The Enterprise Center at Salem State College has expanded its annual Business Plan Competition to include the Merrimack Valley — and doubled the prize money to $10,000.
In its fourth year, the contest invites aspiring entrepreneurs to submit their business plan to a panel of judges, consisting of venture capitalists, local bankers, business owners and Salem State administrators. The competition is much like the TV show "American Inventor" — without George Foreman.
This spring, Salem State has teamed up with the Merrimack Valley Venture Forum and Merrimack Valley Economic Development Council, said Christine Sullivan, executive director of the Enterprise Center.
The Salem News caught up with three previous winners to see where they are today.
SemiNex Inc.
Home office in Middleton, moved company to Wakefield (winner 2005)
Owner: David Bean
What the business does: Designs and manufactures lasers to remove acne and skin wrinkles.
What did you use the prize money for?
The prize money was used for parts development.
Is your business where you thought it would be by now?
Things always take longer and cost more money than you originally expect. We are probably a year or two behind. We have successfully gotten financing, so we are now a privately invested company. That is a big milestone for us.
How did the competition help you?
The biggest benefit was getting exposure to the investment community, exposure for what my company was doing, and it provided extra credibility for what we were doing. We were prototyping at the time.
Why is it important to have a business plan?
It forces you to think through all the mechanics to make your business successful. You have to look beyond the immediacy and look five years down the road. The main value is internal rather than for the external investors.
What has been your biggest challenge since winning the competition?
The biggest challenge has probably been raising the financing. That required a lot of networking and perseverance.
Speech Therapy Group
Beverly (2006 winner)
Owner: Melanie Giles
What does your business do?
We are a speech practice that specializes in communication disorders or swallowing disorders. We offer services to stroke patients, people with autism and people using feeding tubes.
What did you use the prize money for?
The money went toward growing the practice. I was in business for a year and a half before the competition. By the time of the competition, I had five full-time therapists; now we have 13.
Is your business where you thought it would be by now?
We are actually a little ahead of where I thought I would be. We just expanded in September 2007 to add 1,500 square feet and increase to six rooms instead of two.
Now we are fine-tuning our procedures to take on more insurance, especially Medicare.
How did the competition help you?
It got our name out there. We got a lot of new referrals after the competition.
What has been your biggest challenge since winning the competition?
Cash flow. Having enough to grow. It's hard because you don't want to grow too quickly, but you want to grow enough, so it is tough to keep that balance.
MOST Corp.
Salem (2007 winner)
Owner: Pavel Menn
What the business does: Builds machines and software to help jewelry makers create unique shapes out of gold.
What did you use the prize money for?
The prize money was used to buy materials and build prototypes.
Is your business where you thought it would be by now?
My business was in the early stages for some time. We were doing business on a part-time basis, in a garage developing products for consumers and engineers. We have recently rented space in the Enterprise Center and are working to move out of the garage and going full blast.
What has been your biggest challenge since winning the competition?
No challenges. We were basically able to do a lot of good things. In the future, I feel we will have no problem making money.
