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from Entrepreneurial:

Common budget mistakes for tech startups

A call centre personnel uses a calculator as she answers a call from a investor at an online brokerage company in Tokyo October 23, 2008. REUTERS/Yuriko Nakao

A call center employee uses a calculator in Tokyo. REUTERS/Yuriko Nakao

-- Ed Buchholz is the co-founder and CEO of 60mo, a cloud-based financial services company catering to small business owners. The views expressed are his own. --

Most everyone is familiar with the cliché: more money, more problems. But what if the problem is money?

Keeping your tech startup solvent requires the avoidance of several common budget mistakes. A budget or lack thereof can make or break a startup. Keep your overhead intact by doing the following:

Have a budget. Money should not disappear from your bank account into a fiscal black hole. At my last company, we were spending money but didn’t have an accurate view of where it was going. This experience is actually the primary reason my new company’s product, 60mo, exists. Organize expenses and revenue in whatever way works for your company. Make a cash flow plan. Keep current and accurate financial statements and analyze where you can trim the fat. Having a good budget is the beginning to avoiding common problems because it's the common sense barrier between you and wasteful overspending. Avoid the first common budget mistake and actually create a budget.

Negotiate with vendors. If you are purchasing goods or services from others regularly, make contact and drive down the price. Negotiating will build important relations and reduce costs that are otherwise eating through your overhead. Vendors want your business and will offer discounts to get you to become a recurring customer. Remember even if you are purchasing online, someone somewhere is operating the site and might be willing to cut you a break if you take the time to contact them. At 60mo, we make the effort to reach out to all of our major vendors and establish a friendly relationship. It won’t always work, but its good business to at least try. Sixty percent of the time it works every time.

Tech CEO turns to trusted adviser on key decision; 10-year old daughter

Anyone who thinks the word “executive” in CEO stands for a person who actually executes decisions and strategy should think again, at least according to Technicolor CEO Frederic Rose.  REUTERS/Charles Platiau

REUTERS/Charles Platiau

“It’s very funny, you get a job as a CEO and everyone says you’ve got this absolute power,” Rose told the Reuters Global Media Summit in Paris.

“The reality is, the power you have, the authority you have is to basically guide and to give direction…and if people don’t want to follow, they’ll just forget to do it,”

from Entrepreneurial:

Is Bit.ly’s Twitter advantage unfair?

The rise of Twitter as a social-media powerhouse and its micro-blogging platform has created a renewed urgency for URL-shortening services.

There are now endless numbers of websites vying to shorten your too-long tweets to conform to the 140-character limit, but as in every competitive industry not everyone can survive and thrive. This week one of the players, Canadian-based Tr.im (owned by Nambu Network), announced it was throwing in the towel.

Now a small business closing up shop is not normally newsworthy, except when they cry foul as the ship is sinking. While on the one hand Nambu president Eric Woodward told Computerworld's Gregg Keiser that Tr.im was "accepting the realities and moving on," he also seized the opportunity to take a shot at Twitter for making Bit.ly its default URL shortening service.

from Entrepreneurial:

Young entrepreneurs to watch in the tech sector

Bill Gates was 19 when he came up with the idea for Microsoft. Michael Dell was the same age when he started selling computers out of his dorm room. Who are the teenagers and 20-somethings trying to hatch the big tech and media ideas of tomorrow?

paidContent.org has compiled a list of likely candidates under the age of 21, from web design impresarios to "pimp my MySpace" tycoons.  Taking advantage of the Web's low barriers to entry means that you often only need a really good idea. catherinecook_woCatherine Cook

Age: 19
Company: myYearbook

Some great ideas come from analysis and introspection. For siblings Catherine and David Cook, it was the result of a snarky comment. “My brother David and I were flipping through our high-school yearbook during my freshman year,” Catherine recalls. “We were looking for a girl in his class—I think he liked her—and he was trying to show me who she was. Once we finally got to the picture he was like, ‘She looks nothing like that.’”