| . |
|
BUSINESS PLANS : Business Plan Competitions Offer more then MoneyIn a time when money is tight and funding is tougher than ever to get, winning a business plan competition could provide a nice boost to start a business. But money is not the only reward you can get for running the gauntlet of business plan competitions. Eager young entrepreneurs might pick up some fame, connections and critical experience by signing up for a business plan competitions. For many entrepreneurs, planning for the competition is an education all its own. With scorecard in hand, "I feel like the Olympics, where I’m judging games," says Frederic Abramson, founder of genetic research company AlphaGenics Inc. in Gaithersburg and a judge for the Mid-Atlantic Business Plan Competition run by the Massachusetts Institute of Technology Enterprise Forum of Baltimore-Washington. The competition, which will announce winners May 2, is open to student teams and new technology companies seeking funding. Abramson scores entrants on several factors: Do they describe their markets well? Do they describe their competition accurately? Are their financials sensible? Entrants stand to pocket a piece of the $70,000 in prize money. Although fewer students are entering the contest, Abramson has seen a strong interest from entrepreneurs in the non-student category, which is new this year. Overall, the application numbers have remained constant. The amount of prize money in the MIT competition is not going to launch a company, of course, but Abramson thinks the greatest reward for participants is feedback. "You may have a good business idea, but in order for you to move an idea, you’re going to have to transform it into a business," not always a natural thing for technical people, he says. The competition’s judges and audience members offer comments on both the content of the plan and the presentation itself. Then there is the value of a good, nerve-shaking rehearsal before a live audience. "It’s a practice routine before people go out and ask for real money," says Jim Wolfe, entrepreneur in residence at the George Mason University School of Management and a frequent contest judge. Three times a year, the Business Alliance of George Mason University holds a Grubstake Breakfast, an opportunity for entrepreneurs seeking $250,000 to $2 million to make their case before a group of investors. Typically, 80 to 100 companies want to make a presentation at the breakfast, and four or five are selected. Convoluted concepts don’t fly. "Having to explain your business forces you to keep it simple," Wolfe says. Many of Grubstake’s alumni have gone onto to reap bigger funds. Sterling-based South49 Solutions Inc., which pitched in 2006, recently completed a $1.2 million round of funding. Reston software developer Mpowerplayer Inc., an October 2007 presenter, raised $2.5 million. Grubstake’s application numbers have not changed during the recession, but Business Alliance Executive Director Judy Costello thinks that’s because the event has evolved to focus on companies that are further along in their growth. She has seen an interest in the program’s boot camp training program, which caters to new entrepreneurs. "Our goal is to help companies be successful," Costello says. "It’s not just to put on a show." For many business plan writers, financial success does not hinge on winning the competition. They are more interested in capturing the attention of angel investors. "Angel investors like getting into the excitement," Abramson says. "For them it’s a personal thing." Angel investors often orbit these competitions, either as judges or just as curious entrepreneurs. If an entrepreneur’s enthusiasm impresses them, they might consider flipping open their checkbooks. That is especially true now as many angels have pulled their money out of the market and are on the lookout for creative things to do with it, Abramson says. They may have $100,000 or $200,000 to place as a bet on something that looks promising. "It certainly beats putting it into Bank of America to watch it disappear," Abramson says. "They like the excitement, they like to gamble, and they wouldn’t want their money sitting on the sidelines." Even if no angels descend, simply entering a competition may help entrepreneurs nudge an idea off the drawing board and into action. By day, Aleksandra Trpkovska works in the consulting industry. But out of the office, she is working with Aleksandar Stefanovski, a doctoral candidate in the computer science department at The George Washington University, to enter a bilingual children’s magazine into the university’s Business Plan Competition. Their team is among the 38 — out of 210 entries — that reached the competition’s quarterfinals. "By participating in this business competition we are actually nursing the idea of a bilingual magazine for children into reality," Trpkovska says. "It is no longer another one of those ‘wouldn’t it be nice if’ scenarios of wishful thinking." When you are putting your business plan under the microscope, here are some notes from judges to keep in mind: by: portfolio.com Apr 2 2009 - http://www.portfolio.com/news-markets/local-news/washingtondc/2009/04/02/business-plan-contests-offer-more-than-money Writing a Business DescriptionThe first thing you need to concentrate on when you write the business description is its structure. By structure we mean the type of operation....Business Plan DefinitionA business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals...Free Sample Business PlanRemember that your plan should be only as big as what you need to run your business. While everybody should plan a outline to help run a business, not everyone needs a complete formal business plan...Design Business Plans to Start a BusinessBusiness planning is about results. For every business plan, you need to make the contents of your plans match your purpose. Don't accept a standard outline just because it's there.Five Business Plan MistakesIf you are preparing to raise capital from either an investor or a bank, you’re probably writing a business plan. Here are five of the most common mistakes that I have seen as a result of my experience as a commercial banker and corporate-finance consultant...Do I Need a Business Plan for a Loan?Not everyone who is going to start a business begins with a business plan. It all depeneds on what size and kind of business. If you are a freelance designer or you are a one man show data entry business...Three key messages for designing business plansThree key messages for designing business plans you must clearly and convincingly communicate to your lender or investor...How to Write a Business PlanWriting a business plan can be ohat is worth doing, you need to take the time and aquire some information....Other related Articles: Start-Up Founders Forget About Business Plans? Dec 15, 2009This past summer, HubSpot Inc. received several offers from venture firms to invest in the marketing software start-up all without a formal business plan. ...Develop a business plan to make more money October 27, 2009It's time for you to develop a business plan, whether you're just starting up or are already running a company. ...Wow Investors : Web-Savvy Business Plan August 27, 2009As an online business owner or potential startup, one of the major documents you will need to get funds from potential investors is your business plan. ...Home Based Business Plans August 23, 2009Business school students spend a lot of time learning about different strategies to create a successful business plan. All businesses should have a fully ...How far will a business plan get you? June 30, 2009Business plans can be useful tools. But a new study finds that they do little to help entrepreneurs get financing. ...Why Business Plans Don’t Deliver June 30, 2009An economic downturn is a great time to start a business....and prepare a business plan? ...The business plan- who, what, when, where June 16, 2009Once you've decided you may want to start your own business, you need a business plan as well as two important milestones ...Business Plan Competitions Offer more then Money Apr 2 2009In a time when money is tight and funding is tougher than ever to get, winning a business plan competition could provide a nice boost in cash for a start-up. ... |
. |
