Zod says not to worry about failure.
Paul Graham just uploaded the transcript of his 106-friendly May 2nd talk, "Hiring is Obsolete".
My favorite passage:
Even if your startup does tank, you won't harm your prospects with employers. To make sure I asked some friends who work for big companies. I asked managers at Yahoo, Google, Amazon, Cisco and Microsoft how they'd feel about two candidates, both 24, with equal ability, one who'd tried to start a startup that tanked, and another who'd spent the two years since college working as a developer at a big company. Every one responded that they'd prefer the guy who'd tried to start his own company. Zod Nazem, who's in charge of engineering at Yahoo, said:I also really like this passage:I actually put more value on the guy with the failed startup. And you can quote me!So there you have it. Want to get hired by Yahoo? Start your own company.
I can tell you what tends to be missing when people lack experience. I've said that every startup needs three things: to start with good people, to make something users want, and not to spend too much money. It's the middle one you get wrong when you're inexperienced.This is particularly true for people building Web-based applications.