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The cash components needed to start a business are separated into types of capital resources: capital expenditures, startup expenses, and working capital, plus a safety

The cash components needed to start a business are separated into types of capital resources: capital expenditures, startup expenses, and working capital, plus a safety margin, which is a contingency amount based on the probability that the entrepreneurs estimates might be off. Breaking out the total funding requirements by types of capital helps an entrepreneur make decisions that might bring down the cost of starting the business. Provide an example of this using your own business idea or one with which you are familiar.

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