Eligibility

The competition is open to all faculty-sponsored, full-time and part-time undergraduate and graduate students enrolled at any of Arkansas's two or four year universities or colleges. The business plan must be for a seed, start-up or early stage venture and must address the entire business concept (including implementation). At least one team member must have a key role in the company's management team. Proposals for the buy-out or expansion of an existing company, tax-shelter opportunities, franchise, real estate syndications, and other consulting projects and analyses are not eligible. Teams comprised of at least one student enrolled in the graduate school should compete in the graduate competition (even if undergraduates are members of the team). Graduate students may compete if they graduated in December of the year prior to the date of the competition (example: a graduate student graduating in December 2009 may still be entered in the spring 2010 competition).

Judging

The Judging takes place in two parts.

Part 1 (February 22 - March 4, 2010): A panel of judges evaluate all written plans and select twelve undergraduate semifinalist teams and six graduate finalists beginning . Each entry is evaluated in whole by at least three judges.

Part 2A (April 8, 2010): Two new panels of five judges then evaluate the twelve undergraduate semi-finalist teams based upon an oral presentation by each team (20 minutes for presentation and fifteen minutes for a question-and-answer session) and selects the six finalist teams. After each presentation, each team will receive up to ten minutes of feedback from the judges.

Part 2B (April 9, 2010): Two new panels of five judges, one for the graduate track and one for the undergraduate track, will evaluate the finalist teams (six graduate and six undergraduate) based upon an oral presentation. This panel selects the first, second, and third place teams.

A separate panel of judges will review plans for the Innovation and Agriculture Awards. These finalists will make oral presentations to a panel of judges on Friday, April 9, 2010.

The judging is based both subjectively and objectively on the judging guidelines and the impressions formed by the business experiences of the judges. All judges ultimately consider the entire business concept looking at overall feasibility, combined with significant capital gains potential, attractive investment possibilities, and actual implementation. The most compelling business plan is one that effectively integrates all components of the plan, rather than simply forming a strong sum of parts.

Judging Guidelines for Business Plan (All Entrants)

1. Executive Summary (10 Points)
Clear, exciting, and effective as a stand-alone overview of the plan; includes brief description of each succeeding section of the plan; can be read in 5 minutes.

2. Company Overview (5 Points)
Presents a vision, history, current status, strategy, goals, mission and objectives for the business.

3. Products or Services (10 Points)
Describes the key features and benefits, current stage of development, proprietary position, and competitive advantages of the product or service.

4. Market and Competitive Analysis (10 Points)
Presents the growth trends and key driving forces of the industry; identifies the key characteristics and needs of the target market(s); assesses the competitive environment; demonstrates market acceptance for the product or service.

5. Management Team (5 Points)
Backgrounds and roles of key individuals; history and ability to work as an effective team; personnel needs; organizational structure.

6. Operating Strategies (10 Points)
Addresses the marketing, production, research and development, personnel, administrative, and financial strategies for the proposed firm.

7. Critical Risks (10 Points)
Realistically identifies the major internal and external critical risks that could threaten the business and presents viable contingency plans to address these issues.

8. Cash Flow Statement (10 Points)
Presents a realistic assessment of cash requirements -inflows and outflows- over a projected 5-year period; cash flows are consistent with operating and marketing strategies outlined in the body of the plan; cash flow information is detailed for first 2 years, quarterly/annually for years 3-5.

9. Income Statement (10 Points)
Demonstrates realistic and attractive income potential of the business; the income statement is consistent with the operating and marketing strategies outlined in the body of the plan; income statement information is detailed for first 2 years, quarterly/annually for years 3-5.

10. Balance Sheet (10 Points)
Presents a realistic assessment of the working capital and fixed asset requirements of the business; appropriately reflects the projected capital structure of the business (long term debt and equity positions); balance sheet information is projected annually for 5 years.

11. Funds Required/Used (5 Points)
Clear and concise presentation of amount, timing, type and use of funds required for venture.

12. Offering (5 Points)
Clearly articulates the proposal/terms to investors; identifies what entrepreneur is seeking from investors; states how much equity will be given up in `return` for investment capital; presents a realistic assessment of ROI potential; presents an appropriate deal structure and possible exit scenarios.

Juding Guidelines for Oral Presentation (Advancing Teams Only)

1. Overall Organization (10 Points)
Materials presented in clear, logical order and/or sequence.

2. Interdisciplinary Team (5 Points)
Team member(s) enrolled in majors in more than one college in the university.

3. Ability to Engage Judges (10 Points)
The pace and content of the presentation is appropriate for an investment audience, the judges' questions are answered clearly and concisely.

4. Quality of Written Plan (15 Points)
Written and oral presentations are consistent. Written plan supports assertions in the oral presentation. Written plan communicates business concept as a stand-alone document, and stimulates potential investor attention.

5. Quality of Visual Aids (10 Points)
Clear, interesting visual aids that help explain the business ideas and concepts. May bring sample products, but no food drink or promotional give-aways may be given to the judges.

6. Market Opportunity (10 Points)
Clear market need presented, as well as a way to take advantage of that need. Meaningful examples and practical applications.

7. Distinctive Competence (10 Points)
The company provides something novel and/or unique that gives it a competitive advantage.

8. Management Capability (10 Points)
The team can effectively develop this company and handle the risks associated with the venture.

9. Financial Understanding (10 Points)
The team has a solid understanding of the financial requirements of the business.

10. Investment Potential (10 Points)
The business represents an investment opportunity in which one would consider investing.

Official Rules and Submission Requirements

1. The competition is open to all faculty-sponsored full and part-time degree or certificate-seeking undergraduate and graduate students enrolled at any of Arkansas's two or four year universities or colleges. Enrollment includes classes taken during the summer session(s) of the year preceding the entry deadline, the fall semester preceding the contest deadline, and the spring semester during which the contest takes place. We rely on the student and his or her faculty advisor to verify enrollment criteria.

2. The business plan may be prepared under faculty supervision for credit in a regularly scheduled course or as an independent study. The plan may also be prepared under faculty supervision with no official credit.

3. All students wishing to compete in the 2010 Governor's Cup competition must submit an "Intent-to-Compete" by registering here by 5pm on Friday, February 5, 2010.

4. To enter the Agriculture award, the team registrant must 1)check the box marked "Agriculture" and 2)submit a brief explanation (50 words maximum) of why your business plan can be categorized as Agriculture.

5. To enter the Innovation award, the team registrant must 1)check the box marked "Innovation" and 2)submit a brief explanation (50 words maximum) of why your business plan can be categorized as Innovative.

6. Each team may submit only one business plan to the competition.

7. Either an individual or a group may develop the business plan. Group size cannot exceed 6 persons. The management team outlined in the plan will contain the names of individuals (if any) who are not associated with the university. Presenting group members must be students and have a key role on the company's management team (i.e. CEO, COO, VP, etc...). Non-student members of the venture's management team may not participate in any presentations, including the finals.

8. Teams are encouraged to have graduate and undergraduate students work together on teams for the purpose of cross-pollination of experience and mentoring opportunities.Teams with any one member enrolled in graduate school during the academic year should enter in the graduate competition.

9. The business plan must represent the original work of each contestant. Each submission indicates that the business plan is the original work of the author(s).

The author(s) will retain all rights to the plan regarding its use at all times prior to and following the competition (except as stated below). Due to the nature of the competition, we will not ask judges, reviewers, sponsors, staff or the audience to agree to or sign non-disclosure statements for any participant.

By participating in the competition, entrants agree that neither the Arkansas Economic Acceleration Foundation (AEAF), The Arkansas Capital Corporation Group (ACCG), nor members of the judging panel, sponsors nor their designate organizations, assume any liability whatsoever for any disclosures of business plan information which may be made (whether inadvertently or otherwise) by any judge, reviewer, staff member, audience member or other individual connected with, participating in, viewing, hearing, or receiving information from the competition.

10. The business plan must be for a seed or start-up venture and must address the entire business concept (including implementation). Proposals for the buy-out or expansion of an existing company, tax-shelter opportunities, real estate syndications, and other consulting projects or analyses are not eligible.

11. The business should not have generated sales revenues prior to the Competition. Revenue generated during a test-marketing project may be excluded from this provision.

12. The business may license technology from another company for manufacturing and/or distribution purposes. Revenue streams from the business should not be based solely on deriving revenues from the licensing of its own technologies.

13. The plans may not contain fabricated information about (but not limited to) the following: backgrounds, experience and educational level of members of the management team, stage of product development, product performance claims, or market survey results.

14. Plans are limited to 30 pages of typed text, which includes the Executive Summary and excludes appendices. Cover sheets are not counted in total number of pages.

15. Summary financial data should include a five year pro-forma cash flow statement, income statement and balance sheet. Include an explanation to investors of how much capital will be required in the first and future rounds of investment, how funds from the first round will be used, and what milestones will be met using first round of funding. Delineate possible exit strategies and identify companies or categories of companies for which this company might be an attractive acquisition candidate in future years. Business plans may include the expected ROI for investors and the proposed structure of the deal, i.e., loan, preferred A stock, convertible note, etc.

16. Appendices should be included only when they support the findings, statements and observations in the plan. Because of the number of teams/plans entering the competition, reviewers and judges may not be able to read all of the material in the appendices. Therefore, the text portion of the plan (30 pages) must contain all pertinent information in a clear and concise manner.

17. For ease in handling, plans are required to be professionally bound (i.e. velo, spiral, tape, etc.). No 3-ring binders will be accepted.

18. Eight (8) copies of the business plan are to be received by AEAF at the address below by 5:00 p.m. on Friday, February 19, 2010. Semifinalists and finalists will be required to submit an additional ten (8) copies of the business plan.

OFFICIAL MAILING AND/OR DELIVERY ADDRESS:
Arkansas Economic Acceleration Foundation
200 South Commerce Street, Suite 400
Little Rock, Arkansas 72201-1728
Attn: Kerri Daniels

If the team checked Agriculture they will need to add 5 additional copies (13 copies total).
If the team checked Innovation they will need to add 5 additional copies (13 copies total).
If the team checked Agriculture and Innovation they will need to mail 10 additional copies (18 copies total).

19. For semi-finalist and finalist presentations in Little Rock, each team will be given twenty (20) minutes to present their business plan followed by a fifteen (15) minute question-and-answer session between the presenting team and the panel of judges. After competing, each team will receive a ten (10) minute feedback round from the semifinal and final judges. Each presenting team will have ten (10) minutes prior to its presentation for set-up/preparation and five (5) minutes after the presentation for equipment dismantling.

20. A team may not observe other presentations or question and answer sessions until after they have presented their own plan.

21. All oral presentations and question and answer sessions are open to the public at large. Further, it is likely that any or all of these public sessions will be broadcasted to interested persons through media, which may include radio, television and the Internet. Any data or information discussed or divulged in public sessions by entrants should be considered information that will likely enter the public realm, and entrants should not assume any right of confidentiality in any data or information discussed, divulged or presented in these sessions. Neither the Arkansas Economic Acceleration Foundation, The Arkansas Capital Corporation Group, judges, sponsors, nor their designate organizations, assume any duty to screen or otherwise control the identity of those attending, viewing or hearing all or part of these public sessions, and entrants agree that by entering the com
petition they have been made aware that such attendees, viewers and recipients may include members of the media and potential competitors in addition to members of the financial community, students and faculty.

22. Student entrants agree to allow the Arkansas Economic Acceleration Foundation and The Arkansas Capital Corporation Group to videotape the oral presentations and the question-and-answer sessions. By participating in the competition, student entrants agree to grant the Arkansas Economic Acceleration Foundation and The Arkansas Capital Corporation Group and/or organizations designated by them the unlimited right to videotape, photograph, audiotape, transcribe or otherwise record all public sessions of the competition, including but not limited to oral presentations and question-and-answer sessions. All entrants agree that the Arkansas Economic Acceleration Foundation and The Arkansas Capital Corporation Group and/or their designate organizations may use any such transcriptions and/or recording(s) (in whole or part) for such publicity and marketing purposes as their organizations may see fit, including those which may result in remuneration.

23. Oral presentations will be made at the Peabody Hotel, 200 West Markham in Little Rock, AR. The facilities include sound, projector, projection screen, and a computer running Windows XP operating system and Microsoft Office 2003 products. Please contact Tonya Brown (501.374.9247) for official presentation guidelines.

24. Team members are not allowed to bring food or beverages into the rooms for presentation. Students may bring product samples for their presentations, but may not bring any promotional items or give-aways to the judges. Paper materials for the judges are allowed, but not required.

25. The First, Second, and Third Place, in addition, to the Innovation and Agriculture Award winning teams will be announced at the Awards Banquet.