A lot of young people are starting companies.
But when you're young and inexperienced, you're more error prone.
Nick Tart spoke to many young founders while co-authoring a book, 50 Interviews: Young Entrepreneurs, What It Takes To Make More Than Your Parents.
He told us the most frequent business mistakes they made.
They listen too much to others
We grow up listening to authority figures; it's a habit that isn't easily broken.
Tart spoke about a young Indian entrepreneur he interviewed, King Sidharth. He was successful in business by age 18, but he was taught to listen to elders even if it meant ignoring gut feelings. Initially Tart says it inhibited Sidharth's business execution.
Even Tart recalls the pressure to conform to others' opinions. "When I was a junior or senior in high school, I had an idea: Mandles," he says. "They were candles that would have manly scents, like hot sauce and fire."
Even though he thought it was brilliant, he says his family and friends called the idea stupid. Tart let his idea go, only to read about someone else pursuing the same thing years later on CNN.
"That guy deserves all the credit, he actually executed. I should have trusted my instincts," says a regretful Tart.
They mismanage money
Tart interviewed Andrew Fashion, a teenager who made $2.5 million selling mechanical rocket launchers, and blew it all before his 22nd birthday.
"Fashion spent it all on whatever his little heart desired -- girlfriends, trips to Vegas, fancy cars and friends," says Tart. Now that he is older, the entrepreneur has learned to better manage his money.
'Now Fashion has an investment plan set up for the next time he becomes successful," Tart tells us. He's also writing a memoir titled "Young and Stupid."
Tart says another young entrepreneur he interviewed, Ben Weissenstein, made a similar mistake. He was never taught finance in school and struggled to keep track of his revenue and expenses. At age 19, Weissenstein lacked basic accounting skills because he never had an opportunity to learn them.
They have trouble focusing
"Most of the entrepreneurs I interviewed were really excited by the next shiny object," Tart told us.
Lauren Amarante, the 23-year-old co-founder of World Entrepreneurship Day, suffered from this. She scheduled the first gathering in April 2010 at the United Nations. CEOs from 35 countries attended. After the successful event, she was bombarded with invitations and email requests.
"It was difficult for her," says Tart. "She was being asked to attend all of these great events all over the world, but it was pulling her away from her own goals."
Once Amarante started turning down invitations, she saw her business take off again. "Usually, external interest is more distracting than helpful," says Tart.
See the rest of the story at Business Insider
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