Online entrepreneurs will face many hurdles in their business careers. Here is a list of five of the most challenging.
Developing a Clear Focus
This is actually one of the biggest challenges that an online entrepreneur may face. You may have developed many great ideas that you want to integrate into your online business. You may also be constantly moving from project to project with each project being wildly different than the last. While this may fulfill your need for creativity, it is probably not a very solid long term strategy. Instead, try to make the focus of your online business clear and exact.
Finding and Retaining Talent
One of the most difficult challenges any business faces is finding qualified talent. Not only is this talent needed for the business to be successful from the onset, it is also integral to continued success and future growth. You have to find individuals with the right skills for the positions you need in your online business. Hiring the wrong people can be a great waste of time and resources. You must also make sure that the people you do hire are satisfied enough with their positions and future prospects with your company that they do in fact stay with you for the long term. This can become even more complicated when many of your employees telecommute as is the case with many online businesses.
One of the greatest challenges faced by online entrepreneurs today is the general climate of the economy. Even when a recession has technically ended, economic growth may be extremely sluggish. Unemployment is always a lagging indicator. When there is high unemployment, consumers are reluctant to visit websites to splurge on goods and services. In bad economic times, financial institutions are also reluctant to give entrepreneurs the credit they need to start or expand their businesses. The economic climate should certainly factor in heavily into any online entrepreneur’s plans.
In very competitive business environments, one of the easiest ways to develop an edge over competitors is through the use of technology. In the online business world, this is even more important. Unfortunately, a lot of first-time online entrepreneurs are not familiar with all the new technological innovations in their industries. You will certainly need to implement more technology and computer software than simply purchasing hosting space for your website. Many also don’t have the skill-set needed to implement such technology effectively. New technology can also be extremely expensive. Online entrepreneurs must then be careful to only purchase technology and software that can benefit their businesses in ways that exceed the costs associated with acquiring and implementing it.
One thing that many would-be online entrepreneurs forget is that your business will have to comply with numerous local, state, and federal regulations. Figuring out how to comply with all these regulations can be quite a task. It becomes even more complicated since most online businesses have clients in many different states and countries. On the plus side, subsidies and government grants may be available to you. However, you must first learn how to successfully acquire such government assistance for your online business. That can also be quite tricky.