Win your business capital

Business plans are important in getting capital for a new venture. Businessmen present their plans to capitalists, investors, banks and even friends and family. But usually entrepreneurs neglect business plan competitions.

Business plan competitions give the chance to earn fame and starting capital for new businesses. Around 50 business competitions are in the United States, usually giving startup capital to the winner.

How business competition goes

Moot Corp is one of the best known business competitions. It was started in 1984 at the University of Texas by two MBA students. They envisioned a competition wherein MBA students work in a team and would plan for a new business, write business plan and present the plan to a panel of judges. Moot Corp then expanded into a national and then international competition.

The contest with one of the biggest prizes is the $100,000 competition sponsored by the Massachusetts Institute of Technology. Other high-profile schools, including Harvard Business School, Duke University, University of Chicago and Wharton Business School, host competitions open to teams with at least one member that attends their institution.

Business Plan Directory at SmallBusinessNotes.com is a good source for finding about competitions. Local schools also post information about contests they sponsor.

Many business plans entered in the competitions become blueprints for actual companies. 1-800 CONTACTS, a mail-order contact lens firm, won the contest put on by Brigham Young University in 1995.

For many new businesses, the experience is valuable than the prize. Ampersand Art Supply, an art supply distributor, won the University of Texas plan competition in 1993. Their presentation impressed one competition judge so much he invested $300,000 in the company. WebLine Communications Corporation, an internet technology firm, won the MIT competition in 1993.  In addition to the prize, founder Pasha Roberts eventually raised more than $8 million from investors impressed with his plan's finish. Even business plans that don't win benefit from constructive criticism from the judges.