1. Inadequate Naming Of The Online Business
One of the most critical facets of a business is the name of its website and is ranked first on this list. It is important that the site name should be easy to remember for a customer or user. Names of websites shouldn’t be misleading about what the company does. Online portals offer businesses’ names and prices, along with information on availability. In the event that you are seeking a good name, you might find that all the good ones are taken, but with a little brainstorming and help, your website can have a decent name quickly.
2. Failing to register an online business
If a company runs an online business as a sole proprietorship or partnership and earns less than INR 10,000,000 in revenue in a fiscal year, then that company’s founder or proprietor has the right to register the company. Registration in India has required if a company is a limited liability partnership, a one-person company, a private limited, or a public limited. I
3. The use of contracts
It is a legal document in which two or more parties are bound by an agreement or undertaking that they have previously signed and acknowledged. It is important for online businesses to establish written contracts for each relationship they enter. Regardless of who sells you security, food, or is a third-party vendor, a contract must protect the interests of both parties.
4. Failure to secure intellectual property rights
A company’s IP rights are generally included in its balance sheet as assets. These include processes in producing goods and services, logo designs, and company technology. For a company to commit the biggest sin is to fail to protect IPR, in case their website contains intellectual property. A founder or entrepreneur might as well make it mandatory if they want to protect their interests when starting a business online.
5. Lack of a privacy policy
By providing a privacy policy to a user or customer, a company will protect their privacy by informing them as to what type of information is collected, why such information is collected, which third parties will have access to this information, and how the data will be disclosed.
Companies that collect user data are formally required by law to disclose their privacy policies on their website. Users can view these policies before using a website.
6. Failure to receive a disclaimer when required
Generally, a disclaimer is a statement on a web page expressing a disclaimer of responsibility for the content provided therein. By including this statement, the website owner is protected. Disclaimers may be used to waive legal action, as well as to avoid injury or damage, monetary or otherwise. Websites must have a disclaimer that users can view before being used. Disclaimers are legally enforceable in India, and not including one could lead to your website being subject to severe legal penalties.
7. Failing to register a domain
The websites BigRock, Netlynx, and Godaddy offer domain registration services among other things. You can look at the list of domain names and choose the one you want by registering and paying for it. There can be no duplicate domain names, each must be unique. Domains can be registered for one year and for up to ten years. During its expiration, a domain can be repurchased or renewed. The same companies also provide domain hosting services, essential for storing and accessing web files online.
8. Complex, unfriendly design
Websites ought to be designed to engage customers rather than just obtain their attention. Designing a website involves two aspects, namely the user interface (UI), or the device a user uses to access the website, and the user experience (UX), or how the user feels as they utilize the site. A business that seems to be unique or has a brilliant product or service may still fail because of bad user experience, slow page loading, too many advertisement banners, or because it’s too boring. It is important for founders to have a qualified designer work on the website UI/UX designs. One can obtain templates at several sites to build a website from scratch upon paying for a service.
9. Ignoring marketing and social media
Advertising, promotions, and the power of social media have all become more popular online as businesses become more popular. Most businesses that ignore marketing have not been able to sustain over longer periods than those that embrace social media and online marketing. These factors do not have legal implications, but they determine whether an online company is successful or a failure. There are many tools that will help you increase traffic to your website, including Facebook Pay Per Click Ads, Google Adwords, and Social Media Optimization. In business, social media adds a lot of value–shareability, virality, and stickiness of the product or service.
10. Capital Inflow Excess Or Minimal
Businesses online and offline are not exempt from this rule. Capital is what makes a website work. As a business grows, capacity needs to be increased, servers need to be run, goods need to be purchased, services need to be rendered, and various compliance needs must be met. Bootstrapping or self-financing can be used when there is no immediate capital requirement, and revenue is used to finance the business. In a startup, private company or public corporation, a loan may be required in exchange for an equity stake, preference shares, or a nominal rate of interest. Website capital structure and requirements should be considered. A little too much, or a little too little, can cause damage, so be aware of what you should avoid. These are the company registration mistakes