Planning for Gold At business plan competitions across the country, judges sift through talented teams of presenters to find out who deserves the precious prizes--cash, services and VC exposure. Could your startup be the next to strike it rich?

There's an air of optimism about a business plancompetition. Teams bustle along, rehearsing their business planpresentations before delivering them to illustrious judges who notonly have business acumen, but are also often connected to large VCfirms. Permeating every conversation is a we-can-do-it attitude.Business ideas can range from the highly technical biomedicalindustry to the more ethereal creative arts arena. Yes, thecompetition part of it can be nerve-wracking, and the judges arenot what one would call an easy audience. Still, it's a greatopportunity to win cash and prizes for your business and get pitchtime in front of actual VCs--and it's also a huge learningexperience from start to finish. It may very well be in thedrinking water at a business plan competition, but the generalattitude is this: No matter what happens, we'll build abusiness.

The good news is that these hotbeds of entrepreneurialinspiration are taking place at more venues across the country (andthe world, in fact). A large percentage of business plancompetitions are associated with university MBA programs, noteexperts, but a fair number are also produced by communities, opento anyone in the local area or to businesses of a certain type toencourage economic growth. "There are definitely more opencompetitions," says Mark Cannice, director of the Universityof San Francisco (USF) Entrepreneurship Program. "As the wordspreads about allowing [people] the opportunity to develop acomplete business concept and offer it to professional investorsand executives, I think that experience has been so powerful andfruitful for so many...I think the demand for most universities tohave [competitions] seems to be increasing as well."

To successfully enter the business plan competition fray, knowthese caveats: Decide if you can enter a university-sponsored one(usually, someone in your management team is required to be an MBAor a graduate student). If your team has no MBAs, you might be ableto enter a community or corporate competition with many of the samebenefits.

The real test, though, is the future success of business plancompetition winners. Do they make it past the startup stage tofulfill their competition-era promise? For Chad Joshi, winner ofthe WPI Venture Forum Business Plan Contest in Worcester,Massachusetts, in 2000, the potential that judges saw in hisbusiness has certainly been fulfilled. The WPI contest, affiliatedwith the Worcester Polytechnic Institute, is open to anytechnology-based startup or pre-startup in New England. Joshi,founder of Energen Inc., began laying the groundwork for hiscompany in 1996. The Lowell, Massachusetts-based companymanufactures precise motion control products often used inscientific research and optical equipment.

Still in the R&D stage of his business, he first entered thecompetition in 1998 and came in third. "It was a good learningexperience," says Joshi, 46. "I got to meet with thepeople that reviewed my business plan." Getting valuablefeedback, he entered again in 2000 and won that year's firstprize: $10,000 ($5,000 in cash and $5,000 in services from varioussponsors).

It was just the boon his company needed. "Certainly, it gotthe attention of the VC community," notes Joshi. "Theywere much more interested in hearing our story and what we wantedto do." The connections he made through the contest wereinvaluable, too, as many of his contacts ended up offering goodbusiness advice and mentoring his company through its early growth.Today, projecting sales between $1.5 million and $1.7 million,Joshi reflects on what a positive experience a business plancompetition provides for aspiring entrepreneurs. "It's avery good way for new people to learn about building abusiness," he says. "If I had a different business that Iwas looking to get off the ground, it would be a great way to getexposure."

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Competition 101

The exposure and connections within the business community thatbusiness plan competitions provide are the primary draws, saysCannice, director of the USF International Business PlanCompetition. Started in 2000 as a competition only for USFstudents, it later expanded to include national and internationalteams. Requiring at least one member of the team to be a graduatestudent, the competition offers $25,000 worth of prizes ($10,000for first place and smaller increments for second, third and soon).

Because of its location in San Francisco, a main draw for theUSF contest is the opportunity to present plans to the high-techVCs who often serve as judges. "Each contest has its ownflavor," Cannice says. "The biggest draw is not so muchthe money, but a once-in-a-lifetime opportunity to pitch theirplans to VCs from Silicon Valley...to get the exposure in oneweekend that most entrepreneurs will never get in alifetime."

Though sponsored by a university, the business plan competitionis not just an academic exercise by any means. "Most of [ourearly finalists] are trying to raise money and build abusiness--the 2004 winner from Wharton [MicroMRI] has just raisedhalf a million dollars in seed capital," says Cannice.

If you're interested in participating in next year'scompetition, slated for March 9 to 12, 2005, the applicationdeadline is January 25, 2005. Check out the website for more information.

The grand-prize winner of the USF competition also receives anautomatic entry into the Moot Corp. Business Plan Competition atthe University of Texas, Austin, and a chance to compete for$100,000 in equity investment. Known as "The Super Bowl ofWorld Business Plan Competition," the contest first started in1984. Formed at the request of two MBA students at the time, theMoot Corp. Competition initially intended to offer MBA candidatesthe same type of experience that the "moot court"experience offered law school students. Today, the event attractsgraduate school teams from all over the world who pitch theirbusiness plans to prominent VCs and business leaders.

Businesses ranging from biotechnology and health to artequipment and supply have been successful at the Moot Corp.Competition in the past. The 2003 winning business plan came fromthe team from Kidsmart Corp., representing the University ofGeorgia. A smoke detector with a voice recording in it, the productis designed to wake children with the sound of their parents'voices in the event of a fire.

Still, even teams that don't go home with first prize oftengo on to build successful companies. "It really is aninstitution that's a win for everybody involved," saysGary M. Cadenhead, director of the Moot Corp. Program. "Evenif a team doesn't come home with the first prize, they'veimproved their skills and gotten feedback from knowledgeablejudges." If you're interested in participating in the MootCorp. Competition, slated for May 4 to 7, 2005, go online forapplication deadlines and additional information.

Serving a different community is the Piedmont TriadEntrepreneurial Network (PTEN), formerly the Triad EntrepreneurialInitiative. Located in Winston-Salem, North Carolina, it wasstarted in 2001 to encourage entrepreneurship and economicdevelopment in the 12-county North Carolina Piedmont Triad region.PTEN sponsors business plan competitions for plans in three roundsof development. The Spark Competition is for the concept stage,offering six prizes of $1,500 each. The Verge Competition is forpreliminary business plans, offering three prizes of $10,000 andthree of $2,000. Finally, the Fuel Competition is for comprehensivebusiness plans, with a grand prize of $50,000 in cash, 12 months ofincubator space, and training and mentoring. (Runner-up teams viefor prizes of $20,000 and smaller increments.)

The contest is open to anyone who lives, works or attends schoolin the Piedmont Triad region with startup or expansion plans forbusinesses with high-growth potential, says Sheila Lyons, PTENexecutive director. Existing businesses with headquarters in theregion are also eligible to participate, as long as they fall underthe revenue and employee limitations set by PTEN.

Like the university-sponsored contests, the competition offersparticipants an invaluable chance to get real-world feedback ontheir business plans from renowned experts while competing for cashprizes. "You need to get out there and make contacts,"says Lyons. "You need to network. You need to talk to otherentrepreneurs about what's worked and whathasn't."

The PTEN program also offers educational courses that teams cantake to prepare for the competitions. And when it's all saidand done, the final presentations make for an exhilarating scene."It is such a thrill; it's just the most exciting thing tobe standing there at the podium and announcing the winners,"says Lyons. "The energy, the excitement . . . Even ifyou're not one of those top six winners, you get so caught upin it. This is a fabulous world."

Each PTEN competition stage has different application deadlinesstarting in the fall. Log on to www.triadlaunchpad.org for more information.

Eyes on the Prize

• Do investigate competitions on both the local andnational levels to see which ones would be a good match for yourventure. Check out past winners' business plans to get a feelfor not only the structure and content of plans, but also the typesof businesses represented.
• Don't overlook the business plan arena just becauseyou're not a graduate student. Even if there isn't acontest in your area that's unaffiliated with a school, expertssuggest contacting business schools and contest directors who mightbe able to point you in the direction of student-led teams lookingfor experienced businesspeople to add to their managementteams.
• Do take advantage of the pre-contest seminars andmentoring options available to enhance your business plan andimprove your presentation.
• Don't be discouraged if your business ideadoesn't fall into the technology or biotech arenas. Though manybusiness plan competitions garner a large percentage of plans fromthese industries, successful companies can be built in anyindustry, from arts and entertainment to transportation or petcare.
• Do go into any competition expecting to be inspired.You're going to be surrounded by some of the brightest minds inthe world who are steadily mounting the business revolution oftomorrow. Just soak it in.

A Winner's Walk

Winning the 2001 USF Business Plan Competition was exciting forTyler Bennett and teammate Felix Schupp. Their business plan forPhysicianPalInc., a business services provider for physicians and surgerycenters, won them that year's first prize of $1,000.

The whole competition and aftermath was a learning experiencefor the pair. While winning gave Bennett, 34, and Schupp, 29, greatexposure, the connections they made helped them navigate the brutalVC environment of 2001. "We ended up getting additionalfeedback from one of the judges, who [became] our friendafterward," says Bennett. While the VCs liked their plan, theyweren't readily dishing out money during that time, a factreinforced by their new friend and former judge. So the businesspartners went forward, building the company on their own to get tothe stage where they had a proven product with provencustomers.

The competition itself, notes Bennett, was a good jumping-offpoint to get PhysicianPal where it is today. With deals currentlyin the works, the San Francisco company could gross as much as $1million in sales this year. Looking back, Bennett says, "Itdefinitely got us motivated. A month later, we incorporated andstarted working on software development. It validated what we weredoing."

Whether it's through a university or a local businessinitiative, a business plan competition can be just the inspiringforum entrepreneurs need to launch their ideas into thestratosphere. From the seed money to the indispensable business andventure contacts, participants in such events often come away witha renewed vigor for entrepreneurship. "Entrepreneurship, inwhatever form, is alive and well," says Cannice."It's nice to see we have a lot of passionate engineersand scientists and cooks and chefs and artists. It's excitingto see everyone come together. But what it boils down to is:Who's really excited about what they're doing? Who'swilling to take the time to build an organization that can dosomething that's not just neat, but [also] something that canactually make money and do well under competition?"

Up-and-Comers

The SBA has gotten into the business plan revelry, launching itsfirst-ever youth entrepreneur business plan competition. Originallyconceived as part of the organization's 50th anniversarycelebration, it was created to breed an increased focus on youngentrepreneurs. Held during the SBA's May 2004 conference, SBAExpo '04, and organized by the SBA and the NationalEntrepreneurship Association, the competition accepted businessplans from entrepreneurs enrolled in colleges and universities.

Fifty finalists were asked to compete at the Orlando, Florida,event; plans ranged from an urban greeting card company to aninternational cell phone rental company to the winning plan--atravel and concierge company. The winning team and runners-up wererecognized by the SBA at an evening reception and also receivedprizes from contest cosponsors such as Hewlett-Packard, Microsoftand Office Depot.

The veteran entrepreneurs in attendance were impressed."They really appreciated the opportunity to meet with young,bright minds that are going into the challenging and compellingworld of entrepreneurship," says Jack Bienko, deputy associateadministrator for strategic alliances at the SBA. "We expectthat there were some friendships and mentoring relationships struckduring the conference."

The SBA intends to continue the program and is planning for nextyear's competition; details hadn't been set at press time.Go to www.sba.govfor more information.