How to Write an SBIR Commercialization Plan That Wins Funding

Why Your Commercialization Plan Can Make or Break Your SBIR Proposal

The commercialization plan is one of the most important and most underestimated sections of an SBIR proposal. Agencies fund SBIR to bring innovative technologies to market, not just to fund research. A weak commercialization plan is one of the most common reasons proposals get rejected.

What Agencies Want to See

Every SBIR agency requires a commercialization plan, and while the specific format varies, they all want to see the same core elements. Whether you are applying to NIH, NSF, or DoD, your plan must demonstrate a clear path from research to revenue.

Key Components of a Strong Commercialization Plan

1. Market Opportunity

Define the market your technology will serve:

Total Addressable Market (TAM): The total market demand for your technology category
Serviceable Addressable Market (SAM): The portion of the market you can realistically reach
Serviceable Obtainable Market (SOM): The portion you expect to capture in the first 3-5 years
Market Trends: Growth rates, regulatory changes, and technology shifts driving demand

2. Customer Analysis

Demonstrate deep understanding of your target customers:

Customer Segments: Who are the primary and secondary buyers?
Pain Points: What specific problems does your technology solve?
Customer Discovery: Evidence of conversations with potential customers (particularly valued by NSF)
Letters of Support: Letters from potential customers expressing interest in your technology

3. Competitive Landscape

Current Solutions: How are customers solving this problem today?
Direct Competitors: Companies developing similar technologies
Competitive Advantage: What makes your approach better, faster, cheaper, or more effective?
Barriers to Entry: IP protection, technical expertise, regulatory approvals

4. Business Model

Revenue Model: How will you make money? (Product sales, licensing, SaaS, service contracts)
Pricing Strategy: How will you price relative to competitors and customer willingness to pay?
Sales Channels: Direct sales, distributors, partnerships, online
Customer Acquisition Strategy: How will you reach and convert customers?

5. Regulatory Strategy (If Applicable)

For regulated industries (medical devices, pharmaceuticals, environmental technology):

Regulatory Pathway: FDA 510(k), PMA, De Novo, EPA approvals, etc.
Timeline: Realistic timeline for regulatory clearance
Clinical Requirements: What studies or trials are needed?
Budget Impact: How regulatory costs factor into your overall SBIR budget

6. Intellectual Property Strategy

Patent Landscape: Existing patents in the field and freedom to operate
IP Protection Plan: Patents filed or planned, trade secrets, copyright
SBIR Data Rights: Understanding the government's rights to SBIR-funded IP (the government gets a royalty-free license for government purposes, but you retain commercial rights)

7. Team and Resources

Management Team: Business and commercialization expertise (not just technical)
Advisory Board: Industry experts who add credibility and connections
Partnerships: Manufacturing partners, distribution partners, strategic alliances
Funding Strategy: How SBIR fits into your overall funding plan. SBIR provides non-dilutive funding that complements other sources.

8. Financial Projections

Revenue Projections: 3-5 year revenue forecast with assumptions clearly stated
Key Milestones: When will you reach prototype, first sale, break-even, profitability?
Funding Needs: What additional funding is needed beyond SBIR, and from where? (Series A, strategic partnerships, revenue)

Agency-Specific Commercialization Plan Tips

NIH

Include FDA regulatory strategy for medical devices and therapeutics
Address reimbursement strategy (will insurance cover your product?)
Discuss clinical adoption pathway
NIH wants to see that the technology will improve patient outcomes AND be commercially viable

NSF

Emphasize broader impacts and societal benefit
Include customer discovery evidence (I-Corps methodology is valued)
Show how the technology creates economic value beyond your company

DoD

Focus on transition: how will the technology get into military hands?
Identify the Program of Record or acquisition pathway
Include dual-use potential (military AND commercial applications)
DoD wants Phase III transition plans from Day 1

Commercialization Plan Across SBIR Phases

Your commercialization plan evolves across SBIR phases:

Phase I

Focus on market validation, customer discovery, and initial competitive analysis. The plan should show you understand the market opportunity and have a plausible path to market.

Phase II

Phase II plans should be more detailed with specific financial projections, identified partners, regulatory milestones, and evidence of customer interest (LOIs, MOUs, pilot agreements).

Phase III

Phase III is commercialization itself. By this point you should have paying customers, production capabilities, and a clear business model.

Common Commercialization Plan Mistakes

No customer evidence: Claims about market demand without supporting data or customer conversations
Unrealistic projections: Hockey-stick revenue forecasts without justification
Ignoring competition: Claiming no competitors exist (reviewers know better)
Generic market data: Using market reports without connecting them to your specific technology
Missing regulatory awareness: Not addressing FDA or other regulatory requirements for regulated technologies
No business team: All technical personnel with no one focused on commercialization

Strengthening Your Commercialization Plan

The strongest commercialization plans include:

Letters of support from potential customers or partners
Market research data specific to your technology segment
Evidence of customer discovery (interviews, surveys, pilot results)
A realistic timeline from research to revenue
Clear identification of additional SBIR opportunities and other funding sources to support the path to market

Get Expert Help With Your Commercialization Plan

A strong commercialization plan requires both market knowledge and understanding of what reviewers expect. An experienced SBIR grant writer can help you build a commercialization plan that convinces reviewers your technology will reach the market. Companies with international connections should also address how ownership structure supports commercialization.

Contact MJP Grant Consulting for a free consultation on your SBIR commercialization strategy.

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