Why need to participate in such events?

Besides cash prizes, that, although quite important, will rarely suffice for financing foundation of a company, there is advantage of learning from this experience - this will enrich students' knowledge in a greater degree than mere theoretical aspects they learn from lectures.

Not in last place, there is valuable opportunity of pitching business plans to quite a lot of investors in a very short time.

How Do Winners Benefit?

Innitially started as a valuable opportunity for students with bright business ideas to express them within contest conditions, business plan competitions have become a resource for some investors. There are two categories of results of such competitions:

You would say that choosing from purely theoretical plans would be highly improbable for a venture investor. Yet, that's how many successful firms came into being.

1-800 Contacts

A mail-order contact-lens-replacement company in Draper, Utah. The business plan won 1995 Brigham Young University tournament in Provo, Utah.

Attorneys @ Work

An Internet recruiting and placement service in Atlanta. Competition: 1996, University of Georgia.

SensAble Technologies Inc.

In Cambridge, Mass., won MIT competition in 1995.

Epotec Inc.

Competition: 1997, University of Chicago.

However, having good results in an important competition does not necessarily imply launching a company successfully. There is risk that some investors consider your plan an academic exercise before really studying it and thus percentage of trust is substantially reduced.

Please feel free to use this article in your Newsletter or on your website. If you use this article, please include resource box and send a brief message to let me know where it appeared. Contact:lauracio@gmail.com

Laura Ciocan writes for http://www.businessplanning.ws where you can find more information about what is a business plan

4. Gather industry data. Lenders and investors have access to financial ratios. Ratios are difficult or costly to obtain for some types of businesses. Sample financial statements are more easily found. So, find several that have revenues and expenditures similar to your venture and calculate averages for your own ratios. Gathering extensive marketing information on your potential competitors and for your target market requires a lot of preparatory work. Your readers will expect your data to be cross-referenced and full explanations for any abnormal ranges. If your research requires you to have Standard Industrial Codes (SIC) get them at http://www.osha.gov/pls/imis/sicsearch.html or http://www.census.gov/epcd/www/naics.html.

5. Perform "what-if" experiments on spreadsheets to find best presentations of tables and charts for cashflow projections, break-even estimates, product life cycle, market segmentation, implementation schedules, training programs and all other ingredients ensuring success of your venture. Accuracy and readability improve with each reiteration or rewrite.

6. Begin your networking by joining and attending appropriate associations and trade fairs. Ask about or just listen to many problems being shared. Arrange meetings with as many people you know who are familiar with businesses similar to your venture.

7. Meet with a lender or investor for advice. Try to determine their expectations for your venture and for content of your plan. Ask for any booklets and their networking suggestions. Do same with experienced borrowers.

You will appreciate benefits from your due diligence on these preparations. May writing of your business plan be less daunting. I wish I could tell you it will be a "piece of cake."