The Important Business of “Keeping Up”

The old saying, “What you don’t know won’t hurt you,” is not valid when it comes to the business world. A business-minded version of this old saying might be, “What you don’t know will hurt you,” and an even more up-to-date, high-tech business version could read, “What you don’t know may cause you to go out of business!”

This latter version is pretty strong, but the idea needs to be taken seriously. Many businesses wither because they have no effective method for keeping up with what is going on, a shortfall that’s been recorded on the tombstones of formerly large, vibrant companies that read: “Here lies the remains of a company that fell behind in the business of keeping up.”

What exactly constitutes the business of “keeping up”? It’s a dual effort:

1. You must know what your competition is doing.
2. You must know future industry needs.

In today’s business world, you must keep in mind not so much what you know, but what your competitors and customers know. If this sounds confusing, imagine trying to operate a business, ignorant of the outside business environment; all the other owners and customers in the same industry have valuable information you do not possess. How could you compete in such critical areas as pricing, manufacturing, customer service, advertising, labor, etc.? Such a business owner may hit a lucky streak now and then and make some short-term progress, but in the long haul, the company will fail.

Charles Darwin concluded this theory years ago when he advanced his ideas on the survival of the fittest, and to this date nothing has changed, at least not in a democratic society like ours. To be the fittest, you must be aware of the advancements your competitors are making.

However, you can’t focus all of your efforts on simply watching what your competitors do. You must also focus on your own advancements, and doing so requires that you be aware of future business demands. You have to be aware of what services and products will be needed in the future in order to offer something marketable.

Since you must keep up to succeed in the business world, this issue of keeping up is one you must also address in your proposal. A well-written proposal offers a clear picture of the future business environment, including references to any and all competitors.

Consider these “red flags” that indicate a proposal writer hasn’t fully considered the importance of “keeping up”:

1. “Following development, we will determine the market potential and plan accordingly.”
2. “Our commercialization strategy will be developed at the end of Phase l.”
3. “We have no competition.”
4. “If we capture only 5% of the market, which is a $3 billion market, we will be successful.”
5. “Our product will sell since everyone will want one.”

These kinds of statements are all indicative of a proposal writer who has a shortsighted vision of the future, one that doesn’t consider the presence of competitors. To avoid shortsighted vision in your proposal, you should start the business of keeping up even before you start writing the SBIR proposal. Fortunately, there are several actions you can take to prepare for writing the proposal:

1. Contact the DTIC library and find out what publications are available and conduct a literature search to see what others are doing in your field.
2. Attend a national SBIR conference and make it a point to discuss your technology with a SBIR manager during the one-on-one sessions.
3. Determine which federal laboratory is doing research in your area of expertise and make contact with one of its scientists.
4. Identify the SBIR topic author and make a phone call to gain a clear understanding of what the author is really wanting.

In effect, make the extra effort that will leave little doubt that your technology and your business plans for commercialization are clearly in line with the expectations of the topic author.

Getting ready to write your proposal is probably more important than the actual writing process. Without making the effort to start from a competitive position, your business future may fall behind in the important business of keeping up.

“The only way of discovering the limits of the possible is to venture a little way past them into the impossible.”
Arthur C. Clarke

Words from a Winner-–QorTek, Inc.

COMPANY NAME: QorTek, Inc.
WEBSITE: www.qortek.com
ADDRESS: 2400 Reach Road, Suite 204, Williamsport, PA 17701
NUMBER OF EMPLOYEES: 14
AWARDED BY: NASA, Department of Defense

QorTek, Inc. specializes in research and design of digital-based power electronics, device technology, and microcontrollers. These include power electronics to drive reactive devices at high efficiency, direct integration of digital control devices, and proprietary electronic architectures.

Since 1998, QorTek, Inc. has been working to establish itself as a leader in the field of electronics and device technology, and it seems they are accomplishing the goal. Dr. Gareth Knowles, President and Co-Founder of QorTek, estimates the company has been awarded 30-40% of all its SBIR Phase I proposals submitted, and an even greater percentage of its Phase II proposals. In addition to SBIR funding from NASA and the Department of Defense, QorTek has won a significant number of other government grants and has secured partnerships and contracts with such companies as Boeing Helicopter, Sargent Controls, Lockheed Martin NESS, BF Goodrich, TRW, Honeybee Robotics, Boeing Phantom Works, and Curtiss-Wright EMD.

Dr. Knowles states that one of the most important things a first-time SBIR applicant must keep in mind is the time commitment involved. “Applicants need to be aware that submitting an SBIR proposal is a significant undertaking,” he says. “At QorTek, there is a great deal of planning and discussion that goes on before we type the first word of any proposal.”

One suggestion Dr. Knowles offers is to have a clear plan of action. “It’s helpful to consider such things as what questions need to be asked of the technical contact at the awarding agency, how to go about the actual writing, and what your next steps will be after completing the project. In other words, ask yourself what will enable you to get to Phase II or Phase III. Another important consideration should be determining who else will be involved as a member of your company’s team, whether it’s a larger commercial company or some form of outsourced production.”

Because a company needs to consider and plan for so many factors when preparing a proposal, the process can often seem overwhelming. For this reason, finding helpful outside resources can make all the difference. Dr. Knowles says taking advantage of the opportunity to speak with the technical point of contact, or program manager, at the agency is key. In QorTek’s case, these conversations have not only provided useful technical information, but sometimes also saved the company valuable time.

“There have been instances where we’ve called and described what our approach would be, only to find out that it didn’t fit with what the agency was looking for, and so we were able to move on to other avenues,” says Dr. Knowles. Additionally, he points out, the agency can sometimes suggest others to contact and possibly team up with while preparing a proposal.

Another resource Dr. Knowles has found to be helpful is the Defense Technical Information Center, or DTIC. The center’s services are free of charge and can provide documentation information not widely available through other means. Dr. Knowles offers high praise of this organization, noting its wealth of available information and fast turn-around service, with requested information often arriving within days.

It’s also important to be prepared for glitches and problems to arise throughout the submission process. Some of these can be issues out of your control, which makes them more frustrating. As was widely reported, the Department of Defense had serious problems with its electronic proposal submission system this past winter, preventing many applicants from submitting their proposals by the deadline. QorTek was one of them. (The Department of Defense subsequently reopened the submission dates to accommodate some of these companies.)

Dr. Knowles points out that it can also be difficult to find out precisely why your proposal is not being funded. “It may be something we’re doing wrong and could fix, but we don’t know about it!” As a whole, he expresses disappointment at the feedback received when a proposal is not funded and believes there is room for improvement in this area.

Knowles recommends conducting diligent research on the concepts involved in your project, pointing out that there are free patent searches that can be conducted on the Internet.

“Try to look for different approaches, not expansions on what’s already been done or proposed elsewhere.”

The bottom line, he says, is to think through the whole process from beginning to end. “A company that does this is far more likely to achieve success.”

“I not only use all the brains I have, but all that I can borrow.”
Woodrow Wilson