Why web based businesses fail?

‘Internet Economy’ is a lucrative field today, with success stories such as Steve Wozniak and Apple computers and Sabeer Bhatia’s Hotmail. Naturally, everyone wants to get a share of these much ‘touted’ e-commerce profits. However, to succeed in the online world, businesses need to know all the possible causes of failure, even though it seems like an exercise in pessimism.
These are the common reasons why many startup e-businesses failWhy web based businesses fail?

Stale ideas

Web businesses that have nothing new to offer, and are mere clones of an already successful business, don’t succeed. Does your e-business sell a product that is innovative? Is there something completely new about your social networking website? The key to avoid typecasting is to stay fresh. Look for problems and needs that you can solve.

Not defining your customer

The first rule in selling is to know your customer. Some startup e-businesses offer a variety of services and products, not knowing the profile of the users. As a result, they cannot offer tailor-made services for any specific age group or nature of target audience and this reduces the chances of succeeding.

Ineffective Marketing

The best marketing strategy is a well calculated plan. Marketing is the backbone of any business. A web site that has been creatively marketed without any regard to user acquisition costs might become cost ineffective.

For example, even buying keyword ads is a complex process. A good entrepreneur buys keywords that people most frequently use in searches while having high relevance and low competing advertisers. A common mistake most businesses make while cost cutting, is not hiring professional marketing consultants. They work on instinct, and their marketing plans lack a well researched strategy. This makes their marketing strategies ineffective. So the websites they make have inadequate SEO, SEM, and low virality, which results in low traffic to their website.

Poor web designing

Today, most websites seem like clones. Businesses make compromises while designing their web pages. They use free software and badly designed user interfaces.  So, first-time visitors find the home page unattractive and it fails to register in their minds. It is highly unlikely they will ever go back to a web site that’s hard to navigate, is poorly designed and does not offer them something interactive.

A person who wants to use an online personalized gift services will look at several companies that provide the service. He is likely to choose the site which gets the first rule of ‘catchingeyeballs’ right, more so when you are dealing with the business of ‘feel-good’- gifts.

Web businesses with cluttered, badly color coordinated websites, which have long download time and unclear navigational tools don’t work. Only professionally designed, well branded websites, with original and relevant content can be effectively marketed.

Given these reasons, it is best to employ the services of a web designing company to ensure significant online presence.

Lack of web analysis

Web Designing Vs Web Development. Web analysis is a process of analyzing the behavior of visitors to a website and then enhancing and modifying the features of the website to maintain and increase the traffic. Many web businesses design a website and then forget about it; and the resources invested in web designing go waste.Such e-businesses have no feedback regarding their website, as a result of which they cannot maintain a competitive edge.

No Networking

An entrepreneur needs to be friendly and people-focused. It is good to have an extended professional and personal network, before launching a web business.Web businesses that de-prioritize good partner and interpersonal relationships lose out in the long run.

Bad time and money management

A failed web business means that the founders have not managed their finances well. It includes over-spending or ineffective spending. Such individuals overlook the basic tenet of every business- time is money. They spend a lot of time bargaining for small cost reductions, while delaying launching time and other activities vital to growth in the world of start-ups.

The most important thing that leads to failed web businesses is lack of commitment and passion towards the work. Such people may know all the theoretical pitfalls that they can encounter, yet put in a half hearted effort to avoid them when confronted in the practical world. Hence, they continue to fail.

Pankaj Pandey’s expertise as an online marketing consultant and his prowess in custom website development has helped him reach the pinnacle of success, helping various web based businesses achieve success along the way.

Question:Out sourcing work – web development

Laxmidhar swain: I have 2.5 yrs experience in web designing and 1 yrs of PHP exp.Now I am doing some local projects but I want to work with out sourcing projects. For this, what I will do. please tell me the procedure.

Answer: You need to focus on your core area of knowledge. Consider following point before approaching outsource work.

Make your portfolio website

Make a web identity you can use you’re your name as well or you can choose your company name. If you are a good designer put your best effort on design or Don’t hesitate to pay to a good designer.

Create an impressive website including following.

  1. About you or company
  2. Services you are offering
  3. Portfolio
  4. Contact
  5. Testimonial if any

Find a Source of work

You can find jobs on the web.  Here are some examples of places you could look:

  1. elance
  2. Guru
  3. Design Quote
  4. oDesk
  5. GetAFreelancer
  6. freelancer
  7. Project 4 Hire

If you have nothing to show for yourself portfolio for whatever reason then you had either better be a great talker or find something to put as a sample. This might mean:

  1. Creating an imaginary job for yourself and executing
  2. Offering your part services for free to someone
  3. Talking your last employer into allowing you to show some of your old work for a specific period of time

In any case, only the commitment to client is difficult for a client to hire you. From time to time you will be asked to do what is known as free pitching, where the potential client will ask you to do some of the work prior to payment. Simply do not offer your service as free. Offering a free service will down your value. Consider you are asking your car mechanic that you will only pay when you see desired result.

more detail: http://freelanceswitch.com/start/a-comprehensive-guide-to-starting-your-freelance-career/

Word Press Installation

While installing new theme to my blog , server does not allow me to do .. i found there is some issue with the file permission , can u plz reply me the solution…

Answer: You can  change theme folder permission to 755. If you are using dedicated or virtual dedicated server you need to add apache user in owner group. if you are not able to do that make Theme folder permission 777. remember 777 is not secure so revert the changes when you done.

Send me a mail i will do this for you.


hello pankaj,
i m sharad working in software company. can u guide me about me .htaccess file. In that i m working on dynamic websites where i use .htaccess file.where i use a only one file for produts (products.php).in each link the query string genrates www.example.com?products.php?catid=1&pid=12 i want www.example.com/categoryname/produuctname
can u guide i m new in .htaccess file


Sharad You can find lots of .htaccess tutorial on web. You can try to search Google for your need. Please go through http://www.yourhtmlsource.com/sitemanagement/urlrewriting.html. This Link have a good description on .htaccess rewrite. I am busy with some work i will post your solution soon. Thanks for asking me.