Starting Up: Business-Plan Contests

From smSmallBiz

BASKETBALL ISN'T THE only thing getting college students riled up this time of year.

Last March, Brad Chisum, a recent business-school graduate from San Diego State University and co-founder of Lumedyne Technologies, a company that operates a patented sensor technology, was in the throes of Rice University's business-plan competition in Houston. "The Rice competition was very intense," says Chisum, who with the help of teammate Nick Rhea presented his business three times over a three-day period alongside 35 other teams from top MBA programs around the world.

Despite not winning their first formal contest in Houston, Chisum and Rhea went on to compete in five more b-plan competitions, taking first prize in the prestigious Global Moot Corp. Competition, an international contest hosted by the University of Texas at Austin. In less than six months, the team won more than $200,000 in prizes, rang the opening bell at the Nasdaq Stock Market and wound up with a heap of exposure. "We were suddenly famous on campus," says Chisum.

Beyond potentially attracting publicity for their businesses, entrepreneurs like these competitions because they can develop and pitch their fledgling business ideas to real investors and get professional-grade feedback. They also stand to win cash prizes -- typically, ranging anywhere from $10,000 to $100,000 per competition