Email Us
Map Location

Why Do Many Online Startups Fail? (+ Proven Solutions)

Business Development

90% of all Internet business start-ups fail - according to Chris Ducker, a serial entrepreneur, business coach, and best-selling author.

That’s pretty alarming, especially since many people quit their jobs, use up all their savings, and some even go to the extent of exhausting their 401k just to pursue their dream of starting a business.

If you’re in the middle of starting an online business or are thinking of starting one, you probably want to do everything you can to make sure it succeeds.

But, if we’re all being honest here, when it comes to starting a business, whether it’s brick and mortar or online, there’s never a guarantee that it will flourish.

The good news is, there are things you can do to increase your probability of becoming a part of the 10% that do succeed.

As your go-to Internet marketing agency in Florida, we will share with you tips that helped our clients, both startups and established businesses, prosper in launching and running their business online.

Let’s get started!

What Are the Top Reasons Why Most Online Business Startups Fail?

There are a lot of factors that can cause an online startup to fail, but the most common reasons are the following:

  • Starting an online business without a plan
  • Lack of knowledge and experience on how to start an online business
  • Failing to analyze the needs and demands of their ideal customers
  • No business goals
  • Disregarding the importance of having a professional website
  • Not having a solid Internet marketing strategy
  • Not knowing when to seek professional help
  • Lack of quality content on their website

What Can You Do to Prevent Your Startup Online Business from Failing?

Start with a Plan


Sometimes people get too excited with the thought of having their own business that they tend to jump into things without being prepared.

The result? A failed business.

If you want to start an online business and increase your chances of succeeding in this venture, it’s important to think things through by having a plan.

A business plan is your roadmap to success.

It serves as a guide that will help you get through each stage of starting and managing your business.

In this document, you will discuss in detail who you are, what you set out to do differently, what your goals are, and how you’re going to achieve them.

If you haven’t written a business plan before, there are several articles online that thoroughly discuss how to make one.

We would also like to share some tips you can use to write a business plan that works for you quickly and easily:

  • Keep it short and simple. Avoid making a 100-page business plan that you will never read. Make sure your business plan is something you can use and refine as you run and grow your business.
  • Know your audience so you can create a brand that resonates with them. If your ideal customers don’t feel a connection with you, there’s no way you’re getting a sale.
  • Test the viability of your business idea before launching. Get feedback from your ideal customers by conducting a survey or going out on the streets and asking them personally or online.
  • Set SMART goals and objectives to make sure you’re able to allocate your time and resources effectively. SMART stands for Specific, Measurable, Achievable, Realistic, and Timely.
  • Be objective in writing your business plan. Don’t let your emotions get in the way of creating an effective business plan. Excitement can sometimes get the best of people and prevent them from foreseeing or identifying problems they might face along the way in launching or running their business.

Something you want to keep in mind is that it’s highly likely that you will change your plans going forward.

So, don’t get too worked up worrying about if your business plan is “perfect” or not.

Invest in a Professional Website

If you want to make a good impression the first time you interact with your ideal customers online, then you need to set up a professional website.

A professionally made website creates the perception that you’re legit and trustworthy, which is very important when it comes to convincing people to buy from you.

Imagine if you had a sketchy-looking website. Do you think people will feel confident giving you their money?

We don’t think so.

You see, consumers today judge a business by its website. That’s why you must impress them the moment they click on your URL.

Here’s a list of the things your website needs to be or have to make sure it creates a positive experience for its visitors and leave a lasting impression:

  • A good website should be SEO optimized to make sure it appears every time a potential customer searches for the products or services you offer. The higher you rank and the more you appear, the more you can generate traffic to your site and the greater your chances of getting a customer are.
  • A good website has a simple, branded design to allow people to become familiar with your brand. You want to be consistent in your choice of color, font, and imagery on your site and across every touchpoint.
  • A good website is easy to navigate and allows visitors to intuitively move through pages and quickly find the information they need. If visitors have a hard time getting to where they want to be on your page, chances are, they’ll leave.
  • A good website is pleasant on the eyes, not just in terms of color, contrast, font, and visuals, but also in terms of the pattern of reading. The F-shaped pattern is the most common way people scan text on a site, so you want to use this layout for your website.
  • A good website uses whitespace wisely to establish a focal point and allow visitors to focus on important information.
  • A good website is not only aesthetically pleasing, but also filled with high-quality, relevant content that provides value to its visitors. High-quality content that piques the interest of your target audience does not only keep visitors coming back for more but also showcases your expertise in the subject matter and establishes your credibility.
  • A good website loads fast and is mobile-friendly, so you want to make sure that your website is compatible with multiple devices and loads within three seconds or less to stop visitors from abandoning your site.

Stay on Top of Trends

Staying on top of trends is the key to remain competitive in a cut-throat industry.

We’re talking about everything from the latest SEO trends, to the ever-evolving consumer wants and needs, to the latest development in your industry.

The question is, how can you stay on top of trends?

Below are some tips you need to remember:

  • Make time to read. It’s the only way you’ll know about the latest development in your industry, any changes in SEO, or a shift in the online selling landscape. Follow thought leaders in your industry and subscribe to their newsletters or blog if they run one.
  • Be active in your industry by participating in seminars, conferences, training, and more.
  • Connect with people in your industry and outside of it to widen your network and expand your knowledge.
  • Tune in with your customers to know the conversations they have about your brand, find out how they feel about you, what they want, etc. You can listen to their sentiments by reaching out on social media or reading reviews on Yelp or Google My Business.
  • Use data and analytics to spot trends within your business.
  • Observe your competitors and see what they’re up to. Are they changing strategies? Are they doing anything new?

Invest in Search Engine Optimization (SEO)

SEO is the way to get a constant influx of traffic to your website and generate leads you can convert into customers long-term.  

However, ranking first for certain keywords or queries doesn’t happen overnight. It usually takes about three to six months before you start seeing results, so it’s best to get started now!


If you’re still unfamiliar, SEO is the process of making your website or eCommerce store more visible to searchers looking for the products or services you offer.

When your rank on the first page of the search engine result pages, your chances of getting a sale or any form of conversion are much higher.

SEO can get very complicated. So, to save you from any headache and to allow you to focus on running your business's daily operations, we suggest that you tap into the best Internet marketing agency in Florida to help you with the SEO side of your business.

Take Advantage of Social Media

Letting your network of friends and family know about your business by posting about your products or services and sharing content from your website is a great start to promoting your business.

Being active on social media is also an effective way to build your online reputation, establish trust among your audience, stay connected with your existing customers, and build rapport.

Leverage Paid Ads

While waiting for your SEO strategy to take effect, you can use Google Ads, Facebook Ads, Instagram Ads, or other paid ads platforms to promote your business and get more customers NOW.

Paid ads allow you to put your business in front of the right people at the right place and time, and convert them quickly into paying customers.

Here’s a list of why you won’t regret paying for paid ads:

  • You can run ads according to your budget. No need to spend beyond what you can afford just to get your business in front of your ideal customers.
  • You can layer your targeting to make sure your ads only appear in front of those who will likely buy from you or convert in any way. This feature ensures that you don’t waste any of your advertising dollars on people who are not interested in what you have to offer.
  • You can retarget those who have been to your website but didn’t buy anything. Retargeting allows you to put your business on top of their minds and urge them to come back to your site and finally make a purchase.
  • You can use ads to urge your customers to spend more.
  • You can get more customers now! No need to wait for six months.

Looking for an Internet Marketing Agency in Florida?


Without a doubt, internet marketing plays an important role in helping online startups succeed.

If you want to be a part of the 10% who do well in launching and running their online startup, use the tips we’ve shared with you above, and connect with an Internet marketing agency in Florida today!

At Digital Resource, we can help you with all of your Internet marketing needs, from SEO to social media marketing up to brand reputation management and content marketing. Contact us today to know how we can help you succeed, just like the rest of our clients!

Back to blogs

Related Blogs

Want to work for us?

Think you've got what it takes to hang with the pros at Digital Resource? Check out our Careers page to browse current job openings!

apply Today
Digital Resource Awards