5 Mistakes NEW Online Entrepreneurs Make
1. Not Acquiring the Right Help
New entrepreneurs can blame much of their early failures to the coach or VA they hired. Often they have started their journey by being referred to one stellar person who knows how to create their success, but, for various reasons, it just didn’t work out.
If there is one thing you should have on your side when first starting out, it’s time. You’ll need that time to figure out the right things to do, and who is the right fit to help you do them. Take time to ask more people more questions. Take time to find exactly what you need, then find the right coach and VA to make that happen for you.
If you don’t use your time wisely, you probably won’t be using your money wisely either.
2. No Niche Clarity
There are so many online entrepreneurs that start their businesses based off someone else’s business as an example. They find out that someone with a similar skill set is crushing it online and they try to do the same. There is value in doing some of the same things that your competition is doing, but what you must understand is every business is unique, a mish mash of different personalities with different skill levels.
Your process and approach might be different, and your demographics could vary. Also keep in mind that if you do the exact same thing as someone else, to the exact same audience, you’re showing up late to the deal table. And you’ll need to be better. Knowing exactly who needs or wants exactly what your business has to offer makes it easier to find them. Don’t make the mistake of wasting your time and money on the wrong segment of your market.
3. Monetizing Too Early
It’s a wonderful feeling having a list. When you’re first starting out, 100 or 1000 followers or subscribers makes you feel like a line is forming at your virtual door step and it’s going around the corner of the building. For various reasons, ambition or necessity, new entrepreneurs will make their first attempt to monetize their list as early as possible. But that mistake is like waiting until you think everyone has arrived at a party and then promptly shutting down the bar.
You really need to keep creating and sharing content that people love. If you really want to know when the tipping point is for monetizing, it’s when your group or list starts raving about you so much that they become the main reason your list continues to grow. Then you know people are still going to keep showing up to your party because of you, not just for the booze.
4. Not Understanding Customer Acquisition Costs
I have seen hundreds of people go into group coaching programs, with little or no previous knowledge of customer acquisition costs. They are shown simple mathematical examples partnered with what seems like easy expectations in order to prove how their business will succeed by following only their coaches instructions.
Real data is so much better than simple math affirmations.
When rookie entrepreneurs start to take on coaching fees as well as pay someone else to create or support the tech side of their business to get things moving, they soon realize there is a lot of $$$’s going out… and that’s just to build a following or a list.
Right off that start they could be spending as much at least $2 per email address, some as high as $6, any more than that is a total disaster. This is before more money, time and effort is spent to convert your list to customers.
In order to really understand how much you should be spending, you must have a good understanding of ‘Lifetime Value’ (LTV) of a customer, ‘Churn Rate’ and many others. It’s not as simple as some make it out to be.
5. Forget To Operate Like a Business
It’s awesome to be your own boss. To have that flexibility you always wanted and totally in charge of your business. Too often in the early days of operating an online business, a large majority will suffer what I call ‘Productivity Drift’.
You start to let some of your deadlines, communication and the quality of your work slide, then for some reason, your other slightly larger tasks seem to deteriorate. This is because the detail that goes into running an online business is so important in maintaining the credibility and foundation your business is built on. This mainly happens in bigger businesses, and it often creates a loss, one way or another. But online businesses have a lot of moving parts and need to be maintained thoroughly. You need to hold yourself accountable. So don’t let the small stuff slide or you might see your dream situation drift away.
Learning how to be your own boss, grow your business and find the right people to support you on your journey is part of the fun and the fear of being an entrepreneur. It’s also a fact you’re going to make mistakes like the ones above.
Don’t forget to remind yourself of why you started your business in the first place, then accept that you will screw up, and just do better the next time.
To get support when you need it most, and share in a community of other entrepreneurs trying to make it just like you are, join us in the M Community Facebook group.