Business Plan Contest
2007 - 2008
Official Contestant Kit
Princeton
Entrepreneurship
Club
http://tigerlaunch.blogspot.com
www.princeton.edu/eclub
TABLE OF CONTENTS
Entry Guidelines 4
Contest Schedule 5
November 27, 2007 – 5pm Entry Form/Executive Summary Due
December, 2007 ‘How-To’ Strategy Sessions
January, 25, 2008 Business Plan Checkpoint
February, 2008 Workshop
February 9, 2005 – Sunday – 5pm Final Business Plan Due
February 23, 2008 – Saturday – 9am Super Saturday
Other Contest Details 7
Useful Resources 8
Entry Form 9
The focus of the Business Plan Contest is to provide an integrative learning opportunity. Students gain practical experience by writing a plan for a new business venture and presenting and discussing it with judges including venture capitalists, investment bankers, and entrepreneurs. This year the contest will award a total of $10,000 in cash to the student teams that submit business plans with the greatest promise. If three or more finalists’ plans are environmental or alternative energy proposals, they will be eligible to win a separate prize of $5,000. The prize money is intended to catalyze further development and commercialization of the team’s idea. While it is hoped that business plans developed for the Princeton Business Plan Contest will reflect real opportunities, there is no obligation for the winners to implement their business plans.
The Contest has three prime objectives:
1. To educate students in the process of creating and evaluating new business ventures
2. To prepare students for opportunities in entrepreneurship sometime during their careers
To harness for the benefit of Princeton students the unique technical and business resources that the greater Princeton community has to offer.
The following pages outline the Contest guidelines, including specifics about entry requirements and available resources. It will be an exciting, challenging, and rewarding experience. We look forward to reading your business plans and hope that the experience will play a part in the success of any entrepreneurial venture you may be involved with during your career!
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Contact Information
Contest Directors Selcuk Arkun darkun@princeton.edu 609-651-7988
Sar Medoff smedoff@princeton.edu 336-253-4730
Entrepreneurship Club Joseph Perla http://jperla.com/email 305-951-1381
President
Faculty Advisor Bob Monsour bmonsour@princeton.edu 8-7221
ENTRY GUIDELINES
These basic requirements must be met in order to enter the competition:
Teams must consist of at least one Princeton University undergraduate or graduate student. Only the Princeton University students on a team will be permitted to receive monetary awards and present during the Business Plan Workshop and Super Saturday. It is encouraged that teams consist of 2 to 4 people, but there is no minimum or maximum.
An idea that plans to create value through ‘synergy’ or ‘better management’ of an existing company is an unacceptable submission. The contest is designed to provide participants with a realistic experience in entrepreneurial endeavors, and therefore ideas will be evaluated based on their likely success in the current market. The following are valid ideas:
the invention of a new market or market segment through a completely new idea
a plan with a significant acquisition component that thoroughly explains how the reorganization of an existing business is an improvement
an ‘intrapreneurial’ opportunity in which an innovative strategy greatly changes a current industry
new non-profit enterprises
Significant contributions from individuals outside of a business plan’s team must be recognized in the team’s business plan. While the Contest is an extra-curricular activity, and therefore not subject to the guidelines of the Princeton University Honor Code, we expect submissions to conform to its general principles. Therefore, unrecognized contributions from a third party may be grounds for disqualification.
Keep in mind also that if you don’t have an idea for a business plan, you can still be a part of the event. Students can help on an ‘as available’ basis and need not worry about long-term commitments. If you’re interested in entering and are alone or do not have a business plan idea, we can try to match you with other team members, or make some suggestions. Contact Selcuk Arkun ’10 (darkun@princeton.edu) or Sar Medoff ’10 (smedoff@princeton.edu), the Contest Directors, or Joseph Perla ’09 (jperla@princeton.edu), the President of the club.
CONTEST SCHEDULE
Entry Form / Executive Summary Submission (see attached):
November 27, 2007 by 5 pm
The entry submission provides basic information required for entry. There are three general parts:
Concept: description of business idea
Market Overview: brief discussion of the intended market, identification of key customers and the ‘value proposition’ to them, and description of barriers to entry and achieving sustainable growth
Required Resources: description of the key resources, such as the people, technologies, arrangements with other companies, and funding required
Forms are due November 27, 2007 by 5 pm. to 43 Little Hall or 303 Blair Hall. Emails to the Directors are also accepted. Submissions will be accepted on a rolling basis and an e-mail will be sent to the designated team member confirming receipt of your entry. Within a week we will be pairing groups mentors.
‘How-To’ Strategy Session: (Tentatively) December 4-17
This session will feature an expert in the areas of Business Plan writing, financing and alternative to venture capital, marketing, and management. They will be open to the entire club and should be informative not only for those entering the contest but anyone generally interested in business. It is not mandatory, but it is recommended that each team tries to make it if possible. More information will be available via email when dates and speakers have been confirmed.
Business Plan Workshop: January 2008
All teams will present their business plan to a panel of entrepreneurs, venture capitalists, and investors. The workshop is focused on giving advice and feedback on the business plan and its presentation, placing you in a better position for the Super Saturday competition.
Business Plan Checkpoint: January 20-25, 2008
During this week the Directors will check with groups on progress of their business plans
The plans generally include:
quarterly financial projections for two years and annual projections for at least three years with both a pro forma cash flow and budget analysis
other analysis, as appropriate (break even analysis, estimated market share calculations, etc)
a working model or prototype, if possible
market data, including size, trends, and competitors, based on consumer research and customer response analysis
resumes for each team member and their position within the venture should it be founded
Remember that the ‘how to’ sessions will go over the components of a good business plan and you will also receive support from alumni at the workshop. This is not your final submission, but the more work you put into it, the more you will gain at the workshop.
Final Business Plan Submission: February 9, 2008 by 5pm
This is your revised business plan. As for the first draft, submissions must be on 8.5 x 11 paper and may not exceed 30 pages of text, graphs, and appendices (does not include PowerPoint slides). Please submit 12 copies for distribution to the judges. No changes or revisions may be made to business plans after this date.
SUPER SATURDAY: Saturday February 23, 2008
All teams will make a 3 minute pitch to a panel of judges, followed by break-out sessions in which each team will be reviewed and questioned by a group of judges. Judges will pick the top three to five teams, who will then present a more detailed version of their business plan, and prizes will be awarded at the end of the day.
OTHER CONTEST DETAILS
Prizes: The total value of prizes in the Business Plan Contest is $10,000.
$5,000 (cash – taxable) for 1st place
$3,000 (cash – taxable) for 2nd place
$2,000 (cash – taxable) for 3rd place
Checks can only be written to Princeton students, and we must have your social security number before a check is made out (for tax purposes). Each winning team will have the sole responsibility for deciding how to allocate or otherwise use its prize proceeds; the organizers of the Contest will not become involved, either voluntarily or by request.
Judges: Contest judges will be drawn from a variety of backgrounds, including venture capital, law, accounting, entrepreneurship, and academia. Many judges are Princeton alumni or live in the area.
Judging Criteria: Judges will be asked to evaluate the plans based upon their likelihood of actually becoming the basis of a viable business, or, in the case of an intrapreneurial venture, the likelihood of making a meaningful contribution to the existing business. This consideration will include such factors as the degree of creativity and innovation embodied in the basic opportunity definition and business concept, the appropriateness of the strategy for exploiting the opportunity, the reasonableness of the plan for financing the business, and the team’s ability to actually implement the plan. Judges will make further distinctions based upon the potential of the business to create value, although they will be explicitly instructed not to use the typically very high venture capitalist’s hurdle for the absolute scale of the business. We wish to preserve the opportunity for a small scale, “boot-strapped” venture, which might not require much capital, and thus, would typically be uninteresting to a traditional venture fund.
Confidentiality: The Princeton Business Plan Contest is conducted in the spirit of the Honor Code and all measures will be taken to ensure the protection of intellectual property introduced and associated with the Contest, but neither Princeton University nor the organizers of the Contest will be responsible for confidential material. Protection of intellectual property and other rights of the contestants is ultimately the responsibility of each Contestant. Please mark the appropriate parts or entire business plan as “CONFIDENTIAL” as necessary. Every effort will be made to preserve the confidentiality of all submissions, but it is suggested that highly sensitive material be excluded from the entry if a team is concerned about the confidentiality of that material. Please note as well that the presentations will be open to the public, and a team may not want to present any confidential materials. Technical drawings and formulae need not be shown at this presentation, or even included in the business plan.
USEFUL RESOURCES
Online:
Mentorsphere – http://www.mentorsphere.com
An online site to connect contestants with mentors and experts around the world to receive input on their ideas and plans.
Small Business Administration – http://www.sbaonline.sba.gov/
Information on legal issues, business planning, software, and other resources.
Developing Your Business Plan Workshop
This page from the Small Business Administration contains a basic step-by-step approach to writing a business plan.
Business Resource for High-Tech Professionals http://www.ftponline.com/channels/business/
Upside provides access to other business resources on the net and utilizes a provocative style that has made it a must read for thousands of high-tech execs around the world.
High-Tech and IPO Info – http://www.herring.com
This page from the periodical Red Herring provides directories, resources and news and analysis on high-tech and entrepreneurial happenings.
Business Essentials Library – Palo Alto Software – http://www.paloalto.com/
PAS produces business planning software. There are several sample business plans available as well as tips, planning outlines, and other information.
Entrepreneur Magazine – http://www.entrepreneur.com
Books and Periodicals:
Baird, Engineering Your Startup: A Guide for the Hi-Tech Entrepreneur ISBN: 0-912045-48-5
Merrill, Raising Money: Venture funding and how to get it. AMA 1990
Nesheim, High Tech Startup: The Complete How-To Handbook for Creating Successful New High Tech Companies, ISBN: 0-914405-71-3
Roberts, Entrepreneurs in High Technology: Lessons from MIT and Beyond, Oxford, 1991
Timmons, New Venture Creation: Entrepreneurship for the 21st century, 4th ed. Irwin, 1994
Venture Capital Journal, Entrepreneurship Theory and Practice, and, also available in both print and online editions, Red Herring, Upside, The Industry Standard, Business 2.0.
TigerLaunch
Princeton Business Plan Contest
2007 - 2008
Entry Form
TEAM MEMBERS First name listed will be “single point of contact” for communications
Name Address Phone Email
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Concept Description
I. BRIEF SUMMARY 2-3 sentence description of your idea for organizational purposes
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Would your concept be classified as an environmental or alternative energy venture? ___Y ___N
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I. MARKET OVERVIEW In a few sentences, discuss the market, key customers, value proposition (how much additional value your product/service will add to the existing market), and barriers to entry of your business.
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III. REQUIRED RESOURCES Describe some of the resources that you think will be critical to your company’s success (e.g. people, technology, other businesses, etc.)
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All teams will be assigned an independent mentor who will be available to advise teams throughout TigerLaunch.
If you do not wish to be assigned a mentor please sign here ______________________
If you need more space, feel free to add an additional page (preferably typed).
Remember that this is only an entry form. We realize that at this preliminary stage it is difficult to provide exact information on your business, so just do your best to provide as clear a description as possible. Not being able to fully answer the questions should by no means deter you from entering the contest. All information in this packet is subject to change.
Due by Nov. 27, 5 pm to 43 Little Hall or 303 Blair Hall
Email (darkun@princeton.edu or smedoff@princeton.edu )