⚡ Get All Content for 20% Off ⚡

4 Common Mistakes to Avoid in Business Most young entrepreneurs make the same mistakes, and usually with the same consequences.

By Timothy Sykes

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.

Peopleimages | Getty Images

One of my main ventures is in penny stock trading. But, I've been running various businesses for years. When I wrote an article on the >greatest stock mistake people can make, I realized you can apply those same rules to the world of business.

I see young entrepreneurs making these four mistakes all the time. But, what are those four mistakes you should avoid?

Related: How to Start a Business With (Almost) No Money

Getting cocky.

Have you ever heard the phrase, "Pride always comes before the fall"?

This is what getting cocky is. There are 27 million working-age Americans starting their own businesses according to the Global Entrepreneurship Monitor. Many of them dropped out or were laid off by Fortune 500 companies.

When people get cocky, they fail to look at the little things that make a business work. They get sloppy.

Take Jeffrey Hayzlett as an example. He always talked about how even as Chief Marketing Officer of Kodak he still cleaned the carpets himself. That's just one way to avoid becoming hypnotized by your own awesomeness.

Related: Need a Business Idea? Here are 55

Celebrating before victory

In business, it's easy to get carried away when things are moving so quickly. But, for me it's like celebrating an increase in your stocks before you've taken your money out of the market.

One example I read about recently was Chinese smartphone company Xiaomi. In 2015, it sold 72 million smartphones at its peak in China and celebrated. But, that celebrating didn't last long. It lost 20 percent of its global share of the smartphone market the next year because they had no contingency for expanding out of their home market of China.

Whenever you succeed, you should always be anticipating the challenges ahead. New ground always delivers new challenges. Look forward not back.

Related: 63 Businesses to Start for Under $10,000

Never quit

Most of the big names you know about today were not overnight success stories. It's vital that you never quit even if you feel like doing so.

Jeff Bezos, the founder of Amazon, is one example of this. Jeff actually never turned a profit with Amazon for nine years. Now imagine if he'd quit. He would never become one of the >richest people in the world. Just because your business isn't making money now doesn't mean it won't later.

Never quit.

Related: 12 Low-Cost Business Ideas for Introverts

Underestimating the length of the journey

This is the lesson I believe is the most important one. We've looked at so many examples of companies that weren't successful immediately. Take FedEx, Amazon, and Microsoft. All big companies that didn't become the behemoths they are within a few months.

ESPN is another example. They started in 1978. They endured a turbulent time until they were finally able to start turning a profit in the middle of the 1980s. Today they're one of the biggest sports channels in the world.

You must be in this for the long haul.

Related: How to Start a Business: a Step-by-Step Guide to Growing Your Big Idea Into a Successful Company

These are the four mistakes I believe most young entrepreneurs make. Know them, understand them, and get them out of your system so that you can be well on your way to the path to success as a business owner.

Timothy Sykes

Entrepreneur and Penny Stock Expert

Timothy Sykes is an entrepreneur and a penny stock expert, trader and advocate. He has been featured on CNN, Fox News, CNBC and more. Watch his media appearances and speeches on Youtube here.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

The Remote Side Hustle a 43-Year-Old Musician Works on for 1 Hour a Day Earns Nearly $3,000 a Month: 'All From the Comfort of Home'

Sam Ziegler wanted to supplement his income as a professional drummer — then his tech skills and desire to help people came together.

Marketing

Ever Wonder Why Certain Websites Rank Higher Than Yours? This SEO Expert Reveals The Secret to Dominating Search Results

It's often the smart use of SEO, now supercharged with AI, particularly in keyword optimization.

Franchise

The Top Franchise Brands Growing Globally

While our main Fastest-Growing Franchises list focuses on North American growth, more and more brands are looking to grow worldwide. These are the 25 that had the greatest franchise growth outside the U.S. and Canada from July 2022 to July 2023.

Business News

AI Is Impacting Jobs. Here Are the Gigs Affected the Most, According to an Analysis of 5 Million Upwork Postings

The researcher said in the report that freelance jobs were analyzed first because that market will likely see AI's immediate impact.

Leadership

Former Interrogator Shares 5 Behaviors Liars Exhibit and How to Handle Them

Five deceptive behaviors to look for and how to respond to those behaviors when you encounter them.