It has been a tumultuous time for dot-corn start-ups. In fact, Gartner, Inc. estimates that over 75% of e-commerce start-ups will end in failure. 1 While it is tempting to blame prevailing market conditions for this failure rate, the fact is that early-planning ultimately determines the potential success or failure of a start-up. This whitepaper helps managers understand the characteristics that contribute to successful start-ups. 2 Importantly, this work also includes a valuable diagnostic survey that helps entrepreneurs quantify the strength of the business and identify problem areas. One thing is clear: There are a lot of ways for a new business to go out of business. 3 Loss of focus, an inability to fulfill customer orders or service, and a mismatch of top management with the corporate culture are but a few common reasons that businesses fail. To increase the chances of success, managers need to consider four crucial inputs: Management/People: The single most vital component of any business is, every start-up needs a skilled management team that can execute the business plan, adapt to changing environments, and attract and retain valuable staff. Market Opportunity: To succeed, a venture requires a business model that is adaptable, scalable, defensible, and able to generate both revenue and profits. 4 In addition, management must recognize the company's market position and the potential of its ideas in the market. Funding: The ability of the venture to raise operating cash in order to establish profitability. Product and Service: This defines the demand for the product, including the degree to which it addresses customer needs and the ability to provide fulfillment and client service functions. 5 By keeping a close eye on these found areas—strong leadership and management, good people, a solid business plan, and a product that people want to purchase—businesses can position themselves to weather inevitable challenges.