The Unexpected Pros And Cons of Business Competitions

PRO: Free money to get your business started.

If you win, you could be awarded over $100,000 in cash and/or prizes that you can use to build, hire, and get your startup off the ground. In most cases, there are no strings attached and you don't have to give up a percentage share of your business equity. Be careful, though, because some competitions don't award any cash at all, just services, and you have no choice in service providers.

PRO: You can make the most of new contacts.

The chance at winning big bucks isn't the only reason to compete in a business plan or venture competition. In many contests, especially those sponsored by business schools, judges and other competition organizers reach out individually to applicant companies both during and after the evaluation stage. That process can often help entrepreneurs establish new contacts and mentors to help grow the business...