When applying for your SBIR, your budget considerations include more than just your direct costs of research. In a previous post, I mentioned the impact of F&A on your overall budget costs, below I highlight a few other considerations as you prepare for a Phase 1 submission.
- Facilities and Administration (F&A). Yep, I did a video. But I thought I would provide a link to showcase some examples at the University of Wisconsin System. It is also a great way to reach out and learn more directly from those administrators. For more helpful hints, review the Small Business Administration (SBA) tutorials on working with University partners in the SBIR program.
- Salaries. Salaries are likely your biggest budget impact. But did you calculate at 100%? Chances are the employees time on the project will be less than 100%, which impacts your budget calculations. The SBA tutorials provide some ways to expand your team with the use of collaborators and consultants, which might help you better leverage your SBIR budget.
- Fringe benefits. Think vacation & healthcare. In your SBIR budget, you are allowed to claim an indirect rate. Review this SBA tutorial to learn more about calculating indirect rates.
- Other costs. Government contracts and grants require administration. You might manage this well by hiring a reputable vendor experienced in managing government contracts and grants. Your SBIR likely won’t pay for all of this—but ask us about the 7% fee.
What does this mean if my SBIR budget is only $50,000 – $225,000?? First, don’t be discouraged! The SBIR/STTR program is still one of your best resources for innovation funding; access to new customers; and a network of support to develop high-risk tools. But the biggest mistake we see is for an entrepreneur to propose too much in a single submission.
The CTC can help you strategize a path where you can consider a reasonable set of experiments within the budget allowed. And with an SBIR award, Wisconsin businesses can take advantages of programs like SBIR Advance to help offset the costs not covered in your SBIR federal award.