I found this on sequoia.com - food for thought to all start-ups. According to Sequoia companies that do well have the following characterisitcs:
Clarity of Purpose
Summarize the company's business on the back of a business card.
Address existing markets poised for rapid growth or change. A market on the path to a $1B potential allows for error and time for real margins to develop.
Target customers who will move fast and pay a premium for a unique offering.
Customers will only buy a simple product with a singular value proposition.
Pick the one thing that is of burning importance to the customer then delight them with a compelling solution.
Constantly challenge conventional wisdom. Take the contrarian route. Create novel solutions. Outwit the competition.
A company’s DNA is set in the first 90 days. All team members are the smartest or most clever in their domain. "A" level founders attract an "A" level team.
Stealth and speed will usually help beat-out large companies.
Focus spending on what's critical. Spend only on the priorities and maximize profitability.
Start with only a little money. It forces discipline and focus. A huge market with customers yearning for a product developed by great engineers requires very little firepower.