How To Win Your First SBIR

The Startup Guide to SBIR/STTR for founders in 2025

Did you know the US federal government spent a $6.75 trillion last year? It’s the world’s biggest customer. For startups and small business owners, the federal government can also be a source of non-dilutive funding and early customers. But while most advice tells you to register at sam.gov and start bidding, that’s actually not the smartest way into the govcon game for newcomers.

In our recent video, we walk you through the real steps to winning your first government contract, sharing what we wish we’d known as founders who went from zero knowledge to landing our first contract in just three months. If you’re ready to play the long game and unlock new revenue with government work, give it a listen.

Key Takeaways

1. Don’t Start with sam.gov

• Most advice online sends you to sam.gov to register and start bidding.

• Reality: If you see a bid posted on sam.gov, you’re usually already too late—those contracts often require past performance you don’t have as a newcomer.

2. The Best Entry Point: SBIR & STTR Programs

• SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) are government programs specifically designed for small businesses with no prior government contracting experience.

• These phased programs let you start small, prove your capabilities, and graduate to larger awards as you succeed.

3. Registration is a Must—But It’s Manageable

• You’ll need to register your business (LLC or C Corp), get a Small Business Concern certificate from the SBA, obtain a sam.gov account, EIN, and a CAGE code from the Defense Logistics Agency.

• It can seem overwhelming, but if you’ve started a business, you can definitely handle this process.

• Pro tip: We have a free, step-by-step guide that lists all the registrations, emails, and links you’ll need.

4. How to Find the Right Opportunity

• Every agency (NASA, DoD, DOE, NIH, NSF, etc.) has its own SBIR/STTR program and timelines—there’s no single calendar. Investigate each agency’s priorities and application requirements to find a fit.

• Look for “open topics” if there isn’t a specific topic that fits your business. Open topics let you pitch your innovation, even if the agency hasn’t asked for it yet.

• Develop a process to determine if a topic is worth the effort to bid. First up for us is to always check if a topic is “shaped” (i.e., crafted for a specific company) by searching for unique jargon or phrases in the requirements. If only one company pops up, move on.

5. STTR vs. SBIR: Know the Difference

• STTR requires you to partner with a research institution (like a university), which must do at least 30% of the work.

• STTRs can be easier to win (fewer applicants), but sometimes harder to commercialize due to intellectual property (IP) sharing and lower funding caps.

• Don’t be scared off by IP concerns—most Phase I projects use standard agreements, and you retain rights to pre-existing inventions.

6. Timing & Expectations

• Winning a contract is a long-term game: expect at least six months from application to first payment, and longer if there’s a government shutdown or budget delay.

• Government contracts are not for founders looking for quick wins, but they’re worth it if you can plan for the long haul.

7. Use All the Resources

• Leverage every free resource available: official SBIR.gov info, podcasts, YouTube channels, eBooks (including ours!), and our free registration guide.

• The journey is a marathon, not a sprint—but with the right strategy and persistence, you can win your first award and scale up to bigger contracts.

Frequently Asked Questions (FAQ)

Q1: What is the easiest way for a startup to break into government contracting?
A: Start with the SBIR or STTR programs—they’re designed for small businesses with no prior contracts. Avoid jumping straight into sam.gov bids as a newcomer.

Q2: What registrations do I need before I can apply?
A: You’ll need a US-registered business (LLC or C Corp), a Small Business Concern certificate, a sam.gov account, EIN, and a CAGE code. Our free guide walks you through each step.

Q3: How do I find the right SBIR/STTR opportunity for my business?
A: Research each agency’s program and timeline. Look for open topics if your product doesn’t fit a specific call. Always check if a topic is “shaped” for a particular company before investing time in a bid.

Q4: What’s the difference between SBIR and STTR?
A: STTR requires a research partner (university or nonprofit) for at least 30% of the work. It can be easier to win but involves more paperwork and potential IP sharing.

Q5: How long does it take to get paid after winning a contract?
A: Plan for at least six months from submission to contract award and first payment—sometimes longer due to government processes.

Q6: Is there a single website for all SBIR/STTR opportunities?
A: Unfortunately, no. Each agency manages its own topics and timelines. We provide a consolidated list in our free guide to make it easier.

Q7: What if the registration process seems overwhelming?
A: If you’ve built a product, pitched investors, or launched a company, you can handle government contracting registrations. Use our free resources and take it one step at a time.

Want to Go Deeper?

Check out our free eBook for startups covering SBIR/STTR registration bid strategies, and explore more resources on our blog and YouTube channel.

Have more questions? Drop them in the comments or reach out via our contact form—we’re here to help you win your first government contract!