# Presentation: 418873

## Preparing a Commercialization Plan

*Presentation by Jenny C. Servo, Ph.D.*
*DAWNBREAKER®*
*June 3, 2003*

*Columbus didn’t just set sail. He sailed west!*

## Outline

- Who needs a commercialization plan?
- What’s in a commercialization plan?
- When should you start developing the plan?

## Who needs a commercialization plan?

- All Phase II applicants
- Phase 1/Phase 2 Fast Track Applications
*    **The agency is encouraging companies to institute best practices by having a plan.*
*	*

## What does the plan look like?

- 15 pages (Section J of Research Plan)
- Seven sections
- Value of the SBIR/STTR Project/ Expected outcomes, and impact
- Company
- Market, customer, and competition
- Intellectual Property (IP) protection
- Finance plan
- Production and marketing plan
- Revenue stream

## When to prepare?

- Review guidelines after receiving Phase 1
- Pay particular attention to issues of financing and letters of support, intent or commitment
- Develop a strategy to obtain letters
- Obtain information support  Markets/Competitors
- Universities
- Small Business Development Centers
- Technology Transfer Centers
- Separate content from form
- Address issues first and then draft a compelling case

## Value of SBIR/STTR Project

- Need addressed
- Current solutions and problems
- Describe your project in layperson’s terms
- Key technology objectives
- Societal, educational and scientific benefits

## Company

- Describe your company
- Brief description of company origins
- Corporate objectives - mission
- Core competencies - skills
- Present size
- # of employees
- Sales
- History of federal and Non-federal funding
- Regulatory experience
- Commercialization experience

## Company - continued

- Vision for the future (usually 5 years)
- How will you develop a sustainable business around this technology
- How will management change

## Market, Customer, Competition

- Describe the customer
-  end-user, beneficiary
- Advantages that you provide customer
- Hurdles that you will have to overcome to gain market/customer acceptance
- Describe the market and/or market segments
- Provide an overview of Competitive landscape
- What will the landscape look like in the next 5 years
- Describe your marketing and sales strategy
- Discuss strategic alliances, partnerships of licensing agreements you have that will help with FDA

## Intellectual Property (IP) Protection

- Legal counsel
- Who is your legal counsel and how often do you consult
- Forms of IP protection
- List pertinent patents, trademarks, copyrights
-  Age of IP
- International
- Other barriers besides IP

## Finance Planned

| Milestone | Date | $ required | Potential Source | Looking: Start date |
| --- | --- | --- | --- | --- |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |
|  |  |  |  |  |

*Provide an overview or what is needed in narrative form*

## Funding letters

- Letter of commitment of funding.
- Letter of intent or evidence of negotiations
- Letter of support
- In-kind - to test or evaluation the innovation

## Types of funding

- SBIR/STTR firm itself
- Angel investor
- Venture capital firm
- Investment companies
- Joint ventures
- R&D limited partnerships
- Strategic alliances
- Research contracts
- Sales of prototypes
- Public Offering
- State Finance Programs
- Non-SBIR R&D
- Production contract - government or industry

## Placement of letters

- Place relevant letters following letters from consultants and collaborators

## Production and Marketing Plan

- Production Plan
- Contract manufacturing
- In-house manufacturing
- Licensing
- Marketing Plan
- Marketing/Sales license
- Distributors/Reps
- Direct sales
- Marketing and sales plan
- Internet
- tradeshows

## Revenue Stream

- Income from sales
- Manufacture and direct sales
- Sales through value-added reseller
- Royalties from license
- Other....

## A Business Case...

- Is not a collection of information.
- Is a compelling argument which leads the reader to the conclusion that in light of the need; in light of the magnitude of the opportunity; in light of the company’s technology solution, its experience and/or preparations - there is money to be made.