Here’s a very interesting essay derived from the author’s book “Hackers & Painters” that describes how to start a startup company the right way. The author Paul Graham describes some very common mistakes that many startup companies do, and tells the readers how to avoid those pitfalls.
You need three things to create a successful startup: to start with good people, to make something customers actually want, and to spend as little money as possible. Most startups that fail do it because they fail at one of these. A startup that does all three will probably succeed.