Chapter 3. Reviewing Personnel and Compensation

From an investor’s viewpoint, a company is little more than the people who work for it. Companies succeed because the people make the company succeed. A company usually fails because the people fail. An entrepreneur alone cannot carry a company very far; there must be a group of people dedicated to the success of the corporation. The entrepreneur can be a quarterback and can call some extremely good plays, but without the complete team—all the employees working together—no entrepreneur can succeed.

One of the most important areas for an investor to investigate is company personnel. What is the true work ethic inside the company? What is the group culture? How do the company’s personnel shape up in ...

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