Build with Leila Hormozi What A $9M Tax Bill Taught Me About Employees | Ep 68
Aug 31, 2023
Navigating business growth requires a solid understanding of experience and team dynamics. Hiring seasoned members significantly reduces risks and speeds up success. A hefty tax bill serves as a wake-up call about the importance of balance in team expertise. Identifying talent based on industry, role, and company type is crucial. Inexperienced leaders often overlook this, leading to challenges. Emphasizing experienced hires could be the difference between thriving and failing in business.
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Equity Acquisition Surprise
- Leila Hormozi recounts a dinner with entrepreneurs who proposed a business model involving equity acquisition.
- They planned to acquire 50% equity after increasing a company's profit by $1 million monthly, unaware of the immediate capital gains tax implications.
$9 Million Tax Bill
- Leila Hormozi shares a past mistake where she hired an inexperienced finance director lacking industry and company-size experience.
- This led to a surprise $9 million tax bill, highlighting the importance of experienced team members.
80/20 Experience Ratio
- Build a team with a mix of experience levels, aiming for at least 20% of "been there, done that" individuals.
- These experienced members significantly reduce risks and elevate other team members.