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After helping hundreds of small businesses apply for SBIR and STTR grants, we have seen the same mistakes sink otherwise promising proposals. Here are the 10 most common errors and how to avoid them.
The single biggest mistake is failing to read the full solicitation topic. Agencies publish detailed descriptions of what they want. Applicants who skim these documents and submit generic proposals get rejected immediately. Every sentence in the solicitation is there for a reason, and reviewers check that your proposal directly addresses the stated objectives.
Many technically brilliant proposals fail because the commercialization plan is an afterthought. Agencies want to fund technologies that will reach the market. Your commercialization section must include a clear market analysis, identified customers, a realistic go-to-market strategy, and evidence of market pull. A strong commercialization plan can be the difference between a funded and unfunded proposal.
Your SBIR budget must align precisely with your technical plan. Common budget mistakes include math errors, rates that do not match your cost accounting system, missing budget categories, and costs that cannot be justified by the proposed work. Reviewers look for internal consistency between your technical approach and your budget narrative.
SBIR has strict eligibility requirements around company size, ownership, and principal investigator employment. Companies that are not at least 51% U.S.-owned, exceed 500 employees, or do not have a qualified PI are automatically disqualified. Verify eligibility before investing time in a proposal.
Every SBIR agency publishes its review criteria and how proposals are scored. The NIH evaluates significance, investigators, innovation, approach, and environment. The NSF focuses on intellectual merit and broader impacts. The DoD emphasizes technical merit, qualifications, and potential for commercialization. Structure your proposal to directly address these criteria.
While Phase I proposals do not require extensive preliminary data, showing some evidence that your approach is feasible dramatically increases your chances. This could be lab results, prototypes, simulations, or even a thorough literature review demonstrating the scientific basis for your approach. The agencies that fund SBIR want to see that you have done your homework.
A proposal without clear milestones, timelines, and deliverables signals that the team has not thought through the execution. Include a Gantt chart or detailed work plan showing specific tasks, responsible personnel, and measurable milestones for each month of the project. Understanding SBIR timelines from proposal to funding is also critical for project planning.
SBIR applications require registrations on multiple platforms including SAM.gov, Grants.gov, and agency-specific portals. These registrations can take weeks to process. Companies that start this process too late miss deadlines entirely. Begin your registrations at least 6-8 weeks before you plan to submit.
Each federal agency funds different types of research. Submitting a biotech proposal to the DoD or a defense technology to the NIH wastes everyone's time. Research which agency and specific topic aligns with your technology. Understanding the differences between SBIR and STTR programs and the different SBIR phases will help you target the right opportunity.
Many first-time applicants try to write their first proposal without any guidance. While it is possible to succeed on your own, the learning curve is steep. Working with an experienced SBIR grant writer significantly increases your chances, especially for your first submission. Grant writers bring expertise in proposal strategy, agency expectations, and compliance requirements.
The common thread in all these mistakes is preparation. Successful SBIR applicants:
SBIR grants provide non-dilutive, non-repayable funding that can transform your business. Do not let avoidable mistakes keep you from accessing this incredible resource.
Contact MJP Grant Consulting for expert help with your SBIR application.
