It seems to me like a lot of startups featured here make his #1 mistake - treating employees like friends (http://news.ycombinator.com/item?id=4790767 immediately comes to mind). A lot of the job offers featured here mention fridges packed full of beer and going out together after work. I'm all for having fun together as a team, but I think younger entrepreneurs probably often have a difficult time drawing the line between their business/personal relationships with employees, especially those around their same age.