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Common Mistakes People Make When Starting an Online Business

Common Mistakes People Make When Starting an Online Business

If done correctly, creating an online business can be your ticket to wealth and success. However, the ticket does not come free of charge. Don’t fall into the trap of thinking that just because your business is online that it won’t take any effort to run it. Creating any business is hard work, and there are many pitfalls along the road to success that can swallow you up at any time if you’re not careful. Be cautious not to fall into any of the following traps:

1. Not knowing your audience

This should go without saying, but I’ll say it anyway. Before you even think of going live with your business, make sure you’ve done your homework. You can’t just put a product out there and hope for the best. You need to know who your target audience is. Know your demographic, their interests, their needs, and what they can afford. Leaving even one of these details out of the equation would be a crucial error that may lead to the downfall of your company.

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2. Worrying about insignificant details

There are definitely minute details you’ll need to focus on when starting an online business, but some things can take a backseat until you get off and running. For example, leave almost anything related to aesthetics until after you’ve established a customer base and are generating some income. Don’t worry about creating a sweet looking logo or business card before you start making money. Remember what Google’s original homepage looked like? I mean, it still is pretty simplistic today; but the service is incredible, which is what made the company so successful.

3. Spending too much too quickly

You’ve likely taken out a decent amount of loan money to start on your new venture, but keep in mind that this cash is going to run out much quicker than you realize. While you do have to spend money to make money, there’s no sense in putting all your eggs into one basket hoping for a major payoff. Be as frugal as you possibly can while starting out; once you start generating income and repaying the money you’ve borrowed, you can start spending on the extras that will help your business flourish.

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4. Undervaluing your product or yourself

Obviously, you’re going to want to attract customers any way you can. But don’t sell yourself short in an attempt to lure customers. Price your products or services with integrity. Think about it: if you underprice your products just to create a customer base, then jack up the price once you have your audience hooked, do you think they’ll stick around much longer? Not only that, but by underpricing your product, you’re sending a message that you don’t think much of what you’re selling. Make it affordable, but don’t undercut your competition to make a quick buck.

5. Ignoring your customers

As I’m sure you know, “the customer is always right.” If you don’t live by that maxim, your business is going to suffer. Your customers will tell you what they want. Listen to them. Solicit their advice through surveys and social media interaction. While you definitely want to have integrity within your company, don’t be so rigid that you ignore what your customers want, and end up losing major profits in the interest of “staying true to yourself.”

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6. Underestimating the time and effort it takes to succeed

As long as we’re discussing cliches that have been driven into the ground, let’s use one more: “Rome wasn’t built in a day.” An online business is no different than any other. Like I said, you can’t just assume that your product will go viral and you’ll end up an overnight millionaire; it’s just not going to happen. You need to stay diligent every single day if you want to experience true success. Throughout your first year (or even the first couple of years), you’re going to have to eat, sleep, and breathe your business. Get used to it!

Featured photo credit: Happy family mother and baby at home using laptop computer/evgenyatamanenko via farm1.staticflickr.com

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Matt Duczeminski

A passionate writer who shares lifestlye tips on Lifehack

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Last Updated on May 20, 2020

What Are Analytical Skills (And How to Strengthen Them For Success)

What Are Analytical Skills (And How to Strengthen Them For Success)

Everybody makes bad decisions. Some people, however, are more capable of making better decisions that inch them closer to success.

These individuals are not ruled by emotions, desires, or hunches. Rather, they depend on their analytical skills to overcome challenges regardless of urgency or complexity.

What Are Analytical Skills?

According to Richards J. Heuer Jr., a former veteran of the CIA,[1]

“Thinking analytically is a skill like carpentry or driving a car. It can be taught, it can be learned, and it can improve with practice. But unlike other skills, it is not learned by sitting in a classroom and being told how to do it. Analysts learn by doing.”

Analytical skills can be considered as one of the critical life skills that are not taught in schools. It comprises of visualization, critical thinking, and abilities for gathering and processing information.

Here’s a closer look at some of these abilities:

Visualization

Also tied to a person’s creativity, visualization is the ability to predict the possible outcomes of strategies and actions. In a professional setting, visualization involves the analysis of data – often through illustrations like charts, graphs, and detailed lists.

Critical Thinking

Simply put, a person’s ability to think critically can be measured by his or her consistency in creating reasonable decisions. It pertains to the ability to evaluate information, siphon what’s useful, and draw conclusions without being swayed by emotions.

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As a critical thinker, you’ll find yourself challenging assertions and finding loopholes in proposed solutions.

Computing

Whether you like it or not, you need to be comfortable with numbers if you want to sharpen your analytical skills. Bear in mind that computing encompasses other skills like cost analysis, budgeting, and performing general calculations.

In business, you need to use computations when weighing the risks and benefits of any given strategy.

Problem-Solving

Remember that analytical skills are used not just to understand problems, but also to develop the most suitable course or courses of action. This relates to your goal-setting skills, which involve breaking down and prioritizing between objectives.

Resource Management

Lastly, analytical skills involve some degree of resource management depending on the task at hand.

For example, professionals with a tight schedule must know how to effectively manage their own time – also known as one of the most important resources in the world.

Business leaders, on the other hand, must know how to manage company resources, including cash and manpower. Take note that the definition of analytical skills may change to match the requirements of a specific situation.

For example, upon hiring a web developer, analytical skills may refer to the ability to determine the needs of online users, understand web analytics for optimization, and identify visual elements that can match a company’s brand.

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The skillset above, however, should be applicable in most if not all scenarios.

Develop Your Analytical Skills for More Growth Opportunities

There’s no question that the right decisions lead to positive results. It doesn’t matter if you’re running a business or simply trying to climb the corporate ladder. By training your analytical skills, you position yourself for more growth opportunities while staying away from negligible actions you will regret.

For example, you plan to launch a new startup in your local community – but struggle to decide the niche you want to enter. Since you’ve been a technophile your whole life, part of you desires to invest in a gadget store. If you’re passionate about your business, success will come – right?

If you have sharp analytical skills, you begin to see your plans in whole new dimensions.

What are the possible outcomes of this venture? Does the local market have a need for a new gadget store? How much do I need to get started – and how much should I sell to make a profit?

Depending on your findings, you can determine the feasibility of your business idea without letting your emotions get in the way.

6 Ways to Strengthen Your Analytical Skills

There are several approaches when it comes to developing an individual’s analytical skills. For instance, psychologists agree that reading fantasy stories as a child can help sharpen critical thinking.[2]

Research also suggests that undergoing traditional education has a positive effect on a person’s IQ and analytical skills.[3]

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But as an adult, such opportunities to hone your analytical skills no longer apply. That’s why you need to devise a more deliberate, active approach yourself.

Below are a few strategies to get you started:

1. Ideate Business Ideas

Developing a profitable business idea, whether you pursue them or not, involves numerous challenges. You need a ton of research, computations, and problem-solving to create a tangible business plan.

You can organize your ideas with a note-taking tool like Microsoft OneNote or Evernote. Doing so will allow you to delve deeper into your analysis, organize your findings, and stay focused on roadblocks as well as how to solve them.

2. Leverage Analytical Tools

Aside from note-taking tools, you can also leverage other software that can help with analytical tasks. A money management app like Mint, for example, makes it easy to track your spending habits as well as manage your budget with visual tools. When it comes to prioritizing goals, you can use simple task management apps like Trello or Wunderlist.

3. Have a Personal Learning Library

Thanks to the internet, there’s a colossal amount of resources you can utilize to learn new skills, expand your vocabulary, and train your visualization muscles.

Social media networks like SlideShare and YouTube, for example, offer mountains of tutorials you can access to your heart’s content.

For a personalized learning library, you can download Instagram videos or GIFs from educational accounts like NASA Goddard and the American Mathematical Society. But if you prefer specific, technical skills, then a good place to start would be online learning platforms like Coursera, edX, and Alison.

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4. Participate in Online Communities

The internet is a great place to share experiences, opinions, and sometimes intellectual discussions with like-minded individuals. Reddit, for example, has a place or “subreddit” dedicated for every topic imaginable – from technology to entrepreneurship.

For structured debates, you can head to websites like Debate.org and let other users choose the winner via votes.

5. Seek Mental Stimulation

To keep your mind sharp, make it a habit to engage in mentally stimulating activities, such as chess, puzzles, and brain training apps. A great resource would be Lumosity, which contains dozens of cognitive games designed by teams of scientists and game designers.

6. Keep a Personal Journal

Finally, keeping a personal journal allows you to take a second look at everything that happened in your day.

Remember that writing about learning experiences lets you focus on the lesson rather than the emotion. It will help you analyze how you made your decisions, why you came to certain conclusions, and what you can do to improve in the future.

Here’s How to Create a Habit of Writing in a Journal.

Bottom Line

As an adult, you are required to face a myriad of challenges on a daily basis. Work, school, business, relationships – the list goes on when it comes to the sources of life’s problems. With analytical skills, you can confront and overcome any obstacle standing between you and your goals.

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Featured photo credit: Campaign Creators via unsplash.com

Reference

[1] M. S. Ramaiah University of Applied Sciences: Analytical Thinking?
[2] KD Novelties: Why You Should Read Classic Tales to Your Children
[3] Economic Inquiry: The Effect of Education on Cognitive Ability

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