Develop Business Disciplines

Successful SBIR competition in Phase 1 and 2 may well come to naught if the host small business is not equipped with the necessary business disciplines to capitalize on the SBIR resources awarded. There are too many cases where SBIR projects come to a disastrous end because of mis-management of the business and project. There are many more SBIR projects and host small businesses that have been compromised by poor business practices.

Like SBIR competition, necessary business disciplines cover a broad spectrum. An abbreviated list includes marketing and sales, project and contracts/grants management, cost control, finance, accounting, human resources, and intellectual property management. As the small business is started and evolves, so must the development of these disciplines and procedures. If the business development gets too far ahead of these disciplines, business chaos and dysfunction will be a likely consequence.

Frequently, scientists and engineers start small businesses that compete for SBIR resources with little knowledge about efficient and effective business operations. It is vital that these new small businesspersons take steps necessary to learn the ropes of business operations. Some are more willing to learn than others, and the consequences usually are apparent downstream. Some may be convinced they have all required tools, and are less prepared to embark on the process to develop necessary business disciplines.

How does a small businessperson learn and develop the necessary disciplines? Study the words of successful veteran small businesspersons. The series by Milton Chang (see Section 3 above) is an excellent starting point. Seeking out advice from and working with mentors is a highly effective method to gain necessary skills. Hiring professional consultants to support business activities is particularly effective in areas such as accounting, government contract and audit management, intellectual property management and other legal issues.

First, recognize the need for developing business disciplines, and then establish a priority program for developing and nurturing them at the business. It will make a big difference in the end-game scenario!!!