Hiring the Wrong Skills at the Wrong Time: A Common Founder Pitfall

Time and again, we encounter founders who make the mistake of bringing the wrong skills on board at the wrong time — whether in the selection of employees, co-founders, or business partners. Too often, the focus is on talents whose expertise isn’t necessary for the current development stage of the company. That’s why we’re addressing this issue in this article — to highlight common pitfalls and help founders make informed and timely decisions when it comes to hiring and partnerships.

In the early stages of a startup, assembling the right team is critical. This is when founders lay the groundwork for future success, and focusing on the right skills at the right time can determine whether a company thrives or fails. Especially in the pre-seed phase, where resources are scarce and goals are still unclear, decisions about which talents and business partners to involve are particularly crucial.

Credits: Branko Stancevic via Unsplash

The challenge is not only to find capable employees or partners but also to identify exactly which skills are most urgently needed at the current development stage. Founders often run the risk of focusing on the wrong skill set — either because they feel pressured to deliver results quickly or because they fail to account for the long-term needs of the business model. This mistake can have far-reaching consequences: Hiring employees too early, whose expertise isn’t needed in the current phase, leads to unnecessary costs and slows down the agility of the company. Furthermore, strategic partnerships formed at the wrong time can overwhelm the startup or divert resources in the wrong direction.

The aim of this article is to provide founders in the pre-seed and seed phases with clear guidance on how to identify and prioritize the right skills early on. Especially in these critical phases, where it’s about validating the idea and building initial structures, it’s essential to allocate resources efficiently and only bring on board talents and partners who can immediately contribute to progress. By highlighting common mistakes and analyzing which skills are most important in these early stages, this article aims to support founders in making informed decisions and laying the foundation for long-term success.

Misjudging Timing: Which Skills Are Crucial in the Pre-Seed Phase

In the pre-seed phase, a startup is just beginning its journey. The idea is born, but it has yet to be validated in the market. The biggest mistake founders can make in this phase is to focus too early on the wrong skills — such as growth or sales, before the product is even ready. Instead, the focus in the pre-seed phase should be on product development, market validation, and prototyping.

1. Product Development: Laying the Foundation
   The most important task in the pre-seed phase is to develop a product that solves a real problem and provides clear value to the target audience. For this, you need talents who can quickly and efficiently develop a Minimum Viable Product (MVP). These individuals should ideally be technically skilled and able to keep the market potential in mind. The goal is not to have the perfect end product right away but a functional version that can be tested quickly.
   Founders often make the mistake of involving external resources in areas like marketing or PR too early, even though the product isn’t market-ready. At this stage, it’s crucial to have developers or engineers who can quickly build prototypes and are flexible enough to respond to feedback and make adjustments.
2. Market Validation: Understanding What the Customer Wants
   In addition to product development, market validation is one of the central tasks in the pre-seed phase. Founders must ensure that there is an actual market for their product. This requires skills in market research and direct customer interaction. This phase calls for employees or partners who communicate openly, are willing to engage intensively with potential customers, and can learn quickly.
   Market validation involves testing hypotheses about customer needs and using the findings to further develop the product. Relying solely on assumptions is often not enough — concrete data and direct feedback are needed to refine and improve the product. Founders who bring in external sales experts at this stage, without having tested the product and the market, risk directing resources in the wrong direction.
3. Prototyping: Speed and Flexibility
   Speed is critical in the pre-seed phase. Prototyping — the rapid development and iteration of functional product versions — requires a high degree of flexibility. The necessary skills include both technical know-how and the ability to quickly integrate feedback into new versions. Founders should focus on hiring talents who can work in an agile manner and are willing to operate in an uncertain environment.
   A flexible team that can take on multiple roles is particularly valuable in this phase. Rather than hiring specialists who fulfill only one function, generalists who can contribute to both product development and market research are in demand. A smaller, but multifunctional team can react more quickly to challenges and make better use of limited resources.

In the pre-seed phase of a startup, the focus is on developing a viable product and validating the market — not on sales or scaling. While sales and scaling are crucial for long-term success, they do not yet play a central role in this early phase. In fact, an early focus on these areas and the hiring of specialists in these functions can do more harm than good.

1. Sales Without a Market-Ready Product Is Inefficient
   A common misconception in the pre-seed phase is that a dedicated sales team or sales strategy can accelerate success. But if the product is not fully developed or tested, the sales team cannot operate efficiently. Without a validated market and a finished product, there is no foundation for salespeople to work from. Their main task — selling — becomes challenging when they lack a well-defined product or compelling market demand to present.
   Sales requires not only a mature product but also clear processes and an established target audience, all of which are still missing in the pre-seed phase. Hiring sales experts at this stage means committing resources to an area that will only become relevant later. Instead, the team should be working flexibly with customer feedback to improve and adjust the product before promoting it on a larger scale.
2. Scaling Expertise Without a Solid Foundation Can Waste Resources
   Scaling expertise is focused on optimizing business models and processes for growth. But in the pre-seed phase, a startup is still in the phase of experimentation and learning. There is neither a mature product nor stable, repeatable processes that can be scaled. Attempts to scale the company before these prerequisites are met often result in wasted resources.
   Founders who focus too early on scaling experts risk prioritizing the wrong goals. At this stage, the emphasis should be on quick learning and continuous feedback to refine the business model and the product. Scaling only makes sense once product-market fit has been achieved — that is, when the product is demonstrably needed by customers, and there is demand. Until then, scaling is inefficient, as there is no stable foundation to build on.

Sales and scaling require stable processes, a validated market, and a mature product — all of which are still lacking in a startup’s pre-seed phase. At this early stage, the focus should be on product development, market validation, and adapting to customer feedback. Hiring sales experts or scaling specialists at this point can distract the company from its immediate goals and tie up valuable resources that should be directed towards more flexible and immediately necessary roles.

Seed Phase: Building a Scalable Business Model

In the seed phase, a startup begins to move beyond pure product development and takes the next step towards growth. The product was validated in the pre-seed phase and has shown initial market demand. Now is the time to scale the business model by creating repeatable processes that work as customer volume increases. At this stage, different skills are required than in the founding phase.

1. Sales and Marketing Know-How: Strategically Increasing Demand
   After achieving product-market fit, companies must now expand their market presence. This is where sales and marketing skills become crucial. Unlike the pre-seed phase, which focused on market validation, the goal now is to develop a systematic and scalable strategy to bring the product to a larger audience.
   Sales teams must establish efficient sales processes, build customer relationships, and ensure a steady flow of new customers. In marketing, the focus is on creating a brand identity and implementing campaigns that drive growth. These skills allow the company to increase revenue and expand its footprint.
2. Technological Scaling: Creating Structures for Growth
   As customer volume increases, so do the demands on the company’s technological infrastructure. A key task in the seed phase is to ensure that the technological base is scalable. This includes building robust systems capable of handling more users, transactions, or data.
   Technological scaling requires engineers and IT architects who can build and automate complex infrastructures. The goal is to create systems that can grow with the company without the need for manual intervention or costly overhauls. A lack of scalability in technology can slow down a company’s growth or even cause system failures as demand rises.
3. Why High-Level Management Is Not Yet Necessary
   Although sales, marketing, and technological scaling are crucial in the seed phase, high-level management is not yet required. C-level positions like CFOs, CMOs, or COOs are typically designed to manage a company that has already reached significant size and has complex structures. However, the company is still relatively small in the seed phase, and flexibility and operational focus remain paramount.
   Instead of focusing on high-level management, founders in the seed phase should continue to adopt a “hands-on” approach and prioritize leaders or employees who can take on operational tasks. In a smaller team, it’s beneficial for everyone involved to contribute directly to product development, sales, or daily operations. High-level managers who primarily handle strategic or administrative tasks would unnecessarily tie up resources without directly contributing to operational progress at this stage.

The seed phase is about building scalable processes that prepare the company for future growth. Sales and marketing expertise, as well as technological scaling, are the key areas that founders should focus on. High-level management can become relevant in later stages when the company becomes more complex, but it is not yet necessary in the seed phase. Instead, founders should focus on a strong, agile team that is ready to lay the foundations for long-term growth.

Why certain marketing expertise is nevertheless relevant right from the start

Although the focus in the pre-seed phase is on product development and market validation, a nuanced marketing perspective can already be crucial at this early stage. We frequently observe the same mistake: founders often overlook the different marketing disciplines when hiring staff or working with freelancers.

Founders who develop a deep understanding of the market lay the foundation for future sales success and the creation of a strong brand that stands out from the competition. This is not only relevant for future scaling but also for attracting the right talent to support the company’s journey.

1. Market Analysis as the Basis for Future Sales Processes
   Founders must understand early on how their product will be positioned in the market later and what sales processes will be necessary to market it successfully. A detailed market analysis helps define the target audience precisely, understand their needs, and identify the best channels to reach them. This information is essential for planning future sales strategies and avoiding wasted resources on the wrong channels or approaches.
   Without early market analysis, founders risk building their sales processes on false assumptions, leading to inefficient sales strategies and a weak market entry. A deep understanding of the competitive landscape and potential customer needs, on the other hand, allows for optimal product positioning in line with a long-term sales strategy.
2. Positioning and Value Proposition: Differentiating from the Competition
   A clear market analysis also provides the opportunity to position the product in the market early and develop a strong value proposition. Positioning refers to how the company and its product are perceived compared to competitors. This goes hand in hand with building a brand identity that fosters long-term customer trust.
   The value proposition is the central element of this positioning: it describes the unique benefit the product offers and why customers should choose it. If founders think through these aspects in the pre-seed phase, they can develop a brand that clearly differentiates from the competition. A strong brand with a clear value proposition makes it easier to convince potential customers later and build long-term customer relationships. This clarity also helps sharpen the focus of product development, as all future decisions should aim to fulfill the value proposition.
3. Relevance for Hiring: The Right Skills for Building the Brand
   A nuanced market analysis not only aids in product development and future sales strategy but also impacts hiring decisions. Founders who have a clear understanding of their positioning and value proposition from the start can hire the right talent to execute this vision. In the pre-seed phase, this means bringing in marketing and communication experts who have experience in building brands and can turn the market analysis into a compelling communication strategy.
   A well-defined value proposition and thought-out positioning also help in building efficient sales teams, as they will have a clear understanding of how to position the product in the market. This minimizes misunderstandings and avoids investing in the wrong marketing or sales skills.

A nuanced market analysis in the pre-seed phase is crucial not only for understanding the market and future sales processes but also for building a strong brand. It lays the foundation for clear positioning and a compelling value proposition that sets the product apart from competitors. This aspect should not be overlooked when it comes to fundraising either. Early focus on these aspects establishes a solid foundation on which the startup can grow and succeed in the market.

The Consequences of Misaligned Expertise: The Risk of Hasty Hiring Decisions

Making the wrong hiring or partnership decisions can significantly set back a startup in its early stages. In an environment characterized by uncertainties, limited resources, and rapid change, the mistake of bringing the wrong expertise on board is particularly costly. Hasty hiring decisions — often driven by pressure to grow quickly or increase capacity — carry substantial risks. The consequences of such poor choices can destabilize the company, wasting valuable time and money.

1. Wasted Resources: When the Wrong Roles Are Filled
   A common mistake founders make is hiring employees or consultants whose expertise is not needed at the current stage. It may be tempting to bring in experienced sales or marketing professionals early on to spur growth. However, if the product is not yet market-ready or the focus should still be on validation, this quickly leads to a waste of resources.
   These hires cannot fully leverage their strengths because the product and market are not yet at a stage where their expertise is relevant. The result: high personnel costs without real added value to the company. At the same time, valuable resources are diverted from more pressing tasks, such as product development and market validation.
2. Slowed Progress: Lack of Adaptability
   In a startup’s early stages, agility is crucial. Team members need to be able to respond quickly, take on various tasks, and adapt flexibly to new challenges. When highly specialized talent or experts relevant for later growth phases are hired, the necessary adaptability often lacks during the pre-seed or seed phase.
   These employees are often less able to act flexibly and take on different roles because their skills are tailored to specific areas. This can slow progress as the team is less capable of responding efficiently to new requirements or rapid market changes. As a result, the company stagnates instead of evolving with agility.
3. Cultural Mismatch: Team Discord
   Cultural fit is particularly important in a company’s early stages. Startups often have a dynamic, informal work culture where employees collaborate closely and take on significant responsibility. Hiring people with a more structured, traditional approach too early can lead to tensions within the team.
   A cultural mismatch can hinder collaboration and reduce team productivity. Employees unable to embrace the dynamic and sometimes chaotic nature of a young company may feel out of place and leave the startup — leading to additional costs and effort in recruiting new talent.
4. Strategic Misalignment: When the Vision Becomes Diluted
   Another risk is that hasty hiring decisions can dilute the company’s strategic direction. If founders hire experts too early, particularly those focused on scaling or sales, they may be tempted to concentrate on these areas prematurely while foundational challenges, such as product validation, remain unsolved.
   This can lead the company to misallocate resources toward long-term goals that should not yet be a priority. Instead of investing in the right areas and continuing to develop the product, the company’s strategic focus becomes diluted, slowing progress and increasing the risk of failure.
5. Negative Impact on Fundraising: Lack of Credibility and Trust
   An often-overlooked aspect in building a young company is how much the team’s capabilities influence fundraising success. In the pre-seed and seed phases, investors are not only looking at the product or idea but also evaluating whether the founding team has the right competencies to successfully build the company. If the team is poorly structured or the collaboration with freelancers and partners is not working, this can undermine investor confidence.
   A team with the right skills in product development, market validation, and technological scaling signals to investors that the founders can lead the startup and take the necessary steps to succeed. A lack of or irrelevant expertise — such as a strong focus on sales or scaling when it is not yet needed — can raise doubts and cause potential investors to hesitate. This can significantly complicate the fundraising process, as investors look for signs that founders can respond flexibly and strategically to early-stage challenges.
   Moreover, brand positioning plays a crucial role in fundraising. Investors pay attention to whether the startup has developed a clear and compelling brand identity that has the potential to differentiate in the market. External expertise, such as marketing or PR consultants, can provide valuable support in preparing for fundraising by helping present the brand professionally and communicate the company’s story strategically. A strong brand presence not only increases investor appeal but also demonstrates that the company is ready to establish itself in the market.

Hiring the wrong expertise at the wrong time has far-reaching consequences: resources are wasted, progress slows, the team can become unbalanced due to cultural or strategic misalignments, and fundraising can become more challenging. Especially in the pre-seed and seed phases, it is critical that the team and its partners possess the skills aligned with the immediate needs of the company. Hasty decisions can not only hinder operational development but also weaken investor trust and reduce fundraising opportunities.

How Founders Can Avoid These Mistakes: Strategies for Success

To avoid the common mistake of selecting the wrong expertise at the wrong time, founders need to make deliberate and strategic decisions. Clear planning, flexibility within the team, and a thoughtful selection of business partners can make the difference between a thriving startup and one that struggles. Below are three key actions that help founders allocate their resources effectively and reach their goals efficiently.

1. Clear Definition of Milestones and Priorities
   The first step in avoiding personnel mistakes is to clearly define milestones and priorities for each stage of the company. During the pre-seed and seed stages, the focus should be on product development, market validation, and building a scalable business model. Only after these foundations are established does it make sense to focus on sales and scaling.
   By setting clear milestones, founders can better estimate what skills and resources are needed at each point in time. This helps avoid bringing on board experts in areas such as sales or high-level management too early, when they are not yet essential. Prioritizing effectively ensures that founders make well-informed hiring decisions and focus on the skills that will drive the company forward at that particular moment.
2. Flexibility in Role Distribution
   Another key to success in a startup’s early stages is flexibility. Early team members should not only be highly qualified but also able to take on various roles. Instead of hiring specialized experts right from the start, it’s advisable to focus on generalists or all-rounders who have knowledge in multiple areas and are willing to take on different tasks as needed.
   A flexible team can respond to new challenges efficiently, allowing the company to remain agile. This adaptability is especially critical in the early, dynamic phases of a startup when priorities and needs can change rapidly. A flexible distribution of roles also ensures that the team isn’t too dependent on individual members, as everyone is capable of handling different tasks.
3. Strategic Assessment of Partnerships and External Expertise
   Founders need to think strategically about when and how to use external expertise and partnerships. While it can make sense to bring in specialized skills through early hires, freelancers, or consultants in the early stages, these decisions should be well-considered. Partnerships with overly specialized providers and employees can tie the company down and limit its flexibility.
   It’s essential that founders understand when specialized support is truly necessary and what value it brings. For example, during fundraising preparation, it may be useful to bring in PR and marketing experts to help build the brand and professionalize communication with potential investors. The strategic selection of expertise should always be aligned with the current priorities and goals of the company. Mistakes in this area can waste resources and slow down growth.
   While founders might be tempted to choose cost-effective alternatives, seemingly more expensive providers and professionals can offer significant value in the medium to long term. Particularly, experienced professionals with deep expertise in specialized fields can be the difference between quick success and costly mistakes. Experienced partners can help make critical decisions in product development, market expansion, or technical infrastructure, and this initial investment often pays off in the long run. This is especially true for experts who not only provide strategic advice but also contribute operationally to the company’s development.
   An experienced partner brings not only operational skills but also strategic knowledge, which can be crucial for a startup’s long-term success. These partners understand the pitfalls and challenges young companies face in the early stages and can proactively offer solutions. Founders benefit from their market knowledge, networks, and ability to anticipate problems before they hinder growth, helping to avoid costly mistakes and accelerate development.
   Partners with deep industry understanding and proven processes can help startups enter the market more quickly and efficiently. They bring knowledge not only of product development but also operational excellence, which stabilizes the company at a critical stage. Since these partners already know what methods and structures work best, the transition from market validation to scaling is greatly accelerated. This saves time and allows founders to focus on growth without repeatedly encountering the same obstacles.
   Another benefit of working with established partners is access to extensive networks and resources. These partners often have built valuable connections over the years, which can be incredibly beneficial for a young startup — whether to investors, strategic partners, or potential customers. Through these networks, startups gain not only financial but also operational support, which is particularly important during scaling and fundraising. In addition, proven partners can offer access to tools and infrastructures that a startup might struggle to build on its own.

Founders can avoid typical mistakes in personnel selection and external expertise by defining clear milestones and priorities, relying on flexible and versatile teams, and weighing partnerships strategically. These actions enable startups to use their resources efficiently, remain agile, and ensure that they are making the right decisions at every stage. This creates a stable foundation for long-term success and avoids unnecessary risks that arise from hasty hiring decisions.

Conclusion

Choosing the right expertise at the right time is crucial to the success of a startup in the pre-seed and seed phases. Mistakes in this area not only waste resources but can significantly hinder the company’s growth. By defining milestones and priorities with precision, maintaining flexibility in role distribution, and strategically evaluating partnerships and external expertise, founders can set the stage for long-term success.

In the pre-seed phase, the focus is on product development and market validation. At this stage, versatile and adaptable talents are needed who can take on multiple roles, rather than specialists in sales or scaling who will only be necessary later. In the seed phase, however, the priority shifts to building a scalable business model, with a focus on sales and marketing know-how and technological scaling.

Poor hiring decisions can undermine the team’s efficiency, slow progress, and make fundraising more difficult. It’s especially important for founders to recognize the long-term benefits of experienced and potentially higher-cost partners. These partners offer not only strategic advice and operational expertise but also access to valuable networks and resources that are essential for a startup’s success.

With careful planning and the right timing in hiring and selecting business partners, founders can navigate the challenges of the early phases and lay a solid foundation for sustainable growth. A thoughtful approach to personnel strategy is therefore a key component of a successful entrepreneurial journey.