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Manage Your Working Capital

Most entrepreneurs fail in this endeavor because they don't fully understand it.
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Working capital assumes various forms, and not all businesses involve the same kinds of working capital. Retail stores, for example, do not need to contend with accounts receivable, just as service businesses do not keep large inventories of finished goods. Homebased entrepreneurs, meanwhile, may deal with some or all forms of working capital, albeit probably on a much smaller scale than large corporations.

Excerpted from Starting a Home-based Business

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