6 Big Mistakes That Can Ruin Your Online Business – No. 4 Is the Worst

Starting an online business is not a sprint, but a marathon. However, many founders make mistakes when setting up an online business that not only cost time, but also money. These mistakes are often based on a lack of structure and planning. But this is exactly where the Business Operations System (BOS) comes into play, which lays the foundation for sustainable growth in your online business. In this article, I will show you the six biggest mistakes you must avoid in order to put your online business on the road to success – and mistake 4 could really cost you dearly.

What is the Business Operations System (BOS) for online businesses?

The Business Operations System (BOS) is a proven framework that successful companies use to grow profitably. It is based on six key systems that form the foundation of any successful online business:

1. Leadership
2. Offer (supply/value creation)
3. Marketing
4. Sale
5. Fulfillment
6. Finances

If the right business strategy or implementation is missing in one of these areas, the entire online business will falter. Let’s look at the six most common mistakes that new, beginner entrepreneurs and founders make in these areas – and how you can avoid them.

Mistake 1: Weak leadership

A strong management system is the foundation for every successful business and a successful online business. Unfortunately, this aspect is often underestimated by new entrepreneurs. Many founders are caught up in the day-to-day operations, they work hard and a lot, but without clear goals or strategic direction. This not only leads to stress and overwork, but also to stagnating growth.

At its core, the leadership system is about creating clear structures and processes that align the online business for long-term success. Weak leadership is often reflected in a lack of energy, confusion about priorities and a lack of productivity – exactly the factors that can be observed in many start-ups and small businesses.

The consequences of weak leadership

If you do not actively shape your leadership, the following will happen:

• Overwork and burnout : You work a lot, but without focus. Instead of tackling important strategic tasks, you lose yourself in the minutiae. Overtime and stress are the result.
• No clear decisions : Without a clear vision and priorities, you waste time and energy on tasks that have no direct impact on your company’s growth. Decisions are made based on gut feeling, which often leads to failure.
• Lack of growth strategy : A weak leadership system leads to you “working in” your business instead of on your business. You lose sight of long-term goals and potential growth opportunities.

The Business Operations System (BOS) in the video provides a clear example : The entrepreneur Ruben suffers from the classic symptoms of weak leadership. He is constantly working, is stressed and has no clarity about his next steps. This lack of structure has a negative impact on all other business areas. Without the necessary energy and clear planning, he is unable to make strategic decisions, which could ultimately lead to the failure of his agency.

How do you avoid this mistake?

1. Set clear goals and priorities : Focus on what really matters. Define measurable goals and prioritize tasks that will move your company forward. Avoid getting lost in day-to-day business.
2. Delegate tasks : Consider which tasks you can delegate to free up your time for important strategic decisions. Even if you have a small team, it is essential to delegate responsibility early on.
3. Invest in your personal development : Success starts with you. Work on your leadership skills, learn how to become more productive and strategic. Tools such as journaling, regular reflection and further training will help you grow as a leader. There are also various training courses for people who are self-employed so that you have a precise roadmap for this task.
4. Create a positive work environment : Your own energy level and mental state have a significant impact on how productively you work. Make sure you take regular breaks, eat healthily and get enough sleep. This is the only way to achieve top performance in the long term.

With a strong management system, you lay the foundation for sustainable growth. It is the key to maintaining control over your company and not getting caught up in the maelstrom of operational tasks.

Mistake 2: No clear offer (value creation system)

The value creation system , or the offer system , is a central element that significantly influences the success of your online business. It describes the added value you offer your customers and how you stand out from the competition. A variety of online business ideas can help you develop a clear and unique offer. One of the most common mistakes many entrepreneurs make with their business idea is that they do not have a clear and unique offer. Instead, they offer services or products that are interchangeable and do not represent any real benefit for their target group.

Why a vague offer is problematic for online business ideas

If your offer is unclear or not differentiated, you will have difficulty convincing potential customers. Especially in online business, where competition is fierce, it is not enough to just be “good” – you have to offer something unique. Many entrepreneurs overlook this and develop offers that do not stand out enough from the crowd. This leads to their customers having no motivation to buy from them because they do not see any real added value.

Imagine you offer web design , like many other companies. If you don’t make your offer specific enough or don’t clearly define your target audience, your service will be perceived as “one of many.” This was the case with a typical founder who offered web design without positioning himself with a clear promise or differentiated service. His message was basically: “I create websites.” But hundreds of other providers say the same thing. He lacked the clear differentiation and the special offer that would have convinced the customer to buy from him.

What a strong online business offer should look like

A successful value creation system has clear characteristics. It is not just about what you offer , but above all what special benefits you create for your target group. Your offer must communicate clearly:

• Who you are and what expertise you bring.
• What specific problem you solve for your customers.
• Why your offer is better or different than that of the competition.

You need to know what makes your offer special and how it helps your customers. Successful entrepreneurs identify a clearly defined problem that they solve for their target group and offer a tailor-made solution. If you are not able to create real added value for your customers, your business will have difficulty succeeding in the long term.

A good example of a successful value creation system is a video production company that specializes in explanatory videos for trade fairs . This company offers a solution that generates 30% more attention for trade fair stands and explains the added value of a product to potential customers in just a few seconds. This is a clearly defined benefit that the competition does not offer in this form. This uniqueness makes the offer valuable and successful.

The right step-by-step strategy for your offer to start a successful online business

To develop a strong value creation system, you need to delve deeply into your customers’ needs. It’s not enough to simply have a “good” product – it has to be a product that your target group really needs. To do this, you should:

1. Know your target audience well : Understand their needs, desires and problems.
2. Develop a unique offer : Clearly define how you solve your customers’ problem and what benefit they will get from your offer.
3. Communicate clearly and directly : Make sure your customers immediately understand the added value you offer and why they should buy from you.
4. Test your offer: Ask friends and family what they think of your offer. Social media platforms are also good ways to get in touch with your target group and validate your business idea.

Mistake 3: Missing or ineffective marketing strategy (marketing system)

The marketing system is a crucial part of your online business, because without strong online marketing, your offer will remain invisible. A common mistake that many newcomers to online business make is the lack of a clear and targeted marketing strategy. They hope that their products or services will be discovered “on their own” or rely on random marketing measures without pursuing a concrete strategy.

Why an unsystematic marketing strategy is problematic

Without an effective marketing strategy, it is almost impossible to reach potential customers. Many entrepreneurs think that it is enough to simply have a website or publish a few posts on  social media , but this is far from a sustainable strategy. Successful marketing requires a targeted approach to your target group, the consistent use of the appropriate channels and, above all, clear goals that you want to achieve with your marketing.

An entrepreneur who doesn’t have clear goals or defined marketing channels will quickly get lost in a whirlwind of uncoordinated activities. You might post on Facebook, launch a paid campaign on Instagram, or try your hand at email marketing, but without a consistent strategy, it will be difficult to combine these efforts effectively and generate measurable success.

The key to successful marketing: consistency and targeting

Effective marketing starts with clearly defining your target audience and understanding what problems or needs they have. You need to know exactly who you are targeting and what marketing channels they prefer. Without this knowledge, you will either spend a lot of money on marketing that doesn’t work, or you will reach people but not the right ones.

Example: Rita, the owner of a video production company, is a model of what an effective marketing strategy can look like. She has clearly specialized in B2B trade show exhibitors and offers them customized video solutions. Her marketing focus is on LinkedIn ads because that is where her target audience – CEOs and marketing managers – spend most of their time. Every day, this targeted marketing strategy brings her around 50 to 100 new visitors to her landing page, which leads to consistent sales opportunities. This focus on the right channel for her target audience enables her to attract the right attention and continuously increase her sales.

Developing the right marketing strategy for your business

Your marketing should always aim to create sales opportunities , i.e. to reach potential customers who are interested in what you have to offer. To do this, it is necessary to take the following steps:

1. Define your target audience : Who are your ideal customers? What are they interested in? Where can you find them online?
2. Choose the right marketing channels (online presence) : Whether it’s paid advertising on social media such as Facebook or Instagram, organic content marketing on YouTube or LinkedIn – focus on the social media channels where your target group is active. A social media manager is a valuable ally
3. Create an irresistible message : Your marketing must clearly address the needs and problems of your target audience. It’s not enough to simply present your product – you have to show why what you offer is the best solution.
4. Test and optimize : Marketing is a process of learning and adapting. Test different approaches, analyze the results and continuously optimize your strategy.
5. Strategic partnerships: Try to find partners such as affiliate partners or B2B networks such as BNI who can recommend you to potential customers.

How to measure the success of your marketing

An important element of a successful marketing system is measurability . You should be able to understand exactly which measures are successful and which are not. This means that you have to set clear KPIs (Key Performance Indicators), such as the number of clicks on an ad, the conversion rate of your landing page or the cost per customer acquisition. Through this analysis, you can see which marketing measures actually lead to sales and which should be optimized or even stopped.

Mistake 4: Weak distribution system (sales system)

Starting an online business requires an effective sales system – it is the point at which prospects become paying customers. If the sales system is not working optimally, you will find that even a strong marketing strategy will fall flat. Many online business owners underestimate the importance of a structured and targeted sales system. Instead of a strategic approach, they rely on spontaneous sales conversations or hope that potential customers will close the deal on their own.

Why a weak sales system is problematic

A common mistake is not paying enough attention to the sales process. Many rely on their intuition or improvised conversations and are surprised when sales stagnate or successes are sporadic. There is a lack of structure and a clear process that guides the prospective buyer through the individual phases of the sale – from the first contact to the final transaction.

Without a clearly defined sales system in your online business, you lose control over how and when prospects become customers. Another common problem is the lack of follow-up on leads. Potential customers are approached, but the closing process is not systematically followed. This means that many opportunities simply fizzle out before they result in concrete sales.

A structured sales system creates trust and ensures consistency

A functioning sales system not only ensures predictable revenue, but also a higher closing rate. This means that you have a set structure that guides the entire process: from the initial contact to the presentation of your offer to the handling of objections and the closing. Customers expect to be guided through the sales process, and a solid system creates the trust needed to ultimately make the purchase.

Example: Rita, the entrepreneur from the previous example, has optimized her sales system to work with a proven sales guide. This guide helps her guide prospects through the different stages of the buying process in structured conversations. She handles objections in a targeted manner, uses successful storytelling, and focuses on communicating the added value of her offer clearly and understandably. This process has helped her achieve a high closing rate and convert prospects into paying customers.

Important elements of a successful sales system

A strong sales system consists of several important components:

1. Pre-qualification of leads : It is important to ensure in advance that you only spend your time with qualified prospects. Not everyone who finds your offer interesting is ready or able to buy. Your marketing system should therefore be geared towards generating qualified leads who have genuine interest and the necessary purchasing power.
2. A proven sales playbook : Having a clear playbook to guide you through the sales conversation is crucial. This playbook will help you structure the conversation, clearly communicate the benefits of your offer, and address objections in a targeted manner.
3. Effective objection handling : Potential customers often have concerns or questions before making a purchase  Your sales system must be prepared to handle these objections in a convincing and effective way to remove the uncertainty of the prospect.
4. Closing the sale : Closing a sale is often the point where many business owners get nervous. But a strong sales system ensures that the close is not a “chance story” but the natural end of a well-conducted conversation. There are clear methods and techniques that subtly but decisively guide the customer to the close.

How an Ineffective Sales System Costs You Money

An inefficient sales process not only leads to less revenue, but also missed opportunities. If potential customers are not guided through the process in a structured manner, they can easily drop out or choose the competition. This not only costs you the current sale, but potentially future business as the customer is now with a competitor.

Let’s say you’re investing a lot of money in marketing campaigns and generating a lot of leads, but you’re not managing to convert them into sales efficiently. This means you’re spending a lot of money on marketing but not generating the corresponding revenue. So your sales system needs to be designed to effectively convert these leads into paying customers – otherwise it will be difficult to build your online business.

Mistake 5: Inefficient fulfillment system

The fulfillment system, or the fulfillment of your services or products in an online store, is a crucial factor in customer satisfaction. In the world of online business, fulfillment includes all steps from order acceptance to delivery of the products to the customer. In the service industry, it concerns the delivery of the promised service, such as consulting or creative work. A weak or inefficient fulfillment system can ruin your reputation and lead to negative customer reviews that are difficult to correct.

Why a weak fulfillment system is problematic

Imagine you run an online store and have received a lot of orders. Your product may be great, but if delivery takes too long, you regularly make mistakes when processing orders, or communication with customers is slow, they will become dissatisfied. In the worst case scenario, you can not only lose existing customers, but also potential new customers who become aware of you due to negative reviews. This often leads to a “downward spiral” in which your customers’ expectations are not met and your company’s reputation suffers more and more.

A weak fulfillment system also has direct financial consequences. If you take too long to provide services or deliver products, you tie up resources while losing access to new business opportunities. The inefficiency can lead to higher costs, whether from late deliveries or inaccurate inventory management, which impact your company’s cash flow.

How a strong fulfillment system supports your business

An efficient fulfillment system not only ensures satisfied customers, but also a smooth and scalable business process. It’s about making the entire process – from order acceptance to execution to tracking – as seamless and efficient as possible. For example, well-thought-out and automated order processing ensures that all steps run smoothly and quickly, giving the customer a positive shopping experience.

Rita, the entrepreneur from the previous example, has optimized her fulfillment system so that she can deliver her explainer videos within 10 days of receiving the order. Thanks to a clear workflow and standardization, she delivers a high-quality product every time that exceeds her customers’ expectations. Her customers’ satisfaction results in repeat business and referrals, which ensures the long-term success of her business.

Important elements of an efficient fulfillment system

1. Clear workflows and processes : Automated procedures and structured processes help avoid delays and errors. A well-organized fulfillment system ensures that every step of the delivery process – from ordering to delivery – runs smoothly.
2. Customer communication : Inform your customers regularly about the status of their orders or services. Transparent communication prevents frustration and strengthens trust in your company.
3. Inventory management : A good fulfillment system manages your inventory efficiently and ensures that you always know what products are available. This prevents overselling and delays in delivery.
4. Fast and reliable delivery : Whether you sell physical products or provide services, your customers expect you to keep your promise. On-time delivery is one of the most important factors for satisfied customers.

Financial impact of a poor fulfillment system

An inefficient fulfillment system in your online business can not only cost you sales, but also lead to unnecessary expenses. For example, incorrect orders, returns and poorly organized warehousing can significantly increase operating costs. In addition, dissatisfied customers are more expensive because they cause additional customer service costs and endanger your reputation.

It is crucial to regularly check your fulfillment system and ensure that it is running smoothly. Automation and outsourcing of certain tasks can often help improve efficiency and cost control.

Mistake 6: Inadequate financial system

Your company’s financial system is the backbone of all business decisions. An inefficient or weak financial system in online business leads to uncontrolled spending, lack of reserves and ultimately a lack of financial stability. Many entrepreneurs focus heavily on marketing and sales, but without clear financial planning and control, you risk not being able to run your company sustainably.

Why a weak financial system is problematic

Many business owners neglect the financial system or view it as a “chore” that must be done at the end of the month or year. This often leads to them not being on top of their finances and making important financial decisions uninformed. A weak financial system means you don’t have a clear overview of your income, expenses and cash flow. It becomes difficult to plan investments, build reserves or even know if your business is profitable.

Another big problem is poor cash flow forecasting . Without clear financial reports and forecasts, you don’t know how much money you’ll have available to make important decisions in the coming months. This can lead to you getting into debt or unexpectedly getting into financial trouble.

The importance of a strong financial system to make your own online business successful:

A well-organized and strong financial system gives you control over your business. It helps you make informed decisions, plan investments and ensure that you are liquid at all times. With a clear overview of your income, expenses and profits, you can work strategically and run your business profitably and sustainably.

Example : A strong financial system, such as the one implemented by Rita, allows her to set aside clear reserves every month and manage her cash flow precisely. This not only gives her financial security, but also the opportunity to make strategic investments to further expand her business. She knows her profit margins exactly, knows what costs she has for marketing or personnel, and can therefore invest specifically in growth.

Important elements of an efficient financial system

1. Regular accounting : A successful financial system starts with clear and regular accounting. All income and expenses must be accurately recorded and analyzed.
2. Cash flow management : A clear understanding of your cash flow is essential to know how much money you have available at any given time. This will help you avoid bottlenecks and make planned investments on time.
3. Profit and loss statement : A precise profit and loss statement shows you exactly how profitable your company is. This is the only way you can make informed decisions and identify unprofitable areas early on.
4. Budget planning : Create regular budgets for your business. This will help you control your expenses and ensure that you always have enough reserves.
5. Tax optimization : A strong financial system also ensures that you stay on top of your tax obligations and recognize opportunities for tax optimization. This not only saves money but also protects you from unexpected tax demands.

How an inefficient financial system endangers your business

A weak financial system can get your company into trouble faster than you think. Without clear financial control, you run the risk of living beyond your means, operating unprofitably, or missing important payment deadlines. This not only leads to stress, but in the worst case scenario, even bankruptcy.

One of the biggest dangers for entrepreneurs is ignorance about the financial health of the business . You can’t expect to run your business successfully if you don’t know exactly how profitable it is and what financial challenges you’ll face.

Building an online business: Other points that are often forgotten

Starting an online business: The lack of preparation

A frequently overlooked but crucial mistake when starting an online business is inadequate preparation. Many entrepreneurs rush into their business idea without making the necessary preparations, which often leads to costly mistakes. Thorough preparation is the key to laying a solid foundation for your online business and ensuring long-term success.

Find different online business ideas

Choosing the right business idea is the first and perhaps most important step in building your own online business. Many entrepreneurs fail because they pursue an idea that either has no market or doesn’t fit their skills and interests. It’s crucial to find a business idea that has both a demand in the market and matches your personal strengths and passions.

A good approach is to make a list of your skills, interests and experience and match them with current market trends and needs. Tools like Google Trends, keyword research and competitive analysis can help you identify potential business ideas that are both profitable and fulfilling. Remember, a good business idea must not only be innovative but also feasible.

business plan and market analysis

A solid business plan is the backbone of any successful business. It helps you define your goals, plan your strategy and identify potential challenges. A business plan should include a detailed market analysis, a competitive analysis, a marketing strategy, financial planning and a clear vision for your business.

Market analysis is particularly important to understand who your target audience is, what needs and problems they have, and how you can best solve them. A thorough competitive analysis will help you identify the strengths and weaknesses of your competitors and develop a strategy to stand out from them. A well-thought-out business plan not only gives you clarity and direction, but is also an important tool for convincing potential investors or partners.

Know your target group

Knowing your target audience is crucial to the success of your online business. Many entrepreneurs make the mistake of developing a product or service without knowing exactly who their potential customers are. A clear definition of your target audience will help you to target your marketing and sales strategies and use your resources efficiently.

To define your target audience, you should consider demographic data (age, gender, income, education level), psychographic characteristics (interests, values, lifestyle) and behavioral patterns (buying behavior, online activities). Tools such as surveys, interviews and data analysis can give you valuable insights into the needs and desires of your target audience. The better you know your target audience, the more effectively you can tailor your offer and marketing strategies to them.

Conclusion: Your path to success with the Business Operations System (step-by-step guide)

The Business Operations System (BOS) is the foundation for building a successful online business. In this article, we’ve highlighted the six most common mistakes many entrepreneurs make when starting their online business. Each of these mistakes is directly related to one of the six key systems defined by BOS: leadership, supply, marketing, sales, fulfillment, and finance.

A weak leadership system leads to burnout and a lack of strategic direction. A poorly defined offer prevents you from standing out from the competition. Without an effective marketing strategy, your business remains invisible, and an inefficient sales system causes you to lose valuable customers. Weaknesses in fulfillment lead to dissatisfied customers and can permanently damage your reputation. Finally, an unstructured financial system puts your entire business at risk.

All of these systems must work together optimally to position your company for sustainable growth. Each of these mistakes is avoidable if you take the right steps to optimize. You should have control over each of these systems so that your business not only runs, but thrives. The Internet plays a key role in this, as all business processes and services in an online business are handled over the Internet.