Top 5 Online Business Problems and How to Handle Them

Hi, this is Attorney Elizabeth Potts Weinstein, and today we're discussing the top five online business problems and how to handle them.

1. Chargebacks and Money Disputes

Chargebacks are a common issue for online businesses. A chargeback occurs when a customer disputes a payment made by credit card or PayPal, resulting in the funds being held in escrow during the dispute resolution process. This can take up to a month and a half.

Preventive Measures:

• Maintain Sufficient Funds: Always have enough money in your business checking account to cover potential chargebacks.
• Use Written Contracts: Ensure you have a formal contract or terms and conditions that customers must agree to at the time of purchase. This documentation is crucial for disputing chargebacks successfully.

Handling Chargebacks:

• Provide Proof: When disputing a chargeback, present evidence of the delivered product or service along with the customer's agreement to the terms and conditions.

2. Intellectual Property Infringement

Intellectual property (IP) issues, such as trademark or copyright infringement, are frequent problems for online businesses. It's more common to be accused of infringement than to enforce your own IP rights.

Preventive Measures:

• Conduct Thorough Searches: Perform trademark searches using the trademark database and Google. Ensure no one else is using similar branding.
• Verify Content Rights: Do not rely on AI or outsourced content without verifying you have the right to use it. Always ensure you legally own or have licensed the content.

3. Bad Reviews

Negative reviews can appear on platforms like Yelp, Google, or even dedicated hate sites.

Handling Bad Reviews:

• Stay Calm: Address issues without taking them personally. Respond constructively to public reviews and delete inappropriate comments on your platforms.
• Set Clear Policies: Have policies for managing and responding to reviews. If a review violates your policy, remove it calmly and swiftly.

4. Taxes and Compliance

Online businesses must adhere to various tax and compliance requirements, including annual reports, business licenses, and tax filings.

Preventive Measures:

• Calendar Deadlines: Use a digital calendar to track all important deadlines and ensure timely compliance.
• Responsibility: Even if you hire an accountant, you are ultimately responsible for ensuring all filings and payments are made.

5. Disputes with Co-Founders

Disputes among co-founders can lead to significant business issues.

Preventive Measures:

• Create a Written Agreement: Have a detailed partnership or operating agreement outlining roles, responsibilities, and dispute resolution processes.
• Regular Meetings: Hold regular meetings to discuss business operations and resolve issues proactively.
• Dispute Resolution Steps: Include steps for handling disputes, such as negotiation, mediation, and arbitration, to resolve conflicts efficiently.

For more detailed advice or if you have specific questions, feel free to post them in the comments below. If you found this video helpful, give it a thumbs up, subscribe for more content, and join our Patreon or Discord community for further discussions.