In today’s digital age, launching an online business has never been easier. With just a website, an entrepreneur can offer services without meeting clients face-to-face, sometimes growing their business into a company that provides employment to others. However, while the internet offers limitless opportunities, many online startups fail due to common mistakes that could have been avoided.
Uwizeyimana Vivens, a young entrepreneur, founded Umurava, a platform that connects tech professionals in Rwanda and across Africa with companies looking for their expertise. After three and a half years in operation, Umurava now employs 15 full-time staff. Drawing from his experience, he shares key lessons that every online business founder should keep in mind.
- Make sure there’s a market for your service
The first mistake many founders make is launching a business without confirming whether there’s demand for their service.
“A person may have great tech skills and want to build a business around them. But the first step is to ask: do people actually need this service? Are there enough potential customers?” Uwizeyimana explains.
“If there’s a real demand, everything else becomes easier. Investors, partners, and sponsors will be more willing to support your business. The key is to start—but only after confirming that people are willing to pay for what you’re offering.”
- Avoid solutions that require heavy user education
Another common challenge is introducing a product that people struggle to adopt without extensive training.
“In Africa, many people are still adapting to digital solutions. You might create a great tech-based service that solves an actual problem, but if it requires users to go through a steep learning curve, you may struggle to get traction,” Uwizeyimana warns.
“Some entrepreneurs launch a product and then realize they need to spend time and money educating people on how to use it. If they don’t have the resources for that, they give up, saying, ‘The market isn’t ready.’ But the real issue is that they picked the wrong approach.”
To avoid this, he advises entrepreneurs to build solutions that are easy for users to adopt without additional investment.
- Focus on immediate revenue streams
A major reason many startups fail is that they take too long to generate revenue.
“You need a business where customers pay for your service from the start. That’s what gives you the financial power to keep going,” he says.
“If you launch a platform but people don’t immediately see its value—or they like it but aren’t willing to pay for it—you might need to rethink your approach. Sometimes, it’s better to pivot and offer a different service that people will pay for right away.”
- Plan for web hosting costs
Many entrepreneurs underestimate the cost of running a website, particularly as their user base grows.
“The more people use your platform, the higher your hosting costs,” Uwizeyimana explains. “If you don’t have paying customers yet, you might struggle to cover those costs, which can quickly become a major obstacle.”
“If you’re launching a software-based business, one of the key team members you need is someone who understands hosting. Some services charge Rwf 500,000 per month, but if you work with an expert, you might find options as low as Rwf 60,000.”
- Secure the right funding—without relying on banks
Many startups fail due to lack of funding, even when they have a promising idea.
“In Rwanda, securing capital can be difficult. Most small entrepreneurs have no choice but to rely on bank loans, which can be expensive,” Uwizeyimana explains.
“But in some countries, there are organizations that invest in tech startups by providing funding in exchange for a small equity stake.”
For Rwandan entrepreneurs, he advises researching funding programs that support African startups.
“If you apply and compete successfully, you could secure up to Rwf 50 million from investors who believe in your idea. That kind of funding can help take your business to the next level.”
Launching an online business is exciting, but success requires careful planning. By ensuring there’s demand for your service, keeping solutions user-friendly, focusing on immediate revenue, managing hosting costs, and securing the right funding, entrepreneurs can avoid common pitfalls and build sustainable businesses.