Startup companies comprise a significant percentage of the U.S. software industry as the demand for software continues to exceed the supply available, minimizing the risk to new ventures. The challenges faced by startups are unique in each entrepreneurial enterprise. However, the implications for failing to manage the stages of software development are the same as those cited in mature organizations. The establishment and adherence to software processes can guide less experienced managers of startups and help these often struggling firms to avoid pitfalls that may reduce their chances of long-term survival and financial success. This conclusion is based upon examination of the software processes at IntraSoft Inc., a startup firm supplying intranet solutions.