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When working on the same Excel file with multiple people, you may encounter the error message "file is locked for editing by another user." To avoid this, you can enable the "Share a Workbook" option in Excel, which is hidden by default in newer versions. To bring back this option, go to File, then Options, click on Customize Ribbon, and add the option to the ribbon for easy access. This allows for collaborative work on a single document like a database.