SBIR and the Lean Start Up…
Several years ago I read the business book The Lean Start Up by Eric Ries. In this book the author contends that start ups should not try to go to market with what they believe is a complete strategy or product. Instead the thesis of the book is that start ups should focus on launching with a minimal viable product and plan. This approach will allow the company to quickly get into the market, gather actual market feedback and insights, and iterate to refine their product and strategy. The last thing a company wants to do is spend way to much time and precious resources building out a complete product and strategy only to have it hit the market and be a flop. Instead the book recommends, launch with a low cost, low risk solution with the objective of gathering actual market/customer feedback and iterate your technology and go to market approach like crazy based upon actual market data.
At Marion Square we focus on helping technology companies launch/grow their US Government business. We view the Governments Small Business Innovative Research (SBIR) research program as a low cost, low risk approach for small technology companies to test Government product / market fit for their product or service. Instead of guessing at market requirements or running around the DC beltway trying to meet with dozens of agencies the SBIR program (especially the USAF Open Topic) allows organizations to submit a short proposal (typically less than 10 pages) explaining how their product/service will solve a USAF problem.
If your proposal is selected for Phase I the Government will then provide a contract and funds to enable you to meet with various USAF programs, pitch your technology and elicit their feedback on the value of your technology to their organization. A large part of these discussions are focused on validating product/market fit and determining what (if anything) would need to be added to your product to make it useful for their specific environment. (functionality, certifications, integrations, etc) The overarching objective of Phase I is to validate product/market fit, identify necessary technology modifications, and gain a sponsoring organization to support your proposal for a Phase II contract award. In a Phase II the Government will fund your organization to make the necessary enhancements so that your technology can be deployed by the Government on a product basis.
With an SBIR Phase I you are essentially "pitching" your idea to solve a real world Government problem. If the Government see's value in what you are doing and the problem you are solving chances are they will fund a Phase I, which at least should validate your initial value proposition thesis. During the execution of the Phase I contract your value prop and technology has the potential to be further validated by meeting with actual customers, demonstrating your technology and gaining their feedback. The best part of this entire process is....it is all funded by the Government.