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A business plan is an essential element in getting funding for a new business. Entrepreneurs show their plans to venture capitalists, angel investors, banks, and even friends and family in the hopes of raising capital. But there’s one source of financing that most entrepreneurs neglect: business plan competitions.

Business plan competitions offer new entrepreneurs the chance to earn fame and startup capital. There are more than 50 business plan competitions in the United States, many of which offer startup capital to the winner.

The best known competition is Moot Corp, started in 1984 at the University of Texas by two MBA students who wanted a challenge similar to moot court in law school.

They envisioned a competition in which MBAs working in teams would conceive an idea for a new business, develop the idea into a written business plan, and present the plan to a panel of judges consisting of entrepreneurs, venture capitalists, accountants, lawyers and management consultants. Moot Corp soon expanded into a national and then international competition.

The contest with one of the biggest prizes is the $100,000 competition sponsored by the Massachusetts Institute of Technology. Other high-profile schools, including Harvard Business School, Duke University, University of Chicago and Wharton Business School, host competitions open to teams with at least one member that attends their institution.

Entrepreneurs