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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 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

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