SBIR proposals: Three things you need to know about value propositions

  • April 14, 2023

What is a value proposition? Why do they matter in general, and why do they matter specifically regarding SBIR? These are some of our most common questions from clients.

#1. What is a value proposition in general

The official definition of a value proposition is “an innovation, service, or feature intended to make a company or product attractive to customers.” Value Proposition is a marketing term designed to allow companies to succinctly express to investors why they need a product or service. It is the “why” behind the intended desire for customers to buy from you. The value proposition is what differentiates you from competitors within your industry space.

#2. What is a value proposition in SBIR

It is important to understand what a Value Proposition is before you apply for SBIR. That way, your value proposition shines through in your application. If you know a Value Proposition is intended to make a company or product attractive to customers, and you know as an applicant to SBIR that the federal government is your customer, then it stands to reason an SBIR Value Proposition must entice the federal government to choose to fund your product over others.

#3. How to create a winning Value Proposition for SBIR

Remember that the federal government is an investor as well as a potential customer and that the success rate for these proposals is only 7-20% depending on the agency. This means that in terms of other applicants, there are many competitors, and there are likely several in your industry of expertise. To write a winning Value Proposition for SBIR is a twofold effort.

Firstly, you must explain how your solution is better/cheaper/faster than other market competitors. Secondly, you have to illustrate why your product would be more marketable to customers than competitor products (read: how the federal government will get a return on investment from funding you). This is no easy task and will require a bit of market research and customer discovery activities. Many clients also benefit from the added guidance of funding subject matter experts like the team at E.B. Howard Consulting.

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We assist our clients in locating, applying for, and evaluating the outcomes of non-dilutive grant funding. We believe non-dilutive funding is a crucial tool for mitigating investment risks, and we are dedicated to guiding our clients through the entire process—from identifying the most suitable opportunities to submitting and managing grant applications.