On Thursday morning I am going to sit down and talk about the GRA/TAG Business Launch Competition at the ATDC/TAG Entrepreneurs Society Meeting.  With the kickoff of that and the Georgia Tech College of Management Business Plan Competition "Moving an Idea into a Fundable Venture" event on January 20 it seems like we are starting to move into high gear of the competition race. 

Which of course begs the question, are business competitions good for entrepreneurs and startups?  The New York Times recently had an interesting article on the subject.  As someone who has been involved with these things from both the perspective of a participant and a judge here is my point of view.

First of all I agree with the times article that business competition might be focus a bit too much on telling a good story about their business as opposed to focusing on actually creating a business.  They also can steer the focus of a fledgling startup away from what it needs most.  Customers.

With that said these competitions are good for three reasons.

1. They are wonderful focusing events that require entrepreneurs to think about and do things that otherwise would not have a deadline.  If you enter, you have to get the business modeling, business plan, and presentations complete by specific dates.
2. If you make it into the deeper rounds buzz and exposure to investors are assured.
3. Most prize money comes with few strings attached.  Non-dilutive funding is very good and can set a startup up for an angel round.

So yes, business competitions are good for startups and the holiday season is behind us.  Time to strap in and go racing.