Profile of a Good Candidate

Program Requirements

  • US Based, for-profit businesses only
  • SBA certified "small business"
  • Routinely uses technology or innovation in operations
  • SBIR participation is driven by a high-level champion
  • Experienced in preparing and submitting research proposals
  • Experienced and comfortable with email and the Internet

    • SBIR award winners typically exhibit many, if not all, of the following attributes. Some of these attributes are actually program requirements (presented in italics), while others are not. It cannot be stressed enough, however, that there are always exceptions. Many firms initially thought not to be good candidates have come through with stronger capabilities and resolve than was obvious in the beginning.

    • U.S.-based, for-profit businesses ... Only for-profit, U.S.-based companies are eligible for awards. Proposals may be submitted by individuals or groups of individuals prior to actually creating the company, but awards are made only to established business entities. The program's competitiveness will favor established businesses, as they can focus more attention on the project and less on creating the business.


    • "Small businesses" only ... Applicants must meet the U.S. Small Business Administration's definition of "small business," which varies among industries. CRITICAL: In determining "small business" status, the company's affiliates and subsidiaries must also be considered. Thus, if a company has a parent organization, or is itself the parent of one or more sub-companies, these additional entities must be considered in determining whether the candidate company qualifies as a "small business."


    • Individuals/companies who routinely use technology or seek innovative ways of doing things in their operations ... Generally, manufacturers and companies that produce something are better candidates for the SBIR program because of the value that increased efficiencies and product innovations can add to their operations. There are many exceptions, however - e.g., veterinarians; environmental consulting firms; teachers with innovative ideas; testing labs; physicians, nurses, and other healthcare professionals. The key is in the answers to three questions ... (1) Is the proposed idea truly innovative?; (2) Can a research project be built around it?; and (3) Does the applicant bring technical expertise to the proposed project?


    • Presence of a true CHAMPION ... Being the champion of an SBIR proposal means much more than being the one who comes up with the innovative idea. Instead, the champion is quickly recognized as the individual who has the authority and makes the commitment to pursue the program. Many potential candidates are excited to learn about the SBIR program, but the first thing they do is look around to see who might be available to prepare the proposal. This approach is an option, but it is not recommended, because the consultant or staff person assigned to the task seldom feels the same passion and commitment as the idea's author. Whether in a new sole proprietorship or a 10-year-old established manufacturing firm, it is critical for top management to commit company priorities and resources to the project.


    • Experience in preparing and writing research proposals ... Though not a requirement, SBIR applicants with experience in preparing and submitting proposals tend to be better candidates. The key exception is a company with a true champion on board - i.e., someone with the willingness and authority to tackle the learning curve required to prepare a good proposal and be fully responsive to the SBIR program.


    • Experience or commitment to learn use of e-mail and the Internet ... The SBIR program is moving toward exclusive use of electronic communications, with some agencies already releasing solicitations and receiving proposals solely through electronic means. Additionally, important components of a good SBIR proposal are the literature and background searches of related technologies/innovations, a process greatly facilitated by use of the Internet. Applicants inexperienced in the use of electronic communications or reluctant to learn its use are clearly at a disadvantage.


    • COMMITMENT to team building ... SBIR proposals must clearly explain in detail how the applicant intends to carry out its work plan. Because few truly small businesses have the in-house resources to perform all needed activities, applicants usually seek teaming partners. Ideally, these team members will be recognized experts in their fields of study. University faculty/researchers are particularly favored as teaming partners, but industry-based experts can also be used. In either case, rather than becoming formal "partners" in a business sense, they serve as consultants or subcontractors during the term of the proposed project. Proposals that fail to present a team approach are often downgraded by reviewers who are skeptical of the applicant's ability to carry out the proposed work plan.


    • Perception of SBIR as an opportunity, not as a sole funding source ... The SBIR program may be an excellent opportunity to obtain financial support for the research, development, and commercialization of innovative technology. However, the program is neither a quick nor a certain source of funds. As such, applicants are encouraged to regard SBIR funding as one of several potential funding resources, rather than the sole funding source for their business.

    SUMMARY

    The Small Business Innovation Research program represents an excellent source of non-repayable grant and contract funding to support small businesses' involvement in the federal government's research agenda. The program is highly competitive, and applicants must be prepared to commit significant effort and resources in order to compete successfully.

    Through the Montana Department of Commerce, applicants willing to make this commitment have access to personalized assistance that can make the difference between winning and losing an SBIR award. This assistance includes help in:

    • Determining whether and how to proceed with a proposal
    • Determining applicability for preliminary "Phase 0" support
    • Understanding and pursuing the complete SBIR competition process
    • Establishing and adhering to a schedule of multiple proposal reviews
    • Incorporating SBIR in the applicant's long-term business strategy

    FOR MORE INFORMATION

    Individuals interested in learning more about the SBIR program should contact:

    Ms. Linda Brander, Outreach Coordinator
    Small Business Innovation Research Program
    Montana Department of Commerce
    301 South Park Avenue
    P.O. Box 200505
    Helena, MT 59620-0505
    (406) 841-2749
    lbrander@mt.gov