The internet is the perfect vehicle for starting a new business, in the good times and in the bad, with costs anything from zero to the sky, market reach potentially enormous from day one and the chance to trade 24 hours a day 7 days a week. The ongoing economic downturn has seen more and more people flee to the internet to start a part-time small business or even full time for many who are now unemployed. However, record start-up numbers are being followed by record closures, so what is happening? What is going wrong?

It seems that while more and more people are looking to create online income streams, there is less and less thought going into how they are actually going to do this. The headlines of webmasters making large amounts of money online are looking more and more attractive as the economy worsens, enticing new entrants to the online business sector – ill prepared and in too much of a rush to “hit the big time”.

There are also signs that many new “online business entrepreneurs” are giving up at the first sign of hard work and are not prepared to put in that extra effort. The problem with successful ecommerce businesses is the fact that they do take time to build up, they don’t become massive income streams overnight and there will be times when it is tough. You would not expect to make a fortune with an offline business overnight, so why do so many people expect to make big money online overnight?

The truth is that the more desperate people become the more new entrants we will see in the world on ecommerce. Too many people are setting up business when they do not fully understand how to promote, market and even design a website. It seems as though market research has gone out of the window with many people not even knowing the markets they should be selling to and what their potential customers even want.

This is a recipe for disaster and failure when it could be so very different with just a little more patience and effort.

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This entry was posted on Saturday, May 31st, 2008 at 12:18 pm and is filed under Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.