There are four main pitfalls entrepreneurs need to be wary of when launching a new venture. Here Brad highlights the four major pitfalls:

1. Bad critical hire in the beginning
2. Bad early investor
3. Bad anchor client
4. Running out of capital

For Mr. Parsons, effective cash flow management is priority number one and hiring a bad early employee can stunt growth or completely jeopardize the company. He also reminds us of the importance of understanding the market you play in.

EP5 set to release next week.