Many first-time entrepreneurs overspend, said Tim Chang, a venture capital partner at Norwest Venture Partners. It is one of their biggest mistakes when they first receive funds, they operate as though they were larger. To this end, entrepreneurs need to be "disciplined." (Watch the interview for ways to discipline yourself.)
Additionally, another big mistake entrepreneurs make is thinking too big and losing focus. "Startups don't die of starvation," Tim said. "They die of indigestion." Essentially, Tim means that startups have to focus on that one thing they do best and deliver on that promise. The bells and whistles can come later.
Finally, when I asked Tim what he looks for in an entrepreneur, he said, "talent." The ideas and technology are all the same, for the most part, he said. The differentiator is the quality of the people.