Digg founder, Kevin Rose and CEO, Jay Adelson offered some of their tips and advice on how entrepreneurs can set up a successful company online.

Talking at the web 2.0 expo in New York on Tuesday, the duo said that Digg has grown so much since it first started in 2004.

We're about 40 million users today, (with) about 20,000 submissions a day going into the Digg system, Adelson said onstage.

When asked how they would go about starting a company today, this is what Kevin Rose had to say:

1. Be Scrappy

  • Use rented solutions like data storage or on demand servers - When I first started Digg, I was renting $99 a month servers.

2. Do Your Own PR

  • Cut costs by doing it yourself
  • Network - When attending conferences, throw your own party aside from the event but not with the event because it will probably cost more money to sponsor it.

3. Try to Meet the Influencer

  • Hack the Press - Find the most junior reporter at TechCrunch and approach them and you have a lot better chance of getting an article written about your company, instead of trying to speak to Michael Arrington.

4. Release Early and Reiterate Often

  • Don't wait until you have the perfect product - It's better to get it out there faster and learn from users feedback.

The world has changed so much sine we started Digg in terms of the (5) cost of prototyping, Adelson said as he jumped into the conversation.

The biggest problem that entrepreneurs face is getting the capital, Adelson noted.

But now its so cheap. So my argument is that if you can't prototype it without an investment, what's wrong? Why is it so complex?

If you doing something on the web, you should be able to prototype this thing for thousand of dollars, not hundreds of dollars. And depending on your preference, you an raise that with an Angel (Investor) or a Venture Partner and this way, you've got something to show for.

Watch the full interview below: