And the winner is ... Entering a contest can reward your business with much-needed prize money and positive publicity.(Henderson-Townsend, CEO of Mannequin Madness Inc.)

Traditional marketing methods such as advertising, direct marl, and telemarketing are frequently used in a small business' arsenal. But savvy entrepreneurs such as Judi Henderson-Townsend, CEO of Mannequin Madness Inc. in Oakland, California, also include business contests and competitions on that list. While Henderson-Townsend was surviving a five-month elimination process to reach the finalist stage of a national business contest, her company was already reaping rewards.

"I try to enter one contest a year," explains Henderson-Townsend, not only for the potential prizes but as a tool for regularly reviewing the performance of her business. One of her latest entries, …