Shark Tank-like business pitch competitions are popular than ever, and a great way for new entrepreneurs with innovative ideas to win capital for their companies, in the form of prizes ranging from $5,000 to as much as $200,000 or more. Returning for a fourth year is the Miller Lite Tap the Future pitch competition. The business plan competition is aimed at minority entrepreneurs and is sponsored by MillerCoors. Entrepreneurs get to compete for a $200,000 grand prize, including the opportunity to pitch their business plan live in front of FUBU Founder Daymond John of ABC’s “Shark Tank.” Black Enterprise’s own Editor-at-Large/Senior Vice President Alfred A. Edmond Jr. also serves as a national judge for the business plan competition.
[Related: 4 Mistakes Entrepreneurs Make When Pitching For Capital]
Miller Lite Tap the Future has awarded more than $1 million in funding over the last three years. Thousands enter each year, with one business crowned the top winner. The most recent grand prize winner is Brian Hill, founder of Edovo, a business that provides a self-driven educational and vocational platform to correctional institutions across the country.
“Miller Lite Tap the Future can open doors for aspiring entrepreneurs who want to take their business to the next level and are willing to put in the work to do so,” notes Daymond John in a statement. “I encourage entrepreneurs who are ready to get down to business and work hard to not pass up this opportunity.”
“Miller Lite Tap the Future not only provides the financial insights necessary to help grow businesses, but it also puts entrepreneurs in front of people who are well respected and know what it takes to succeed,” added Steve Canal, MillerCoors community affairs. “Miller Lite’s commitment to help entrepreneurs succeed is inspired by Frederick Miller, who created the original light beer by following his passion, staying true to himself and his vision and against all odds, not giving up.”
Entrepreneurs can submit applications to be entered into the three-phase contest through MLTaptheFuture.com. Some 30 semi-fin
alists will be selected to compete in live pitch events in Atlanta, Chicago, Houston, Los Angeles, Philadelphia and Miami during the month of July. Daymond John and a panel of experts will select one business in each city to win $20,000 and advance to the national finals. Six national finalists will present before a panel of judges in Chicago this September, where one team will win the $200,000 grand prize.What sets Tape The Future from other pitch events is that it is a business plan competition. So, entrepreneurs have to come prepared with their A+ game that goes beyond pitching an idea but being able to show on paper the viability of the business.
For a little bit of guidance, here are three things you should know about presenting a winning business plan.
1) Develop a viable revenue model. Having a great idea is great, but how are you going to make money? Within the business plan, the revenue model shouldn’t be indecipherable or a secret to you or those reading it. But what it should set out to do is reveal–in a clear, concise yet thorough, and realistic explanation–how you intend to maximize profitability in offering your products and/or services to your clients and/or customers. This may involve one or, over time, multiple revenue streams. Research plays a huge role in developing this portion of your plan. In determining the revenue model, you must know the following:
- Who your target audience is.
- How many of them actually exist.
- How you intend to reach them (if you even can).
- What the results will be for your business and for them.
- Revenue models that worked or failed for your competitors.
2) Get the financials right. There’s no getting around it, you are responsible for having accurate financial documents that offer a true snapshot of your company now and a rational, realistic look at how the company will look and produce over time. This is where the majority of mistakes are made. Some entrepreneurs either undermine the process or overestimate the result. From how much monies the company currently has on-hand to projected cash flow to budgeting for salaries, equipment and supplies needed, required travel or marketing and advertising, this and more must be included. The three basic financial statements are the Balance sheet, which shows firm’s assets, liabilities, and net worth on a stated date; Income statement (also called profit & loss account), which shows how the net income of the firm is arrived at over a stated period;Â and, Cash flow statement
, which shows the inflows and outflows of cash caused by the firm’s activities during a stated period.3) Determine the business’ scalability. Scalability refers to the ability of a successful company to grow while maintaining its successful processes and performance on a larger scale. The business must be structured for growth even as it scales back costs or resources. If your company isn’t growing, then it may not have what it takes to get to the next level. Companies reinvent themselves often, especially in times of crisis and strategic. Of course, you just have to be willing to see and tackle the inconceivable–that your business isn’t structured for optimal growth. What’s more, in finding a niche, reaching your customer and filling a need, what is the plan to make this cyclical? Is this plan replicable? A company operates efficiently when it is achieving three things: retaining old customers, attracting new customers, and, increasing value in products and services for current customers.