1. Misunderstanding the Strategic Value of SBIR/STTR Contracts
Mistake: The SBIR/STTR program is designed to drive innovation for U.S.-based small businesses, but too many see it as just a way to grab some R&D dollars. Yes, it’s non-dilutive funding, but it’s also your ticket to get in front of the DOD, deliver real capabilities, and get them excited about your tech. If you only focus on the money, you’re missing the real opportunity: building relationships, earning trust, and proving your value to DOD stakeholders. This program is a launchpad for bigger contracts and long-term deals—all while the DOD covers your initial R&D costs.
Advice: Stop thinking small. Use the SBIR/STTR program as your launchpad to show the DOD what you’re made of. Get in front of end-users early, prove you can deliver, and turn that first contract into a gateway to bigger deals and lasting partnerships. This is your chance to make the DOD pay for your R&D while you lock in relationships and set yourself up for future wins.
2. Early Wins Can Breed Complacency
Mistake: Landing an SBIR/STTR contract can feel like you’ve made it—but don’t get too comfortable. DOD requirements change constantly, and with AI reshaping the battlefield at lightning speed, what worked yesterday might be irrelevant tomorrow. Moreover, your competitors are watching and adapting. If you’re riding the wave of early success without innovating and staying ahead of the curve, you’re setting yourself up to get left behind.
Advice: Don’t rest on your laurels. Stay ahead of the game by continuously improving your tech and keeping a pulse on shifting DOD needs. Treat every contract like it’s your first, and keep pushing the envelope. Show the DOD you’re not just here to win once—you’re here to dominate.
3. Early Losses Can Breed Doubt
Mistake: Many small businesses give up on the SBIR/STTR process too quickly. They get discouraged after a couple of rejections and decide the DOD market isn’t for them. The truth is, that winning these contracts takes persistence, refinement, and learning from feedback. Giving up early means missing out on long-term opportunities and potential big wins.
Advice: Stick with it. Use feedback from unsuccessful proposals to improve and strengthen your next submission. Reach out to program managers to understand what you can do better and adjust your approach. The companies that succeed in the DOD space are the ones that learn, adapt, and keep pushing until they break through.
4. Underestimating the Power of Relationships
Mistake: Thinking that winning a contract is all about the proposal is a rookie mistake. The truth is, that relationships matter. If you’re not networking with program managers, DOD stakeholders, and industry partners, you’re flying blind. Without these connections, you’re missing critical insights and support that could tip the scales in your favor.
Advice: Get out there and network. Build relationships with DOD insiders and industry players. Attend defense events, engage with program managers, and seek out partnerships. The more people know you and your capabilities, the better your chances of winning contracts and getting your tech into the field.
5. Flying Solo Without the Right Backup
Mistake: Many small businesses think they can handle the entire SBIR/STTR process solo, but navigating the DOD landscape is no small feat. From crafting winning proposals to building a solid network and nailing compliance, trying to juggle it all on your own can lead to costly mistakes and missed opportunities.
Advice: Don’t go it alone. Bring in the pros. Whether consultants with DOD know-how or teaming up with a seasoned prime contractor, having the right support can be a game-changer. They’ll help you cut through the red tape, connect with the right players, and fine-tune your proposal to make it stand out. It’s an investment that pays off in credibility and contract wins.
That’s where SightLine Ventures comes in. Our seasoned expert operators know how to navigate the system and get results. We don’t just help you check boxes—we position you for success, connecting you with key stakeholders, crafting proposals that hit the mark, and driving your tech to the front lines.
Ready to take your DOD game to the next level? Let’s talk.