• Try too soon.

Sometimes there's just not enough time for an entrant to learn what it takes to be a winning entrepreneur, Burton said.

"There were a couple of (companies) we looked at that probably were too early to be at this stage," he said. "They're a great company, and probably a couple more years, or maybe even just a year of proving their business model, is all they need."

Early success doesn't always merit EOY recognition, Burton said.

"Maybe they've had success so far, had success funding their companies, they've been able to develop a business plan," he said. "(But) following their business model and having success doesn't necessarily qualify them for this."

It's possible, too, that a company was simply competing in a crowded and generally excellent category, he said.

"There were something like 60 companies we got files on. To bring them down to the 25 finalists was extremely difficult," Burton said. "When we got down to it, maybe their category was so strong this year that there was another company that maybe was around a little bit longer or did something more unique."

• Don't try at all.

But that's no reason to give up, Burton said. True entrepreneurs keep the faith, forging ahead with their dreams despite monumental obstacles.

"Some of the companies were obvious finalists because of their performance, because of the story of these individuals and what they have accomplished — many with very little resources but just sheer determination," he said.

This area is where checklist-type judging won't do, Burton said.

"You can't go dollar for dollar, necessarily," he said. "There are some great stories in there, and that had a little bit of an impact on us. The stories weren't the primary (criteria), necessarily, but when you weigh all the components together the stories can become more meaningful."

Staring down possible failure teaches an entrepreneur what she's made of, Lunceford said.

"You have to be able to handle constant, never-ending change," she said. "You have to go where the market is and not let it make you sick and lose sleep. Taking chances and being dynamic is part of what it takes to make it."

In the end, the real lesson might be an old chestnut: If at first you don't succeed, try, try again.

"Just because somebody doesn't win the award doesn't mean they're not a great business; they're all successful businesses," Lunceford said. "Just to be nominated shows they're doing something right."

Burton's company was a three-time finalist before winning last year, and he said he learned something each time.

"It wasn't based on one criteria," he said. "Some companies had very strong revenues but did not make it as finalists. My recommendation for them is to try again. Keep doing what you're doing, look at what you can do better and try again next year."

---

E-mail: skratz@desnews.com