SBA Handbook for SBIR Proposal Preparation
Chapter I - Using the SBIR Program to Further Business Development
B. Integrating SBIR-related Efforts Into Your Overall Business Strategy
Good business strategy is guided by a simple maxim: Know your own business. Small firms may waste time and money chasing after federal R&D funds which are outside of their business plans and strategy or capability. Submitting an R&D proposal can be a costly exercise for a small firm. You must know what it is you want to accomplish. You must have the R&D staff and capabilities to do the work.
If you are willing to commit time and funds to R&D, and you know your market well enough to know what kinds of innovations will mean growth and profits, SBIR programs are an excellent way to get the seed money to do the advanced R&D often necessary to enter into new projects.
We recommend that firms interested in the SBIR program start by drawing up a business plan. Not only can such a plan help you decide what SBIR program you want to compete in, it also provides you with a document you can show venture capitalists and other potential investors. A good business plan can take a variety of forms, and should include at a minimum the following topics:
summary of what your company's objectives are and what business you are in;
description of the specific products and/or services that you are or will be providing;
description of the markets you are in or plan to compete in;
description of your competition and your advantages vis-a-vis the competition;
biographical information on the principals and key personnel;
purpose(s) for which you are seeking funds and an estimate of the funds you will receive;
financial statement which includes both the past few years (if any) and projections for the next three to seven years;
There are numerous sources of information on business plans. For example, many large accounting firms publish free brochures or pamphlets on how to write a business plan. Many universities and associated Small Business and Technology Development Centers include business planning assistance as part of their efforts to assist small high-technology firms. Developing a business plan will enable you to clarify your business strategy and focus on your strengths. Within this context, you can decide if SBIR monies or other R&D or private sector monies for that matter - are worth pursuing.
