Phaneendra and Kavitha were trying to come up with some new ideas for their housekeeping service. Phaneendra said, “We just don’t have enough customers; we need to drop our prices and to do that we need to cut costs. What if we switched to generic cleaning products?”
 ”Don’t you remember?” Kavitha replied. “We tried that generic window cleaner and it was horrible. It left windows all streaky. What we probably need to do is cut the cleaners’ wages.”
 Phaneendra came back, “We can’t do that; $20 an hour is what we have to pay. What if we were able to scale back their wages and pay them an incentive; the more houses they did, the more money they got?”

”Great idea! Let’s do it.”
 Kavitha and Phaneendra fell into every typical pitfall that a new business could. Can you identify them and explain why they may be wrong?