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Realistic Expectations Mean Real Profits

Unfortunately the online marketplace is also the great hope of failed business people everywhere. Thousands of would-be millionaires have jumped onto the Net in hopes of spinning technology into gold. But the Net is a communications medium, no more. When you open your online business, do it with realistic expectations. If your expectations are grounded in reality, you'll know you need to put the necessary effort into marketing. If you expect the Net to do your marketing for you, you'll be sadly disappointed. Here's how to develop and live by a set of realistic expectations on the Net.

Conduct diligent research

Cyberspace won't turn a bad business idea into a good one, and it won't chase your competitors away. Before venturing into the online marketplace, conduct diligent research about the feasibility of your business idea and the odds of your being able to sell it online. The Net just isn't suited for every business on the planet. For example, putting your local rug cleaning business or muffler shop online probably won't increase your business. Your business purpose must be matched to the realities of online marketing and sales.

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Make a business plan

If you're convinced your idea is good, make a detailed business plan that identifies your specific market, your customers, your competition, and your projected income and expenses for at least the first year. Don't assume the money will roll in from Day 1, either. Early online marketers made wildly optimistic projections about sales and profits based on the total number of people thought to be online, but fewer than 15% of cybernauts today are buying online. Set conservative goals for your first year in business.

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Update your information constantly

Initial research sets your initial expectations. Further research helps you maintain the reality of your outlook indefinitely. Changes in your competition, marketing technology, and online populations can all affect your expectations and projections. Most businesses fail because of unrealistic expectations. People often underestimate the cost of establishing a business, the market for their products or services, or the strength of the competition. Guerrillas survey every battlefield completely before committing themselves, and they never choose a fight they can't win.

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