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5 Fatal Errorsto Avoid When Starting a Business
By Holly A. Magister, CPA, CFP®
Working with business owners offers me an incredible window into the world and ways good people think and act. It is such a wonderful pleasure to be part of the lives of successful women entrepreneurs!
Recently, small business owners and people who start a business were identified in both the Rasmussen Reports and the Harris Poll with the highest favorability ratings. These two reports confirm what I have observed for decades. Entrepreneurs are good people who work very hard, create opportunities and help others succeed.
Just last week I listened to a lifelong entrepreneur explain to her Attorney why she was allocating a substantial portion of her business sales price to be paid to her employees. Several of those employees no longer work for her company. In fact, they left the company’s employ many years ago. So, why would a woman entrepreneur divert several million dollars from the sale of a business to others, when a written contract does not require it?
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Without a single doubt, there is only one obstacle or "deal breaker" that I have come across over the years that is insurmountable. And it always surprises the Seller. "What could that be?" you are wondering.
Well, before we get to that, let's talk a bit about what makes a business valuable after the business owner departs for her golden years in retirement.
Well, before we get to that, let's talk a bit about what makes a business valuable after the business owner implements a successful exit strategy and departs for her golden years in retirement.