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What is the Life of an Internet Business Startup?

On an average how long does a internet-based startup last? What is the life of these internet business startups that mushroom daily on the internet? CFO discusses the question in this post.

Most internet startups can last just for a few months before they run into losses, some may hang on till a couple of years and some may go out of business within a decade of their run. This means thats statistically  only one in hundred startups or so may be a succesful one. Maybe lesser.

A startup can be unsuccesful of many reasons. But the most critcal reason for their failure is the lack of a solid business plan. A business plan can be defined as a strategy on how the startup will chart its course for its growth with time. A solid business plan also takes into consideration the slumps and problems that could arise in the way. But many startups begin with a mediocre plan or no plan at all. They invest huge sums of money mindlessly. Sometimes, although an idea is good and sell-able, poor investing habits or poor management brings about the downfall.

Another reason why many internet business startup fail is that the person who started it just does not have the persistence and enough commitment to make the startup work. No startup is easy to grow and the path is very tough to tread. You need enough belief in yourself and the project, knowing that it will definitely work. If the belief is amiss then almost certainly the startup will flop.

Startups generally require to be innovative and should stand out from the rest of the existing enterprise model. For example the latest startups in the internet are the PTC (paid-to-click) websites. It was a great idea because it allowed its users to earn money with zero investment. On the other hand it allowed advertisers to display their website very cheap. This was an awesome idea but that was until the internet got saturated with thousands of PTCs. The result is that, now we have more scam PTCs websites than authentic ones! More and more PTCs that open up now are shutting down before they have even started.

Internet Startups need to be different and introduce a new concept to the existing market. The fast pace of internet requires you to keep developing and adding innovation to your business in order to survive.

About Vivek Krishnan

I am the Founder-editor of I started this blog in 2009, while in college with a lousy internet connection. Today this blog receives over 30,000 page views per month. As a person, I am a wanderer, dreamer and part-time pessimist.

One comment

  1. Internet Business will grow in the years to come as more and more people get online. I also invested in an online store.~*`

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