NEW BUSINESS:Growing up can be hard at the best of times - and that's not just for children. Companies need to grow too, and to succeed requires investment writes Claire Shoesmith.

While finding someone to stump up cash for a stake in your business is nothing new - in fact it has recently become a feature of prime time television viewing courtesy of the BBC's Dragon's Den programme - it can often be harder than people think.

"There's a lot of money out there but there aren't a lot of investment-ready deals," says Gráinne Lennon, project manager of the All-Island Seedcorn Business competition, an initiative run by InterTradeIreland with the aim of uniting funding with prospective business opportunities.

The main problem, according to Lennon, is that a lot of young companies don't know how best to market their business to prospective investors. "What the Seedcorn competition does is give them the opportunity to perfect their pitch and win the support of an investor," she says.

Now in its fifth year, Seedcorn 2007 is offering a total of €280,000 in prize money for companies that can prove they have the ability to grow from a start-up to a fully-fledged operating business. And for those that fit the bill, there is also the added bonus of access to private equity experts, validation of their business plan and an increased awareness of their profile.

"For some companies it's all about getting the cash to continue running their business, but for others it's the additional benefits that prove the most useful," says Lennon.

This year the judges have inserted extra criteria to remove the misunderstanding that the competition is about writing a successful business plan. As a result, this time entrants need to have a cash requirement.

For companies entering the emerging international company category (for which the prize is €100,000), business ventures must be in existence for more than five years and have a private equity requirement of more than €300,000. Substantial sales targets are also required.

For the emerging company category (where the prize is €50,000), businesses must be in existence for less than three years and must have a private equity requirement in excess of €75,000, but less than €300,000.

Six regional prizes of €20,000 and one prize of €10,000, for the best venture stemming from university spinouts and platform programmes, will also be awarded.

The key thing for anyone considering entering the competition is to ensure they look at their business from the perspective of their target investor, says Maura Moore, private equity adviser with IntertradeIreland. "You will increase your chances of successfully raising seed and venture capital if you are properly prepared, focussed and armed with a good business plan," she says.

Another important thing is to ensure the business opportunity is fully researched, and for people to be determined to succeed and have some experience in that area, or at least in the concept. "Investors are attracted to entrepreneurs who demonstrate a dogged determination and a 'can do, must do' attitude and who are ambitious," says Moore. "The ambition of the founders or the management team is the basis for the company's growth."

And growth prospects are, according to Lennon, one of the keys to success in the competition. Last year's winner of the Belfast region, Aetopia, has recently announced a major contract win from International News & Media and the Belfast News Group, an achievement which follows a similar contract win from The Irish Times. Meanwhile Limerick-based ParkMagic, winner of last year's Munster final, has recently announced that its US subsidiary has signed a contract to implement a new mobile parking payment system in the city of Chicago.

Both not bad achievements for companies that were initially struggling to attract financing and in fact, according to Lennon, finalists from past Seedcorn competitions have raised a total of €44 million in new equity since topping their categories and many of the entrants have now developed into successful businesses.

Anyone interested in entering this year's competition must first register either online at www.intertradeireland.com/seedcorn or by filling out a form obtained from IntertradeIreland. The deadline for submitted business plans is 5pm on Friday, September 28th.