“The government is a predictable source of cashflow,” quotes DeRosier. “That’s the second academic myth I learned.” She warns companies not to pre-spend their SBIR money until it is deposited in their bank account. “I received one award notice in June and was told the money would arrive in September, but I didn’t actually receive the deposit until February.” “The bureaucracy in the SBIR program seems to be worse than the R01 environment,” notes Dr. Steck. “There are more monthly reports, and the accounting matters are more time consuming.”

A great score on your SBIR proposal isn’t money in the bank. “Even if you get a great score from the reviewers, and even if the agency tells you that they want to make an award, you can expect to have to jump through a hoop of discussion and negotiations,” says Gail Greenwood. “First,” according to Greenwood, “anticipate that the agency will want to ask some questions about your cost proposal.”

Notes Dr. Shih, “It is helpful to meet face-to-face with SBIR program directors in the various agencies, who, for the most part, are very approachable and helpful.” Jim Greenwood agrees. “Don’t be a stealth Phase I recipient: communicate with the agency. The word is ‘schmooze,’ and if you aren’t doing it in the Phase 1 project, you are making a big mistake.”

Dr. Shih offers suggestions based on his Phase II application experience. “Talk with potential end-users in your target market and, if possible, obtain letters of support from them. Agencies are focusing more and more on how you plan to commercialize your product or technology in Phase II.”

To win Phase II “you have to prove yourself to the awarding agency,” notes Jim Greenwood. “Don’t’ be labeled an SBIR Phase I whiner. A whiner is a winner who contacts the agency repeatedly about management woes and routine problems. Why would an agency want to prolong such agony by giving a whiner a Phase II award?”

“Have someone critique your proposal,” recommends Dr. Friedman. “A fresh set of eyes to review the proposal prior to submission is very useful.” Friedman has used the SBTDC’s SBIR resources since the early days of his SBIR efforts. “The help provided by the SBTDC was invaluable. But it was not only the hints, success stories, and reminders that we get every month from the SBTDC’s SBIR newsletter. John Ujvari actually sat down and read the proposal in detail, read the comments from last’s year’s reviewers, and made extensive suggestions on how to answer them,” notes Rudy Rodriguez, President of Advanced Animal Diagnostics.

“Read the proposal instructions carefully and obtain sample grant proposal from others to ensure appropriate formatting and contents,” recommends Dr. Shih. “Focus the Phase II study with measurable endpoints consistent with industry standards.”

“The SBTDC’s SBIR workshops have provided a unique opportunity to directly interact with SBIR personnel from federal agencies and to share experiences with other SBIR award winners,” said Phil Schaefer, SBIR award winner and Chief Scientist at Vortant Technologies of Weaverville in western North Carolina.

Numerous SBIR resources, including proposal preparation assistance, workshops, sample proposals and conferences are available for North Carolina’s SBIR applicants. For more information, visit http://www.sbtdc.org/sbir.

Dr. Shih offers this advice to growing a SBIR funded tech company: “Building an entrepreneurial business is like driving a car, and cash is your fuel. In this current funding climate where gas stations are far apart, the SBIR grant program remains a viable option for entrepreneurs to fill their tanks and extend their drive. Good luck, and happy motoring.”

· Contact an SBIR counselor ·