History The idea to hold and fund a Business Plan Competition in Odessa, TX originated with the Midland Economic Development Corporation hosting an event March October 2017. Information came directly from the West Texas Enterprise Center in Amarillo, who has been executing this type of event for 15 yrs. In the past 7 years SBDC: Assisted in opening 276 new businesses. Helped create 619 new jobs. Assisted startups and existing businesses to receive $68 million in financing. Spent 13,798 total hours assisting clients.
About the Challenge The objective of this program is to provide another source of capital funding to business owners and entrepreneurs in Odessa who may not be able to obtain the funding otherwise. The value of going through the business plan process is that participants will gain a better understanding of how to develop, build and grow strong businesses which will even further strengthen Odessa s economic condition and development. View the process as a boot camp that puts you through a business night school equivalent.
The funding will be provided by the Odessa Development Corporation. Business plan coaching will be provided by the SBDC. - FY 2018 - $350,000 / 4 or 7 businesses = $50,000 to $75,000 - FY 2019 - $500,000 / 5 to 10 businesses = $50,000 or $100,000
Who Can Participate? Must be a primary business Must be headquartered in the city of Odessa with a physical address. You must document that at least 50% of company s sales are from outside the Odessa area by 3 rd year of operation. A for profit business that exports its products or services outside the Odessa area, thus bringing NEW money into the economy.
Guidelines Clients must have acceptable credit & must agree to a credit authorization. (if business plan includes bank financing) Recipients must agree not to relocate the business within 4 years of receiving funds. Award recipients must provide economic impact data annually for the life of the business and sign grant contract. Clients cannot be an immediate relative of administrative officials or judges.
Guidelines The Grant money is free for use of your business under these conditions: 1. If your business is growing and meeting or exceeding the financial goals set in business plan. 2. All itemized receipts are turned in on the money awarded 3. Financial data, balance sheet, and profit and loss statements are turned in on time. 4. All other conditions are met per previous slides
Guidelines The Grant money will become a loan if : (but not limited to) 1. You do not have official and specific itemized receipts turned in on time. 2. You use the money for anything other than listed on your business plan. Eg: payoff car, house, etc Give as a personal loan, taken by Gov. for back taxes. Decide to start a different business. Decide to become a non-profit. 3. Go bankrupt 4. Sell before 4 years. 5. Do not create outside revenue
Economic Impact - Example Economic Impact Information Company: Number of Employees Full-time Part-time (number of W2 employees only not 1099 contract labor) Total Payroll (W2 salaries only-do not include payroll taxes, employee benefits or contract labor) Total Sales (Total gross revenues for the time period) New Loans (New Loans advances for the time period-not the loan balances) New Equity ( New equity contributions for the time period- not the net worth of the company)
Unacceptable Credit (For those seeking bank financing in addition to prize money) Bankruptcy Foreclosure Repossession Chronic Slow Pay Unpaid Collections Tax Lien Judgments
Application Application: must become a client of the SBDC by completing 641 SBA form. Nov. 6 th at Fact Sheet Seminar complete Application and pay $150
Qualification Process All document templates will be found on our website, all completed documents will be turned in using our drop box Website: www.odessabusinesschallenge.com Must do your own checking on Permits, Licenses, Zoning laws. Know your Field!! (we have a resource sheet)
Coaching Process Group Coaching Must Be Attended Attend all seminars Additional one on one coaching available with appointment For the Businesses Plan to be accepted, in office appointments must be fulfilled. Please reserve early, there are many more contestants than consultants.
Advancement Process Your documents are judged by a panel of independent judges looking for set criteria to score Three rounds of Elimination: Fact sheet, Business Plan, Pitch. Finalists will be selected on February 21 st Presentations will be on Monday, March 5th Checks awarded at the Annual Awards Ceremony on Monday, March 19th
Judges Five independent judges will read and score the Investor Fact Sheets to determine who will move on to the next round. In the final round the judges will read, score and choose which business plans move on to presentation day. Once they have heard each finalist present their business idea, the judges will determine who will win a share of $350,000.
What it looks like put together
Lean Canvas Your Business Model
Investor Fact Sheet Your Business Fact Sheet
Example
Judging Criteria Investor Fact Sheet Scoring Viability 20 Team and Partners 15 Financial 10 Growth 15 Go-to-market Strategy 15 Competition 10 Advancement 15 Total: 100 pts
Your Business Plan
MEDC
Second Judging Criteria Business Plan Scoring Investor Fact Sheet 5 The Business 15 The Product and/or Services 20 Marketing 25 Management 20 New Job Creation 5 New Revenue for Region 5 Appendix 5 Total: 100 pts
Final Judging Go Live Business Pitch
Judging Criteria Oral Presentation Scoring Effective communication of business plan, validation of funding request and support for job creation 20 Judges questions are answered thoroughly and effectively 20 Knowledge, expertise and ability of entrepreneur 20 Commercial viability of the venture 20 Overall effectiveness and quality of presentation 20 Total: 100 pts
Best Practices Making your business plan the best it can be
Best Practices Turn in everything on time Nov. 6th, 2017 - Application Deadline - $150 Fee Nov 27th, 2017 Investor Fact Sheet Deadline To determine top 13 Jan 18th, 2018 Business Plan Deadline Set mandatory consulting appointments early Use the free services provided by the SBDC to prepare the business plan 432.552.2455 www.odessabusinesschallenge.com
Best Practices Attend seminar sessions Oct 30 th (optional), Nov. 6 th and Dec. 4 th &11 th, Feb. 20th Follow us on Facebook and check our website frequently. Remember: biggest hurdles for judges o Marketing activities with no strategic focus (i.e. website launch and take orders) o No competitive analysis o Unrealistic sales expectations o Financials that appear to be pulled out of the air o Lack of job creation detail
Best Practices Fully justify the request by providing concrete evidence that shows how, the business plan can be executed with the investment amount. Don t focus on the contest; focus on creating a realistic business plan that becomes a road map for success.
Maggie Walker- Nelson: (432)552-2455 Enrique Romero For more information please check website often odessabusinesschallenge.com