Ten Tips for Developing Successful SBIR/STTR Strategies

Author: Pat Dillion, UW-Extension - Wisconsin Entrepreneurs' Network 

With more than 15 years of experience in the federal arena through the “school of hard knocks” and consulting with many companies in the federal Small Business Innovation Research Program (SBIR) and its cousin, the Small Business Technology Transfer (STTR) Programs, I have learned a few things along the way that may be valuable to companies considering federal funding to support their innovative research and development (R&D) efforts.  It is vitally important to understand the federal government acquisition processes and systems; and then to develop strategies and tactics that will produce the kind of results you desire. 

Competing and winning federal R&D awards is a high-contact sport. Many businesses, both startup and existing, consider federal funding; however, navigating the federal R&D arena can be overwhelming and time consuming.  Although it can be challenging and fraught with landmines, successfully maneuvering the government R&D arena can be invaluable for those who learn the systems and the people. 

The federal R&D arena is a dynamic, ever-changing environment that requires persistence, tenacity and patience to be successful.  Researching the agencies, laboratories, systems and business processes can be overwhelming. These eight strategies and tactics can help businesses better navigate and understand the federal R&D arena before jumping in with both feet.   

  1. Make a strategic business decision to pursue federal R&D funding.  If you do things right from the very beginning, you will count your blessings later. Develop a plan and stick with it to increase your success.   Establish a sound financial management system.
  2. Do your homework and develop a plan.  Understand your scientific and technical strengths and weaknesses.  Start with a great idea/concept/project that has strong military or commercial potential.  Conduct a thorough scientific and technical review to assess the value of your idea/concept/project against the state-of-the-art.  Is your widget better, faster, cheaper?  What problem does it solve?  What is the significance of your idea/concept/project? 
  3. Get to know the customer.  Research and understand the federal agencies that have funded or intend to fund research in your scientific field.  Pick up the phone, send an email and talk to them to learn their needs and mission requirements. 
  4. Develop a realistic timeline for your efforts.   Navigating and tackling the federal R&D arena takes time and effort.  Be smart, savvy and strategic in all that you do.
  5. Get to know the people, or “press the flesh.”  Attend scientific symposiums and conferences; consult with university researchers to gain knowledge and access to  facilities, equipment and expertise that you will need for your project. Everyone wants to be a part of a winning team, so consult government, industry and academia to assemble the best team possible.
  6. Ensure there is a strong match or fit between your idea/concept/project and the federal agency and its research interests.  Too often, proposals are submitted blindly to the federal agency without any interaction between the company and the agency.  This is not a good strategy.  Go back to Tip 2, do your homework. 
  7. Leverage the resources in the state.   Wisconsin SBIR and STTR proposers are not alone.  Wisconsin has made important investments in many programs, services and talent to assist companies with their SBIR/STTR efforts.  Take advantage of these resources.  You’ll be glad that you did.
  8. Don’t go it alone.  Use other funding sources besides SBIR/STTR to fund your business and technology developments efforts.  Outside investments, purchase orders, letters of support are all important when pursuing SBIR and STTR funding.
  9. Know you commercialization strategy early on.  As with any business, knowing      your potential market opportunities and customers are vitally important to starting and growing your business - nothing happens until you sell something.   The same is true in SBIR and STTR, understanding the market and its opportunities is vitally important toward winning the second phase of funding and, possibly, sole source contracts in Phase III – Commercialization. 
  10. Don’t give up.   Persistence and tenacity is important.  The federal SBIR and STTR Programs are highly competitive programs, and if you don’t succeed the first time, try, try again!  With each try, you will gain invaluable knowledge and experience to become a better candidate for funding through the SBIR and STTR Programs. 

Competing and winning in the SBIR and STTR Programs has been done numerous times by many companies in Wisconsin.  These funding programs provide the financial investment through federal grants or contracts that are so critical to entrepreneurs and innovators in the state and the nation.  For those who persevere, ultimately reap the rewards for increased revenues, introduction of new products or services, patents/intellectual property and more.   These companies and their resulting technology commercialization efforts will have far reaching societal, economic and scientific impact in our economy and our lives.   On Wisconsin!