Although online businesses have been around for over 20 years since the boom of Silicon Valley in the early 2000s and the knowledge of building one has been broadly available, those who dare to start seem to make the same mistakes as their predecessors.

If you are one of the daredevils, instead of making your own mistakes, learn from the mistakes of others and discover a quicker path to success.

So here are the most common 7 deadly mistakes I see people make in their online businesses and how to avoid them.

1

Not specifying a niche or selecting a niche that is way too broad.

This often means missing the real point of running a business, which is recognizing the true needs, pains, and desires of your potential customers. Your niche should be neither too broad nor too narrow. Being convinced that your business is for everyone and that everyone will buy your product is a nail in your coffin. Even bread is not for everyone so be very careful with this part of defining your business strategy as it can make or break your business. Imagine you are brand new to the online business world, have no brand yet, and are trying to open an e-commerce store selling “everything” from electronics to clothing, home decor, and fishing equipment. When defining a niche be specific.

Example: Take Gymshark—when it started, it didn’t try to sell generic athletic wear to everyone. Instead, it focused on gym-goers and fitness enthusiasts who wanted stylish, performance-based gear. By narrowing its focus, Gymshark built a strong brand that later expanded successfully.

2

Contextualize Your Ideal Customer Avatar

Remember that creating an Ideal Customer Avatar must be put into context. It doesn’t fit a model. Trying to fit into one is one of the biggest deadly sins in business. Business owners try to follow some sort of outdated demographic models like gender, age, and location when what they should focus on are the real needs and desires of their potential customers. Think about your customer’s deeper motivations. What do they genuinely need? How does your product solve their pain points or desires? By putting your ICA into context and focusing on psychographics (values, behaviors, and goals), you’ll develop a much more realistic and actionable customer profile.

Example: When Airbnb first launched, its founders didn’t just target "travelers." Instead, they focused on budget-conscious, experience-seeking travelers who wanted to stay in unique places rather than generic hotels. By understanding their audience’s true needs, they revolutionized the travel industry.

3

Building in Secret vs Testing an MVP

Keeping your business idea in hiding while perfecting every detail is a surefire way to waste time and resources. Instead, embrace the Minimum Viable Product (MVP) approach. Launch a simple version of your product and gather real feedback. Iterating based on actual customer input not only saves money but also ensures your product aligns with market needs. Remember, success comes from interaction, not isolation.

Example: Dropbox started as a simple explainer video showcasing how the product would work. Without building the full product, the video alone generated thousands of sign-ups, proving market demand before any heavy development took place. This allowed them to build exactly what customers wanted.

4

Your Business Isn’t About You—It’s About Your Customer

A common rookie error is focusing solely on what you want rather than what your customer needs. Your preferences, tastes, and assumptions are secondary. The key to success lies in understanding and delivering what your target audience values. Shift from a “me-centered” mindset to a customer-centric approach, and you’ll build stronger connections and trust with your audience as well as increase in sales.

Example: Kodak was once a leader in photography but failed to focus on what customers actually wanted—digital photography. Instead of adapting to new consumer preferences, it stuck to film-based products and lost its market dominance to companies like Canon and Sony, which prioritized customer needs over tradition.

5

Perfectionism vs Gradual Progress

Perfectionism can paralyze progress. Instead of aiming for a flawless launch, focus on gradual improvements over time. Building a business is an iterative process—start with what you have, refine as you go, and learn from every step. Your audience values progress and authenticity over unattainable perfection. Done is better than perfect.

Example: Instagram was originally launched as "Burbn," a check-in app with multiple features. Instead of perfecting every feature, the founders noticed users only loved one thing—photo sharing. They scrapped everything else and focused entirely on improving that, leading to Instagram’s massive success.

6

Not Starting: The Snowball Effect

Fear of failure or waiting for the “perfect moment” often stops people from starting their business. The truth is, momentum builds with action. Taking the first step, no matter how small, sets off a snowball effect. Each effort compounds over time, creating opportunities and progress. Start now—your future self will thank you.

Example: Sara Blakely, founder of Spanx, started with just $5,000 in savings and an idea. She didn’t wait for investors, perfection, or validation—she simply took action, made her first prototype, and pitched it herself. Today, Spanx is a billion-dollar company.

7

Starting with a Logo Before Knowing Your Purpose

Jumping straight into designing a logo or website without clarifying your business purpose is putting the cart before the horse. A logo is just a visual representation—it won’t define your success. First, focus on understanding your niche, your audience, and what they’ll actually pay for. Once your foundation is solid, branding will naturally reflect the value you provide.

Example: Twitter’s original version was called "Odeo," a podcast platform that failed. Instead of wasting time branding it further, the founders pivoted, focused on microblogging, and later rebranded as Twitter—a platform millions now use daily. Branding followed function, not the other way around.