SBIR Phase I vs Phase II: How to Progress

You're involved in developing a new manufacturing technology or product. You've heard about the SBIR program — Small Business Innovation Research — and maybe you've already applied. But you’re not quite sure how Phase I and Phase II differ or what steps you need to take to progress from one to the other. That’s understandable. Let’s break it down plainly.

What is the SBIR Program?

The SBIR program is a government initiative designed to help small businesses develop innovative ideas into market-ready products. It involves phases:

• Phase I: The proof of concept. You prove that your idea is feasible.

• Phase II: Development and scale-up. You build on the Phase I results to develop a working prototype or initial product.

• Phase III: Commercialization, where you bring your product to market — though this isn’t funded directly through SBIR.

Differences Between Phase I and Phase II

Objectives

Phase I aims to test the basic feasibility of your idea. It’s a smaller project, often lasting 6 months to a year, with funding typically around $150,000.

Phase II focuses on developing a working prototype or furthering technology, with larger budgets (up to $1 million or more) and longer durations (often 2 years). It’s about turning your idea into a real product or process.

What’s Required to Move Forward?

Completing Phase I successfully is essential. You need to demonstrate at a basic level that your idea has potential, based on data and prototypes. Once you've proved feasibility, you can prepare a detailed Phase II proposal.

How to Progress from Phase I to Phase II

1. Meet Future Funding Goals: Ensure your Phase I results convincingly show the feasibility of your concept. Gather data, test prototypes, and refine your idea.

2. Plan Your Phase II Project: Develop a detailed, realistic plan. Define objectives, milestones, budget, and timeline. Include how you will scale the prototype into a usable product.

3. Prepare a Competitive Proposal: Your Phase II proposal must directly build on your Phase I findings. Highlight your team’s expertise, the potential impact, and the commercial potential. Include clear milestones and expected outcomes.

4. Address Evaluation Criteria: Federal agencies evaluating your proposal look for technical merit, the potential for commercialization, your team’s capability, and a clear plan for execution.

5. Seek Guidance and Feedback: Many agencies offer review sessions or feedback opportunities. Connect with mentors, or organizations like the Small Business Development Center (SBDC), for help to strengthen your proposal.

Best Practices for a Successful Transition

• Build on Your Results: Use your Phase I data to demonstrate promise and reduce uncertainties.

• Collaborate: Partner with research institutions, industry experts, or other small businesses to enhance your technical and commercial approach.

• Stay within Budget and Timeline: Be realistic about what can be achieved and plan your resources accordingly.

• Communicate Clearly: Make sure your proposal tells a compelling story of your innovation's value and feasibility.

Summary

Moving from SBIR Phase I to Phase II is about proving your idea’s potential and then expanding on that success. Focus on collecting solid data during Phase I, plan thoroughly for Phase II, and craft a compelling proposal that demonstrates your capacity to turn your innovation into a market-ready product.

If you’re ready to advance your project, take advantage of resources at SBIR.gov, and small business support organizations. Step-by-step, you can turn your manufacturing innovation into a successful commercial product.