There is no doubt that website investing mistakes can utterly destroy your investment portfolio. Making such mistakes can put you even further back from where you started in the first place.
Except the whole reasons to even invest in the first place is to make our lives easier right. After all you don’t want to make so many website investing mistakes to end up looking like this poor chap in the picture.
All jokes aside though, as humans we do make mistakes. It’s only natural, although there are things we can do to avoid making such mistakes.
What we can do to prevent ourselves from making these mistakes is to acknowledge what they are. How common they are and make a conscious effort to catch ourselves before we make them. In order to do this, first lets take a look at what these 4 common website investing mistakes are.
This used to be me. Straight out of the gate ready to tackle the biggest obstacles life had to throw at me. I quickly learnt though, that being over ambitious had me falling flat on my face each and every time.
I mean sure I learnt some great lessons, but the best of all was to never be so over ambitious that you set yourself up for failure. Instead to work your way up to your insanely ambitious goals one step at a time is the most successful route.
Being over ambitious, though I haven’t fallen into its trap when investing in websites. Certainly is one of those website investing mistakes to avoid at all costs, where going all in on your first hand usually leads to disaster. You don’t want to go out and buy an online business that you have no idea how to run, how the business works and especially how to maintain the business at its current earnings.
Just because you see the big dollar signs and the amazing ROI (return on investment) some websites are making. Does not mean you should dive in so deep only to start learning to swim when you are already sinking.
Play it cool, invest in something more suited to your knowledge at the time, ensuring it is a smaller investment to begin with. Learn as much as you can from that experience and then expand.
Some people like going big, which is fine. However, never go so big by investing in something that drains your whole bank account. This is one of those website investing mistakes some people make which has them in a flurry to sell after they realized what they have done.
Over spending on an investment does the opposite of what you are looking to achieve by investing in the first place. Which is essentially to make your life easier right.
Where as over spending only makes your life so much harder to a point you start wondering where your next pay check is coming from, how you are going to afford your bills, food and all those other essential costs of living.
Never buy something so big that you can’t afford anything else in your life. Keep some aside to be able to feed yourself and spend on little improvements on your new website investments that may be needed in the future.
Lack Of Vision
It all comes down to not just being knowledgeable enough to know what to do when investing in websites, but also executing on your website investing plan/guidelines.
You may find that a lot of first time investors don’t even have a well structured goal or plan they are working towards. They too have no vision for what type of business is best for them, but also where they would like to take that business in the future. Which is what most people call ‘your exist strategy’.
Don’t make one of the most common of all website investing mistakes by buying a website you don’t know what you want to do with. If you buy a website and it just sits there, its going to accumulate dust, it’s going to get moldy and pretty soon your investment will rot to the ground.
You need to have a vision, even if your vision is to sell the website in a few months and make some money from flipping it. You still need to water the thing to prevent it from going stale.
Deprived Due Diligence
Quite easily and by far the most common website investing mistakes are made due the lack of effort put into due diligence. Even the professionals suffer from this mistake because due diligence really is a tough one to have total certainty over, no matter which business you are investing in.
Due diligence is the final straw, the process you need to perform thoroughly enough to understand what flaws the business has. How much it makes, how much it spends and crucially how much the whole business is really worth to you, and not what it is worth to the seller.
Not putting your all into your due diligence can be a rude awakening once you take control of that website investment. Especially if it should have problems upon problems you couldn’t yet see because you were to naïve on your due diligence check.
I can’t stress this enough. You NEED to ensure you don’t make the most common website investing mistake of all, being lack of due diligence. Instead educate yourself as much as humanly possible on how to conduct an exceedingly rigorous due diligence check on all website investments you are going to make before you part with your cash.
I do admit, as humans sometimes it can be tough avoiding all mistakes including website investing mistakes. In essence though, making mistakes can be crushing to us, however if we look at it in the right light. They are crucial learning curves we all need to accept and take as much from that experience in order to not do the same again.