The great entrepreneurial idea is there, along with the drive to turn that idea into a viable business. Finances are the X factor. The ultimate success of a venture depends to a great extent on its founders making smart financial decisions at startup.
Having a solid business idea is no guarantee of success. An estimated one in four — 25% — of startups fail in their first year, while only about 13% survive at least four years, according to Harvard Business School figures cited by the website Mashable.com.
What financial cornerstones should the founders of a business put in place leading up to and during launch to increase the odds their venture will succeed, and to protect themselves in case it doesn’t? Here are 10 suggestions from the Financial Planning Association, the nation’s largest organization of personal finance experts: