I was on an American Marketing Association (AMA) panel today with Reggie Bradford of Vitrue and Joel Lunenfeld of Moxie Interactive — moderated by Benjamin Rudolph of Relevance Advisers. Reggie made a comment that stuck with me saying he received advice early on from a VC who’s been investing in startups for 20 years. The VC told him these are the two most common mistakes made by entrepreneurs:
- Not firing poor performing/bad fit employees fast enough. As an entrepreneur, there’s an effusive optimism that plays out in the tendency to believe everyone can be successful on your team. That’s just not the case — be slow to hire and quick to fire.
- Pricing the product or service too low. When first launching a product or service, the natural inclination is to price it in a way that makes it appealing to large group of buyers, which usually means a lower price. Unfortunately, a lower price can mean the difference between success or failure as it signals a quality message and affects margins.
What do you think? What are the most common entrepreneur mistakes?