Manage Your Working Capital
Most entrepreneurs fail in this endeavor because they don't fully understand it.
Working capital assumes various forms, and not all businessesinvolve the same kinds of working capital. Retail stores, forexample, do not need to contend with accounts receivable, just asservice businesses do not keep large inventories of finished goods.Homebased entrepreneurs, meanwhile, may deal with some or all formsof working capital, albeit probably on a much smaller scale thanlarge corporations.
Excerpted from Starting a Home-based Business
Entrepreneur Editors' Picks
-
This Co-Founder Was Kicked Out of Retailers for Pitching a 'Taboo' Beauty Product. Now, Her Multi-Million-Dollar Company Sells It for More Than $20 an Ounce.
-
Have You Ever Obsessed Over 'What If'? According to Scientists, You Don't Actually Know What Would Have Fixed Everything.
-
After He Was Fired From the UFC, This Former Fighter Turned His Passion Into a Thriving Business
-
Most People Don't Know These 2 Things Are Resume Red Flags. A Career Expert Reveals How to Work Around Them.
-
How One Woman Turned Pandemic-Induced Boredom and a Makeshift Garage Art Studio Into a Thriving Franchise
-
Use These 4 Self-Care Rituals for More Resilience and Less Depletion
-
Shark Tank's Barbara Corcoran Wants to Invest in 'Someone Who Probably Needs a Good Shrink Instead of a Business'
