Entrepreneurs are known for their get-up-and-go attitude. Sometimes, this approach to life can work in their favor (and let’s be honest, it usually does). But when it comes to setting up an online business, being cavalier isn’t a good idea.

Picture this: You’re finally ready to launch your online business – the culmination of countless late-night planning sessions and bold dreams. But here’s a sobering statistic: 90% of online businesses fail within their first four months. Why? Not because their ideas weren’t brilliant, but because they stumbled into avoidable pitfalls. While entrepreneurial instinct might tell you to dive in headfirst, building a successful online business requires something more: strategic wisdom.

Fortunately, this post can help. Let’s explore the hidden traps that could derail your new venture – and more importantly, how to sidestep them.

Entrepreneurial Pitfalls: 5 Things You Should Avoid When Setting Up An Online Business

Burning Out

The number one risk is burning out. Trying to do everything yourself will inevitably leave you feeling exhausted and begging for a break.

Entrepreneurs often overwork themselves when they are new (thinking it is the best way to get results). But, often, it ultimately winds up undermining their efforts and preventing them from achieving their potential.

Usually, you can tell if you’re burned out if you’re not excited about your business anymore, feel too exhausted to work, or are becoming more cynical. Taking regular breaks from your business can help avoid this. Do not sit tied to your laptop (and phone) all day and night. Remember, you deserve to have a personal life away from the business!

Relying Solely On Yourself

Another pitfall you often encounter is the trend for business leaders to rely solely on themselves, instead of viewing what they do as a corporate enterprise. Because of this, they often end up spinning plates all over the place instead of relying on people who can do those jobs effectively.

To fix this problem, outsource your most time-consuming tasks. Use fulfillment services to take care of warehousing and deliveries, freeing you up for other operations. Also, use marketing services to reach out to people online instead of relying on in-house teams or your personal expertise. If you feel like you’re bogged down in daily minutia, consider hiring a VA to help with admin tasks. There are people waiting to be hire to help you grow your business.

Do not sit tied to your laptop (and phone) all day and night. Remember, you deserve to have a personal life away from the business! Click To Tweet

Mismanaging Social Media And Advertising

Mismanaging social media is another mistake entrepreneurs make when setting up their online businesses. Getting this part of the process wrong often leads to spreading yourself too thin across platforms or creating ads that waste time and money.

Intuition may convince you that you should maintain an active presence on all social media platforms. This couldn’t be further from the truth!

The trick here is to focus on where your audience engages with you the most and then repurpose content for other platforms. This approach reduces the risk of burnout of having to complete too many tasks every day. And of course if social media management is one of those things that you need to either learn or delegate, *ahem* gimme a shout… it’s what I do!

And whatever you do, do not throw money down the social ads rabbit hole without understanding how ads work. Whether it’s taking a course to learn how ads work, or hiring an Ads Manager, this is an area where specialized expertise can save you a great deal of time and money from the onset.

When setting up your online business, do not throw money down the social ads rabbit hole without first understanding how ads work. Click To Tweet

Poor Branding

Poor branding is another issue many entrepreneurs face when setting up an online business. Getting the balance wrong can be absolutely detrimental to making waves and progressing.

Poor branding and improper messaging can even cause confusion. Some shoppers won’t use you if they don’t feel like they can trust you.

Fortunately, you can correct this by creating brand documents that help you become more consistent over time. If you can present the same image across various platforms, you are far more likely to succeed and win people over.

Skipping Performance Analysis

Finally, you might get into trouble by skipping performance analyses or ignoring metrics. Failing to adopt a proper data-driven approach can stop you from achieving the results you want.

One of the most costly mistakes online entrepreneurs make is flying blind – running their business on gut instinct rather than concrete data. While entrepreneurial intuition is valuable, ignoring performance metrics is like trying to navigate a ship without instruments. You might be heading straight for an iceberg without even knowing it.

The key to data-driven success isn’t just collecting numbers – it’s tracking the right metrics that actually matter to your business, then taking action on these insights.

For e-commerce, this means monitoring conversion rates, cart abandonment figures, and customer lifetime value. For content-based businesses, focus on engagement metrics like time on page, bounce rates, and social sharing patterns. Email marketing demands attention to open rates, click-through rates, and unsubscribe trends.

Therefore, always track key metrics that matter to your business with appropriate software. Be sure to regularly evaluate these metrics and tweak your efforts to ensure all of your operations are optimized.

One of the most costly mistakes online entrepreneurs make is flying blind – running their business on gut instinct rather than concrete data. Click To Tweet

Final Thoughts

Building an online business isn’t just about entrepreneurial spirit – it’s about entrepreneurial wisdom. The difference between thriving and merely surviving often comes down to recognizing these common pitfalls before they become problems.

By managing your energy wisely, building a strong support network, focusing your social media efforts, maintaining consistent branding, and letting data guide your decisions, you’re not just avoiding mistakes – you’re laying the groundwork for sustainable success. Remember: the most successful online entrepreneurs aren’t the ones who work the hardest, but the ones who work the smartest.

Your entrepreneurial instincts got you this far; now let strategic thinking take you the rest of the way.

Ciao,
Miss Kemya