Many of these designers have their own sites. View their galleries/portfolios to get an idea about the latest, ongoing trends in web design and take a cue from them.

In conclusion

These are some of the ways through which you can know the latest web design trends in the market and design innovative websites.

The story of the online auction monopolist eBay

eBay. A firm which in 2011 had a net income of more than 3.2 billion. A website which almost everyone has heard of.

In an article I recently posted which explored whether there is really that much diversity online, I noted how eBay owned four websites in Alexa’s top 100 ranking – eBay.com, eBay.de, eBay.co.uk and PayPal.com.

There is no doubt that eBay holds a monopoly on the online auction market. But how did it get there? On September the 2nd 1995, eBay didn’t exist. One day later on September the 3rd it did, and after just over 3 years and 6 months, the site made its first major acquisition, the auction house Butterfield & Butterfield which it purchased for the price of $260,000,000 USD. A spend of 260 million after less than four years trading? eBay’s rapid early growth set it up to become a global internet phenomenon.

eBay kept buying up smaller firms, but not spending nearly as much as it had on its first purchase until mid-2000 when it forked out 318 million (USD) to buy Half.com. This was an amazing investment at the time, as even today it stands as eBay’s 6th largest ever investment, and it has made hundreds.

PayPal's logoThat said, the purchase of Half.com was to prove small fry to PayPal, which the now giant auctioneer purchased 2 years later in July 2002 for an astounding $1.5 billion. PayPal integration with eBay is (in my opinion) one of its greatest ever business moves. eBay is now able to seamlessly integrate processing credit card payments without having to pay millions every year to third parties. Fees eBay would have lost to PayPal are now extra revenues.

eBay wasn’t done though, going on to make the biggest purchase in its history, by buying Skype Limited for more than $2.5 billion. The auction site purchased the Luxembourg based company in 2005, only to sell 70% of its shares in 2009 for $2 billion – a healthy profit. Later, in May 2011, Microsoft bought Skype in its entirety for $8.5 billion, an investment which I am not sure it will see great returns on in the near future at least.

Skype's LogoeBay started to turn into a Microsoft and a Google. It was fast becoming an internet giant which bought up pretty much anything it could see turning it a bigger profit, or anything which posed a threat – in terms of competition. Just some of its purchases include StumbleUpon, Bill Me Later and Magento, the ecommerce web application.

Many say that eBay is one of the most notable successes the dot-com bubble, and I have to agree. Without the internet, eBay would be nowhere. It got in early and grew from the start, giving its competition very little chance.

Like it or hate it, eBay is an internet phenomenon, and also an internet giant. In my opinion it is successful down to luck: a good idea at the right time. Had it been thought of a year later, eBay might not be what it is today, had the internet not really taken off as it has and still is doing, eBay would again might not be where it is today.

What are your views on eBay? Were you aware of how much it owns and how rich it is? Is its monopoly unfair, or don’t you mind?