Learn the Plays That WIN We Know This Game © The SBIR Coach, 2007 1 Playing the SBIR Game to Win...

© The SBIR Coach, 2007

1

Learn the Plays That WIN

We Know This Game

Playing the SBIRGame to Win

Fred PattersonThe SBIR Coach

www.SBIRcoach.com

2007 ASBDC Conference Denver, Colorado September 18, 2007


2


We Know This Game

Today’s “Game Plan”

• Part 1 – Rules of the Game– The R&D Funding Challenge– SBIR Program Overview– Playing the SBIR Game– Overview of Strategies

• Part 2 – Strategies to Win Awards– The Structure of a Proposal– Understanding the Priorities– Building a Winning Team– Commercialization – the End Game


3


We Know This Game

The R&D Funding Challenge

• High-Risk Projects are tough to fund• Funding sources are demanding

– Banks insist on collateral and debt service – Investors want equity, “a voice”, and a

schedule of their profitable returns• Friends and Family • Angels• Venture Capitalists

..

x


4


We Know This Game

The Holy Grailof R&D Funding

• Willingness to fund high-risk projects• R&D capital without debt to service• An Investor who won’t take equity• Protection for Intellectual Property• Support for Commercialization• All of the above from one source

We’ve just described the basic characteristics of The SBIR Program!


5


We Know This Game

SBIR Program Overview

• Mission: Apply entrepreneurial spirit of small business to solve tough problems

• Matchmaking Federal R&D needs to small business capabilities

• Required planning for commercialization• The SBIR “set-aside” must be spent

annually by the largest Federal agencies


6


We Know This Game

Actually,It’s Two Programs

•SBIR (Small Business Innovation Research)

– Applicants are Small Businesses

•STTR (Small Business Technology Transfer)

– Applicants are Small Businesses in partnership with a Research Institution


7


We Know This Game

How Much Moneyis Available in FY 2007?

• SBIR – Approx. $2 Billion

– 2.5% of the R&D budget of the qualifying Federal Agencies.

• STTR – Approx. $250 Million

– 0.3% of the R&D Budget of the qualifying Federal Agencies


8


We Know This Game

The SBIR “Pie”

DODHHSNASADOENSFDHSUSDAEPADOCDOEdDOT

DOD

HHS

NASA

DOE

NSF

TOTAL FY 2007TOTAL FY 2007>$2¼ Billion>$2¼ Billion

Labeled Agencies also do STTRs


9


We Know This Game

Agency SBIR Differences

• Granting Agencies Investigator proposes

project approach Less-specified topics Assistance mechanism More flexibility

DOD HHS/NIHNASA DOEdEPA DOT DOC DHS

• Contracting Agencies Agency specifies the

project requirements Highly focused topics FAR-driven procurement More fiscal requirements

DOEd NSF DOE

USDA HHS/NIH


10


We Know This Game

SBIR ProgramApplicant Eligibility

• A small business (500 employees) owned by individuals (>50%) , US located, and independently operated

• Organized for making a profit• Principal researcher (The PI)

must be principally employed by the small business (or the research institution if STTR*)

* For most agencies


11


We Know This Game

A CompetitiveThree-Phase Program

• Phase I: Feasibility

• Phase II: Proof-of-Concept

• Phase III: Commercialization


12


We Know This Game Phase I

Conceptual Design

Awards are made averaging $100,000 for 6-12 months to

support the conceptual feasibility and design of the

solution using the technological approach of the proposer.


13


We Know This Game Phase II

Prototype Development

Awards averaging $750,000, for as many as two more years, expand the Phase I

design to “proof of concept” and evaluation of

commercialization potential.


14


We Know This Game Phase III

Commercialization

No SBIR set-aside funds support this phase.

During this period the developer moves the innovation from the

laboratory into “end use” in the marketplace.


15


We Know This Game The SBIR Coach’s

Baseball Metaphor

• Phase I– Class A (Bush Leagues)

• Phase II– Class AAA (Minor Leagues)

• Phase III– The Major Leagues


16


We Know This Game

Who Owns the Intellectual Property?

• The Applicant does!• Full rights are retained for

– Technical Data– Patentable Inventions

• But you have to take the appropriate measures to protect your IP or the Government can eventually take it over!


17


We Know This Game

SBIR Phase IDynamics

• Phase I Topics – “The RFP”

• Proposal preparation and submission

• Proposal review and evaluation

• Phase I project selection


18


We Know This Game

Proposal Topics

• The Agencies select the technical topics for their annual Solicitation

• Publish them on their web sites • Provide guidelines for proposal content

and submission• Manage the proposal collection process


19


We Know This Game

Proposal Preparation& Submission

• Companies match published topics to their technology – can they solve the stated problem?

• Proposals are written and submitted– 20-25 Pages maximum – follow the outline– Submission is electronic via the Web


20


We Know This Game Proposal Evaluation

• The Agencies review the proposals • Rate and Rank them according to:

– Degree of innovation – Technical merit – Credibility of the management team– Future market potential


21


We Know This Game SBIR Phase I Project

Selection Criteria

1. Agency needs (R&D priorities)2. Proposal reviewers’ opinions3. Amount of SBIR/STTR money available4. Deployability and/or Scientific Merit

On average 15% of Phase I proposals are funded


22


We Know This Game Phase II Dynamics

• Phase II proposals are submitted at the end of the Phase I work– Some agencies invite, others expect

• Only Phase I winners are eligible• Evaluation processes vary

On average 40% of Phase II proposals are funded


23


We Know This Game

SBIR/STTR Annual Opportunities

Agency SBIR STTR 2007 Due Dates

Dept of Defense X X Jan, Apr, Jul, Oct

HHS: NIH/FDA/CDC X X Many dates

NASA X X September

Dept of Energy X X December

Nat’l Science Foundation X X June, December

Homeland Security X February, August

USDA X August

EPA X May

Dept of Education X June

Dept of Commerce X January

Dept of Transportation X May


24


We Know This Game The SBIR Game

• There are actually 23 SBIR Programs• The “Golden Rule” applies

“We who have the gold make the rules!”

• There is no common rule-book• Funding decisions are subjective• There is no appeal worth trying• The payoffs are worth the effort


25


We Know This Game The Challenge

• The game is VERY competitive• The rules may be hard to interpret• Good proposals are hard to write• Funding decisions are subjective• The money doesn’t flow quickly• When you take Government

money you are subject to scrutiny and audits


26


We Know This Game The Good News

• It’s a relatively fair game• Phase I puts you in a “sole-source”

position for Phase III• IP is yours to keep• No strings on the money• SBIR funding provides leverage• The Government pays on time


27


We Know This Game The Rule Books

• Each Agency is unique– Different solicitation schedules– Different solicitation styles– Different funding levels– Different proposal outlines– Different evaluation processes– Different attitudes

• Find the Rules on their web-sites• IF YOU WANT TO PLAY IN THEIR

GAME – FOLLOW THEIR RULES!


28


We Know This Game Information is Key

to Playing the Game

• Keep aware of Agency interests• Cultivate your future customers• Watch solicitations for topics• Know the current “state of the art”• Seek collaboration partners• Scope out your competition


29


We Know This Game

• The SBA SBIR Website (www.sba.gov/sbir)

• The SBIR Web Portals

• Agency List-Servers

• National SBIR Conferences– Oct 29-Nov 1 in Richardson, TX

• The SBIR-Alerting Service (lyris.pnl.gov)

• Google, et.al.

Information Sources


30


We Know This Game

SBIR Web Portals

• SBIR announcements and news items• Links to all Agency websites• Solicitation schedules• Search Engines for all Agencies

– Open and closed topics– Grant and contract awards

• SBIR conf/workshop schedules• State newsletter links• Lots of other stuff


31


We Know This Game

SBIR Gateway (www.SBIRgateway.com)


32


We Know This Game

SBIR World (www.sbirworld.com)


33


We Know This Game

Strategies to WinSBIR Awards

• Customers• Technology• Team• Commercialization• Innovation


34


We Know This Game Customer Strategies

• Know your customer• Understand what he needs• Give him what he wants• Stay on his “radar screen”

“Pre-Solicitation Marketing”


35


We Know This Game Technology Strategies

• Have a strong technology base• Get an independent assessment• Guard your Intellectual Property• Use your IP as a leveraging tool• Propose technology that your

customers really want

“Field-of-Dreams” was a movie!


36


We Know This Game Team Strategies

• Strong credentials that will impress your customer– Technical and Scientific– Business and Managerial

• Full roster of appropriate players• A track record of success

Your customer is also your investor


37


We Know This Game

Commercialization Strategies

• Yes, you need a business plan!• The Agencies are measured on

how much commercialization money derives from SBIR funding

• They will pay a lot of attention to this, so you had better too!

Commercialization means “End Use”


38


We Know This Game

Innovation Strategies

• Innovation is a combination of cleverness and originality

• Know what your customer knows• Make sure that you’re “up first” • Tell your story with clarity and

conviction

Innovation may NOT be the most important factor


39


We Know This Game

Playing the SBIRGame to Win

(Part 1)


www.SBIRcoach.com


40


We Know This Game

Game Plan for Part 2 Strategies to Win Awards

• The Structure of a Proposal• Understanding the Priorities• Building a Winning Team• Commercialization – the End Game


41


We Know This Game

SBIR Proposal Framework

Significance

Problem

Solution

Approach

MarketCommercial

Potential (Phase III)

Tech. Objectives

Work Plan

Budget

Resources

TeamFacilities & Equip.

Purpose

Innovation

The Project

Capability

Courtesy of Robert E Berger, PhD


42


We Know This Game

Reviewers’ Evaluation Criteria

• Innovation• The Project’s Technical Merit• Your Capabilities• Commercialization Potential


43


We Know This Game

Innovation

Significance

Problem

Solution

Approach

MarketCommercial


Tech. Objectives

Work Plan

Budget

Resources


Purpose

Innovation

The Project

Capability


44


We Know This Game

Technical Merit

Significance

Problem

Solution

Approach

MarketCommercial


Tech. Objectives

Work Plan

Budget

Resources


Purpose

Innovation

The Project

Capability


45


We Know This Game

Capabilities

Significance

Problem

Solution

Approach

MarketCommercial


Tech. Objectives

Work Plan

Budget

Resources


Purpose

Innovation

The Project

Capability


46


We Know This Game

Commercialization

Significance

Problem

Solution

Approach

MarketCommercial


Tech. Objectives

Work Plan

Budget

Resources


Purpose

Innovation

The Project

Capability


47


We Know This Game

Understanding Priorities

1. Agency needs– Know their priorities– Ask them questions

2. Reviewers’ evaluations3. Funding limitations


48


We Know This Game

Agency Needs

Significance

Problem

Solution

Approach

MarketCommercial


Tech. Objectives

Work Plan

Budget

Resources


Purpose

Innovation

The Project

Capability


49


We Know This Game

Agency Information


50


We Know This Game

Building a Winning Team

• The PI is the key player• Lone Wolves are suspicious• Outside counsel shows maturity• Do you have commitments?


51


We Know This Game

Capabilities

Significance

Problem

Solution

Approach

MarketCommercial


Tech. Objectives

Work Plan

Budget

Resources


Purpose

Innovation

The Project

Capability


52


We Know This Game

Involvement of Others

• Consultants• Universities• Research Facilities• Suppliers• Subcontractors


53


We Know This Game

How Much of the Work Can Be Outsourced from Your Company?

• SBIR– Phase I – 33%– Phase II – 50%

• STTR– Phase I – 74%– Phase II – 80%


54


We Know This Game

Special SBIR Team Considerations

• The PI’s Commitment– Employment status– Level of Involvement

• Other Employee considerations– W2 vs 1099 employees

• Consultants


55


We Know This Game

Special STTR TeamConsiderations

• The CRADA – Cooperative Research and Development

Agreement– Prepared by Office of Sponsored Projects

• IP Sharing Agreement– Division of new intellectual property– Prepared by Office of Technology Transfer


56


We Know This Game Commercialization

Issues

• You can’t make money from Phases I and II

• What kind of company do you want to be?

• Phase III isn’t funded by mandated small business set-asides


57


We Know This Game Phase III Benefits

When the Government is Your Customer

• No limitation on funding• Data Rights are preserved• Sole Source is justified


58


We Know This Game

CommercializationQuestions to Answer

• How will you make money from this technology development?

• What will it take to get you there?• How will you make the product?• Who will be your customers?• How will you sell to them?• How will you finance commercialization?


59


We Know This Game

Why is it so difficult to get to Phase III?

• Making and selling it is very different from inventing and designing it!

• Bootstrapping commercialization is virtually impossible.

• The company must undergo a culture shift to survive as anything but a “lifestyle” company.


60


We Know This Game Culture Shift?

• The Hallmark of Success changes from “Technical Excellence” to “Making the Numbers”

• The focus of “Operations” changes• The Founder may not be comfortable in

the new role as “Dealmaker”


61


We Know This Game

Seeking Outside Funding


62


We Know This Game

Agency Interest in Your Commercialization

• Their selection quality is ultimately measured on how well you do!

• Most offer special commercialization assistance programs

• They expect you to report your commercialization successes


63


We Know This Game

Commercialization Assistance Programs

• DOD– Commercialization Pilot Program (CPP)

• NIH– Commercialization Assistance Program (CAP)

• NSF– The SBIR MatchMaker Program

• NASA– Innovative Partnership Program

• DOE– Several Commercialization Support Programs


64


We Know This Game

DOE Commercialization Support Programs

• Commercialization Opportunity Forum– Focus: Business Plan development

• Trailblazer TM

– Early in Phase I to support transition to Phase II

• Virtual Deal Simulator TM

– Early in Phase II to map out a sequence of tasks that can lead to Phase III

• Technology Niche Analysis TM

– Mid-Phase II to identify Phase III partners


65


We Know This Game

In Conclusion

• The SBIR Program is a fantastic opportunity for small business R&D

• There are lots of potential SBIR projects in almost every technology arena

• The SBIR game is complex and highly competitive

• There are strategies to getting that competitive advantage needed to win

• You can play this game to WIN!


66


We Know This Game Playing the SBIR

Game to Win


www.SBIRcoach.com

Date post:	22-Dec-2015
Category:	Documents
Upload:	blaze-gilmore
View:	219 times
Download:	5 times

Learn the Plays That WIN We Know This Game © The SBIR Coach, 2007 1 Playing the SBIR Game to Win...

Documents