There are any number of pitfalls entrepreneurs can make when trying to start a business. USA Today columnist Steve Strauss has advice on four start-up mistakes to avoid.

1. Don’t take on too much debt. It’s expected that most entrepreneurs will have to take on some debt, but Strauss says to keep it to a minimum and have a plan to pay it back. It’s easy for a business to go under as debt accrues interest and cash flow shrinks.

2. Not having a marketing plan. The only way to get your name out there is through marketing and advertising. Social networking is a great way to do it on the cheap, says Strauss. On his web site www.MrAllBiz.com , he offers a webinar called Marketing on a Shoestring.

3. Don’t jump into decisions without carefully consideration. Before entering a partnership, for example, work on a project together to find out if your styles and goals are compatible. Strauss also says to beware of bad vendors and lousy locations.

4. Not having a great team. The problem with being too independent is that there is not another person around to give you feedback and share the work, says Strauss. How do you build a great team? The Small Business Administration and its Related Small Business Development Centers offer no-cost and low-cost counseling and training seminars. Find interns at local business schools, or consider hiring part-time employees. Tap business associates and fellow entrepreneurs to serve as informal advisors.

Small businesses are the “places where most new jobs begin,” President Obama said in his weekly radio address Saturday, a day after announcing new measures to create jobs.

Obama has proposed tax incentives and credits, expanded government loan programs and aid to community banks that he said will help small businesses hire new employees, reported Bloomberg News.

The president’s plan would eliminate capital gains taxes on small businesses in 2010 and give small businesses a $5,000 tax credit for every new job created. In addition, $30 billion from repaid bank bailout money would be distributed to community banks to spur small business lending, said the Associated Press.

The plan would also temporarily increase the cap on Small Business Administration loans from $350,000 to $1 million and expand the SBA program to help refinance commercial real-estate loans, said the AP. All of the proposals would need to be approved by Congress.

The unemployment rate has finally dipped just below 10 percent, but with the public deeply frustrated by sluggish job growth, the administration is refocusing its efforts on job creation.
“Government can’t create these businesses, but it can give entrepreneurs the support they need to open their doors, expand, or hire more workers,” Obama said in the radio address.

Austin is the best city in the country to start a small business, according to a Portfolio.com/bizjournals study.

The Portfolio study analyzed the nation’s 100 largest metro areas, looking for the places that are most conducive to the creation and development of small businesses.

The highest scores in the study went to areas that have prosperous economies, are expanding rapidly, and are densely packed with small businesses. A small business is defined in the survey as any private-sector employer with 99 or fewer employees.

Despite the recession, Austin experienced impressive population, job and small business growth. The number of small businesses in the Texas capital increased 5.6 percent between 2006 and 2007, the latest period covered by official statistics. The typical metro area experienced small-business growth of 1.4 percent, said Portfolio.

The most promising region for entrepreneurs is the South, which is home to 12 of the 20 best metros for small businesses, according to Portfolio.

Rounding out the top five cities are Baton Rouge, La.; last year’s top city, Raleigh, N.C., came in third; Charleston, S.C. was fourth; and Portland, Maine was fifth.

Detroit came in last in the small-business rating, along with Youngstown, Dayton, and Toledo, Ohio, and Milwaukee.

With the collapse of secure corporate jobs, more people are pursuing an entrepreneurial path, says Entrepreneur.com.

The Kauffman Index of Entrepreneurial Activity, which measures new startups, shows a slight rise in the creation of small businesses even since the recession began, and that is expected to continue through 2009, according to Entrepreneur.com. About 1 million people a year become self-employed, and enrollment in entrepreneurship programs at universities is up.

But how does this square with the hits small businesses have taken in the past two years?

Many experts say that the recession is actually the perfect time to begin planning a small business startup. Office space and supplies are cheaper; with larger companies closing or downsizing, there are service gaps in many areas; and with the high unemployment rate there are plenty of talented people looking for work and ready to hustle.

While entrepreneurs may not see an immediate payoff, smaller, more flexible and creative companies are the business model of the future. And new technology will be the key to creating this new entrepreneurial society.

“Suddenly, you don’t have to have a large physical plant to start a company,” Michael S. Malone, author of “The Future Arrived Yesterday: The Rise of the Protean Corporation and What It Means for You,” told Entrepreneur.com. “The cost of entry is getting close to zero — now the little guys can build a business without the overhead. The best strategy is to get small and adaptable, strip things to a solid core and hire from the cloud of talent out there — then blow up like a puffer fish when you encounter a potential market.”

If you’re looking to start a small business, you should consider Oklahoma City as a launch pad, according to a report by CNNMoney.com.

Growing economies, affordable workers, stable housing markets and low crime are the factors entrepreneurs should consider when starting a small business, said the CNN report.

CNN used 2007 U.S. Census data to compare a city’s population and the number of small businesses employing up to 50 people. They determined the top 10 small-business-friendly cities are:

1. Oklahoma City
2. Pittsburgh
3. Raleigh
4. Houston
5. Hartford
6. Washington, D.C.
7. Charlotte
8. Austin
9. New York City
10. Baltimore

When it comes to boosting budding entrepreneurs, look no further than the Tar Heel State.
According to a Feb. 13 report by bizjournals, North Carolina is home to two markets with the nation’s top ranking for “small-business vitality.” And by top, they mean the very top — Raleigh is No. 1 in the national rankings and Charlotte is No. 2. Bizjournals said it used a six-part formula to analyze the nation’s 100 largest metropolitan areas, searching for the places that are most conducive to the creation and development of small businesses.

Here’s why North Carolina is a leader even in tough economic times, according to bizjournals:

• Population: Raleigh and Charlotte together gained 427,000 new residents between 2002 and 2007. Raleigh grew by 21.2% in that five-year period, Charlotte by 17.4%. Both dwarfed the national growth rate of 4.8%.
• Employment: The two regions are cushioned from the recession by outstanding job growth during the 2003-08 span
• 23.0% in Raleigh, 15.4% in Charlotte. The U.S. gain was 5.8%.
• Small-business growth: The number of small businesses grew dramatically in both markets from 2005 to 2006, the latest period covered by official statistics. Raleigh posted a 4.6% rise, Charlotte 4.0%. The national increase was 1.3%.
• Small-business concentration: The typical U.S. market has 24.57 small businesses for every 1,000 residents. Raleigh was listed at 27.58 per 1,000, Charlotte at 27.07. Third in the “Top Five” ranking was Seattle, followed by Austin and Boise, Idaho. Detroit was last, battered by the decline of the automotive industry and high unemployment.

To see a slideshow on the Top Ten click here.