One of the most important documents that any entrepreneur can write is a business plan because, when done well, it conveys his or her business goals and the strategies and tactics needed to achieve them.
Many people say that writing a business plan is one of the most difficult tasks they've ever undertaken. But they also agree that, when it's completed, the value that a written plan provides is immense. That's because developing the plan helps them think through many issues that they'll need to confront sooner or later. The Rhode Island Business Plan Competition is a good place to start.
The competition, an independent, nonprofit organization, is a unique consortium of 24 local private, public, nonprofit and government organizations that have come together to promote the development of new, scalable businesses in Rhode Island. Anyone may apply, no matter where they live, but they must agree to establish operations in Rhode Island, if they don't exist here already, should they win.
Now in its fourth year, the Rhode Island Business Plan Competition provides an opportunity to emerging, as well as established, entrepreneurs to win more than $60,000 in cash and in-kind services free and clear. A similar amount is available in a student track open to full-time undergraduate and graduate students.
Although this level of funding wouldn't be enough to a launch large-scale venture, it provides value in two fundamental ways.
First, there is the actual prize. Included in the mix of cash and services are legal, accounting and venture capital consulting services offered by the some of the top professional firms in Rhode Island. The high-value advice offered by these people alone makes it worth winning the competition.
Second, being named a winner or finalist raises the regard in which potential funders and advisers hold you, and can open doors. Most importantly, people want to be affiliated with winners – and that includes potential employees and prospective board members, as well as people in a position to refer you to customers.
Even if one isn't declared the winner, most applicants win just by having competed.
A plan needn't be long – in fact it shouldn't be more than 25 pages or so – but it needs to be tight, coherent and persuasive. All the pieces must fit together to tell an overall story. Pro-forma financial projections must make sense, even if, as is often the case, the future ultimately unfolds differently.
Pulling together the numbers and telling your story is a rigorous exercise that forces you to think through your business in ways that you likely otherwise wouldn't. When you finally get in front of prospective funders, you'll know your story inside and out. They'll understand this, and they'll have greater confidence in you as a result. Writing the plan helps you get there.
During the next few months, the Rhode Island Business Plan Competition is offering free workshops on writing a plan and presenting a plan.
These workshops are open to anyone, whether or not they ultimately apply to the competition. The idea is to help people build their business skills and also prepare for the competition.
The contest application deadline is April 2. Full information is available at www.ri-bizplan.com.
Garrett Hunter, co-chairman of the Rhode Island Business Plan Competition, is president of the Business Development Company of Rhode Island.
