The SBIR and STTR programs fund equity-free early-stage commercialization. This funding helps businesses meet global and U.S. national priorities through high-risk research. In other words:
- The funding is about developing urgent solutions rather than making maximum profit.
- Failing to meet an objective in Phase 1 is generally OK as long as you show how you’ll overcome that failure in Phase 2.
Even more so than in many grants, SBIR / STTR funding isn’t simply about demonstrating a novel proof-of-concept; you need to establish a new the “gold standard” for your line of work. A main difference between SBIR versus STTR is that the former allows a nonprofit entity such as a university to collaborate, whereas the latter requires it. General guidance is available, as is guidance from specific agencies such as the NIH SBIR program.
A common failing of SBIR / STTR grants is an insufficient commercialization plan. Accordingly, ensure that you conduct focused yet comprehensive market research. Here, we provide guidance on how to do so.
Establish your potential customers and competition
It’s essential to present a thoughtful overview of your competition and potential customers. You need specific, data-heavy assertions on possible market potential and revenue. Representative examples:
- Current market data, such as the demographic that’s most likely to buy your product as well as the current business environment
- Letters of support, such as a commitment to buy into your licensing agreement or sign up for software subscriptions
- Customer surveys, such as identification of areas in which your technology could best meet user needs compared with competing technologies
In other words, you’ll need to conduct plenty of boots-on-the-ground informational research. Hiring a marketing consultant could be a valuable investment but in itself is insufficient.
Market size isn’t important
It’s of course hugely transformational to propose a technology that reduces global carbon emissions by 20%. Yet because a global user base and grandiose outcomes aren’t necessary for SBIR / STTR grants, don’t exaggerate your market or possible results. If the initial trial market for your math education software is specific schools within your local school district, that’s fine. Because in your commercialization plan you’ve already established your potential customers and competition, along with a clear plan to stay financially afloat while you enter this market, your plan remains solid.
Stay on topic
My AP English teacher warned me that a surprisingly common reason why students bomb the AP exam essays is a failure to stay on topic. The same is true for the SBIR / STTR grant commercialization plan. Keep your focus on what the agency cares about. For example, the USDA funds 10 topic areas. A commercialization plan that’s focused on aquaculture is on-topic. An otherwise excellent write-up that instead at times veers into the utility of rubber deterioration inhibitors will probably score poorly, regardless of your work’s value.
Summary: Commercialization plan tips
The commercialization plan is commonly the weakest part of an SBIR / STTR grant. Your customers, competition, and market size must be specifically delineated; and at all times focused on the topic of agency interest. The agency’s program officer should basically become your friend; this person makes the final decision among a too-large pool of applications that the reviewers ranked highly. We also recommend that you collaborate with an experienced team to guide you through the essentials and give you the best chance of success, and read through guidance from ScienceDocs on selecting the NIH vs. NSF for your SBIR / STTR grant proposal.
It’s difficult to manage all of your partners’ efforts and timelines; administrative help may be a game-changer. We at ScienceDocs handle many SBIR / STTR projects, so feel free to reach out if you would like our grant writing and/or administrative support!
Keywords: SBIR, STTR grant, commercialization plan, market research, grant writing support, grant editor