Preparing for Your First SBIR/STTR Award: Key Steps for Small Businesses to Demonstrate Before Receiving Funding
Congratulations on submitting your SBIR or STTR proposal! As you eagerly await the funding decision, it’s essential to ensure that your business is fully prepared to meet the expectations of the federal agencies that will be overseeing your award.
Winning a federal award is a significant achievement, but it's important to understand that agencies want to ensure you have the capacity, resources, and structure in place to manage and execute the project successfully. Here’s what agencies expect to see before they finalize your funding:
1. Project Management Capacity
Federal agencies need to be confident that your company can effectively manage the project from start to finish. This includes tracking milestones, managing budgets, and meeting deadlines. Demonstrating the experience and capability of your project management team is key to reassuring agencies that your business can deliver results. If you haven’t already, consider designating an experienced project manager who can keep the project on track and in compliance with all requirements.
2. Financial Stability & Accountability
Agencies will ensure that your business can responsibly manage federal funds. This includes tracking spending and maintaining financial accountability throughout the project. To meet this requirement, it’s often a good idea to work with a CPA who specializes in SBIR/STTR funding. They can help ensure compliance with federal financial regulations, assist with proper budgeting, and provide oversight as needed.
3. Established Policies and Procedures
Federal agencies require that businesses have well-structured policies and procedures in place to manage key operations. This could include protocols for timecard tracking, travel expenses, purchasing, and other day-to-day operations. Having these procedures in place demonstrates that your company is organized and capable of handling the logistical requirements of a federally funded project, ensuring that you stay compliant with all applicable federal rules and guidelines.
4. Compliance with Federal Regulations
Before receiving funding, your business must demonstrate a solid understanding of federal compliance and reporting requirements. These regulations cover various areas, including labor laws, intellectual property (IP) protections, and industry-specific guidelines. Agencies expect businesses to be well-versed in these regulations and prepared to comply with them throughout the award period. This is a critical step in demonstrating your readiness to handle the complexities of federal funding.
5. Infrastructure and Resources
Having the necessary physical and technological resources is essential to executing your project successfully. Federal agencies want to see that your company is equipped with the infrastructure needed to carry out your work. This could include things like lab space, equipment, software, and any other resources required for your project. Be ready to show that you have the capabilities to support the project’s needs and meet project objectives.
6. Risk Management & Contingency Plans
Agencies need confidence that you are prepared to manage risks and unexpected challenges that may arise during the course of the project. Whether it’s delays, technical issues, or resource shortages, your company should have clear risk management and contingency plans in place. These plans demonstrate that you can stay adaptable and continue making progress even when faced with setbacks.
7. Commitment to Deliverables & Milestones
Finally, agencies want to ensure that your business is committed to delivering the required results within the specified timeline. This means setting realistic milestones and demonstrating how you plan to achieve them on time and within budget. Agencies are looking for businesses that can provide measurable results and show consistent progress throughout the duration of the project. Be sure to outline your key deliverables and how you plan to meet these milestones.
Conclusion: The Road to Success Starts with Preparation
Preparing for your first SBIR/STTR award requires more than just a great proposal—it’s about showing that your business has the organizational capacity, financial stability, and compliance infrastructure needed to manage a federally funded project.
By addressing these key areas early on, you can demonstrate your readiness to execute the project and increase your chances of securing funding. As an expert in research administration, I recommend taking a proactive approach and building the necessary frameworks now. The more prepared you are, the smoother the transition to award management will be.