While studying at Babson College, business plans were all the rage. I must have written a dozen of them, and been involved in another half-dozen competitions both inside and out of the classroom. But upon entering the “real life” startup world after college, I learned how VCs and entrepreneurs alike often considered them a waste of time. Often there are more important things to do when getting a business off the ground than putting together a 30 page document detailing every facet of the business and market that you ‘think you know’ — and which is sure to change as you continue to build your business or product. The time put into a business plan could certainly be utilized elsewhere for more meaningful results — or could it?
The winners of business plan competitions receive a sum of money and recognition — but what about the actual impact of the competition? The Enterprise Center at Salem State University aimed to answer just that question, and recently completed a study detailing the impact and importance of the North of Boston Business Plan Competition to the economy of the surrounding area.
Thirteen of the fourteen winners actually began their business on the North Shore, and all of them are expanding in the region creating valuable jobs and revenues. Four of the companies even reported 2010 sales exceeding $500,000.
“Winning the Business Plan Competition gives you instant credibility and legitimacy and opens doors. We now have relationships with banks and other funders and this would not have been possible without the Business Plan Competition,” said previous winner Heather Ashton, CEO, Ashton Industries.
Aside from the prize money, all of the winners cited other factors for detailing their reasons for entering the competition. But there was one consistent missing ingredient: the presence of local venture capital groups. Where you at VC’s?
This year’s competition is now accepting applications until January 28th. The competition is unique in the sense that it is open to all companies rather than just technology focused ones. Companies in all stages are welcome to apply.
Learn more about the competition and apply here.
