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Committing Your Nickel

Starting a business usually involves committing personal finances, no more so than at the beginning, when banks are loathe to extend credit. To fund the business and keep a roof over one's head, the entrepreneur must maximize assets, minimize expenses, and use credit judiciously, says the author, who co-founded a financial-planning firm. Included are guidelines for determining the percentage of assets to commit and the amount of debt to assume.

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