#6 - Take too many risks

This is a tricky one.  These days, you can't get a publishing contract without a 50-70% finished product, and you can't get capital to look at you without at least an impressive demo.  So, if you are starting out, you have to spend some time and effort on a product that may never be funded.  That's a risk you can't avoid.

But that's as far as you should go.  Once you are satisfied with your demo, stop working until you have the people and the resources to FINISH development.  In the meantime, find a job elsewhere if you have to.  Running out of money 75% of the way into a project will never get you anywhere.  At best, you'll sell the project at a substantial discount to save the company.  At worst, you'll lose your house and your health.  Never underestimate the psychological and physiological effects of financial trouble.

Step #7