Entrepreneurs are always telling other entrepreneurs to just go for it. Drop out of school, start a company. Quit that job, do something you’re passionate about. We are the misfits. I’m totally for the gun-ho attitude, but I think it’s almost important to keep a realistic mindset.

I don’t want to see people putting their whole life on the line, on an idea that probably just won’t work. Do you really need another generic web 2.0 toy. There were a lot of toy-ish websites built from 2006-2008, and most of that will die given the recent economic downturn. People need to get real. Build something that solve problems.

1. Know when to quit. My logic is same as what Seth Godin says in The Dip: “What really sets superstars apart from everyone else is the ability to escape dead ends quickly, while staying focused and motivated when it really counts.” Think about if you are fighting a drawn-out battle. Sometimes, it’s hard to tell, but are users interested? do you have a core following who keeps coming back. Know when there’s a cliff ahead of you and that you need change paths.

2. Be prepared to fail, and adapt. Your college degree will probably do you no good in world of startups. Your first idea probably won’t be your best. However, maybe you don’t need to quit entirely. The smartest thing to do is probably see how you can modify your product to something better. You can’t be cocky or arrogant. Don’t be stubborn and try to fit a square in a circle. Loren Feldman is probably going to tell you that you suck, and be prepared to face reality.

3. Have a backup plan. What the hell are you going to do if the startup dies? Would you have the motivation to start another one? Can you go back to school? Outline a plan of what you’re going to do, and see if it’s something you can handle. We always hear about the startups that succeed, but rarely about the ones that disappear. It’s crazy to do a startup, but it’s delusional to go on with the idea thinking it’s a one-way street to billionaires.

4. “All we have to get is 1% of the market.” Don’t let this be your only motivation for pursuing your startup. First of all, getting 1% of the market is not that easy. And second of all, if you product is only geared toward 1% of the market, it’s probably not going to change the world. Even saying your “projections are conservative” is not a good approach; you have no idea what your sales are going to be.

5. Make App, Get On Blogs, Profit! Don’t let your entire marketing plan be based on getting on TechCrunch. The best way to go viral is to build an app that matters. Similarly, Facebook’s platform is not going to help you “go viral” if you making something meaningful. Then again, 90% of Facebook apps are meaningless, so take my advice with a grain of salt.

That being said, it’s much easier to criticize than to actually build something. Like many others, I still have a lot learn. I still believe it’s still a good time to start up. Go crazy

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