Table of Contents  Mission .......................................................................................................................................................................................... 3 Vision ............................................................................................................................................................................................. 3
THE EDGE SERVICES ................................................................................................................. 3 The EDGE Incubation Program ............................................................................................................................................ 3
MARKET .................................................................................................................................... 5 Overall Market ............................................................................................................................................................................ 5 Target Market ............................................................................................................................................................................. 8 Findings ........................................................................................................................................................................................ 8 Competitors: ............................................................................................................................................................................. 10 Primary Research: .................................................................................................................................................................... 11 SWOT Analysis .......................................................................................................................................................................... 11
SPECIFIC MARKETING GOALS & STRATEGIES ..................................................................... 12 FINANCIAL ESTIMATES .......................................................................................................... 13 ASSESSMENT OF MARKETING ACTIVITIES ...........................................................................14 Outcome 1: Increased awareness of The EDGE ............................................................................................................ 14 Outcome 2: Increased awareness of incubated businesses and co-workers .................................................... 14 Outcome 3: Promoted services are being realized ..................................................................................................... 15 Appendices ............................................................................................................................................................................... 16
Mission & Vision Mission Our mission is to aid emerging businesses with the development of management, financial, and technical skills in a maturing environment so that they can thrive in the local business community. The Edge is looking to provide a maturing environment for existing or potential businesses. The Edge's working environment caters to individuals who already have existing businesses or individuals who only have business propositions and need assistance in getting a business up and running. The Edge will lead you in the right direction, considering any aspects pertaining to small business development.
Vision
The EDGE Services The EDGE Incubation Program ***Discuss here the incubation program from start to finish. Sort of step by step how a business starts at The EDGE (application, working at the EDGE, coworker/in-house space,) to the end (how a business “graduates�) and how The EDGE helps in each part of the growth phase.
Virtual and Co-Workspace Transform your business and the way you work. Our low cost co-working environment is an alternative workplace with a creative EDGE. You'll find a great community of entrepreneurs and professional space designed to work the way you work. This open air area of drop-in desks located in the center of The EDGE, allows a new concept in productivity for the entrepreneur. Five levels of monthly membership offers a versatile business solution for dropin space, virtual offices, meeting space and training, or a first step away from working at home.
Incubation Space The EDGE offers an incubation program for new and developing businesses. Through this program, resident businesses can take advantage of affordable office space and shared resources such as administrative support, audiovisual equipment, copying equipment, meeting rooms and low-cost telephone, fax and internet services. This is a private office space that you have access to 24/7. Allowing start-up businesses to allocate more of their time and resources to other areas during their critical growth period.
Counseling and Mentoring Understanding the process of starting and growing a business can be extremely complicated. Those who utilize The EDGE have access to one-on-one counseling from experienced business professionals and subject matter experts to help them at every stage of their development, from idea conception to business expansion. Mirroring the Chamber of Commerce of West Alabama’s One Stop Business License and Permitting Center found online at www.youronestopcenter.com, The EDGE’s personnel are positioned to guide individuals through the process of complying with municipal, county, state and federal policies, procedures and regulations. Individuals can also be referred to professional mentors based on their specific needs, whether it is developing business plans, maximizing the use of technology, or adopting long-term strategies for growth. The EDGE also provides guidance on the basic, day-to-day operations required to run a business, such as bookkeeping and human resources.
Education and Training The EDGE offers a variety of classes, workshops and seminars to aid in every stage of business development. Subject matter experts from the local business and higher education communities will provide practical, relevant information to help businesses navigate the complex issues of today’s economic climate. Budding entrepreneurs, seasoned business owners and everyone in between will find an education track to meet their needs.
Minority Business Support Minority-owned businesses often face unique challenges in both their establishment and sustainability. In partnership with the Minority Business Council (MBC) of the Chamber of Commerce of West Alabama, The EDGE offers mentoring and networking opportunities with successful minority business owners who have overcome those challenges. The EDGE and
MBC also host training, workshops and seminars that are specifically geared toward helping minority-owned businesses achieve success.
Access to Funding Access to sufficient capital is often one of the major obstacles to starting and growing a business. The EDGE can assist new and existing business owners in exploring the wide variety of funding sources that are available in today’s marketplace. Loan application assistance is available, as is training on how to pursue local, state and federal government contracts. The EDGE also provides exposure to private equity groups, such as the Tuscaloosa Angel Network, and encourages opportunities for private investment in new and existing businesses with high-growth potential.
Marketing and Advertising In conjunction with the Chamber of Commerce of West Alabama, The EDGE offers businesses a variety of networking and promotional opportunities throughout the year, such as the “Chamber Connects” Business After Hours. The EDGE also has public relations and media specialists available to assist businesses with effective marketing and advertising strategies.
Market Overall Market The overall market for The EDGE is the West Alabama population. West Alabama consists of 7 counties including Tuscaloosa County, Pickens County, Lamar County, Hale County, Greene County, Fayette County, and Bibb County. Tuscaloosa County is the most densely populated of the seven, with a projected population of 230,667 in 2016. The EDGE should consider marketing to all seven counties, with Tuscaloosa County as a focus.
West Alabama Market Quick Facts:
Understanding the demographics of each county will help The EDGE understand what type of business start-ups might come out of each county.
Tuscaloosa County QuickFacts
People QuickFacts Population, 2012 estimate Population, 2010 (April 1) estimates base Population, percent change, April 1, 2010 to July 1, 2012 Population, 2010 Persons under 5 years, percent, 2012 Persons under 18 years, percent, 2012 Persons 65 years and over, percent, 2012 Female persons, percent, 2012
Tuscaloosa County Alabama 198,596 4,822,023 194,653 4,779,745 2.0% 0.9% 194,656 4,779,736 6.1% 6.3% 21.2% 23.3% 11.1% 14.5% 51.6% 51.5%
White alone, percent, 2012 (a) Black or African American alone, percent, 2012 (a) American Indian and Alaska Native alone, percent, 2012 (a) Asian alone, percent, 2012 (a) Native Hawaiian and Other Pacific Islander alone, percent, 2012 (a) Two or More Races, percent, 2012 Hispanic or Latino, percent, 2012 (b) White alone, not Hispanic or Latino, percent, 2012
66.9% 30.3% 0.3% 1.3% 0.1% 1.0% 3.2% 64.2%
70.0% 26.5% 0.7% 1.2% 0.1% 1.5% 4.1% 66.6%
Living in same house 1 year & over, percent, 2007-2011 Foreign born persons, percent, 2007-2011 Language other than English spoken at home, percent age 5+, 2007-2011 High school graduate or higher, percent of persons age 25+, 2007-2011 Bachelor's degree or higher, percent of persons age 25+, 2007-2011 Veterans, 2007-2011 Mean travel time to work (minutes), workers age 16+, 2007-2011
80.4% 3.5% 6.3% 85.3% 26.0% 12,388 21
84.5% 3.4% 5.0% 81.9% 22.0% 403,982 24
Housing units, 2011 Homeownership rate, 2007-2011 Housing units in multi-unit structures, percent, 2007-2011 Median value of owner-occupied housing units, 2007-2011 Households, 2007-2011 Persons per household, 2007-2011 Per capita money income in the past 12 months (2011 dollars), 2007-2011 Median household income, 2007-2011 Persons below poverty level, percent, 2007-2011
85,559 63.8% 26.0% $150,600 68,711 2.66 $22,449 $43,538 19.9%
2,182,088 70.7% 15.5% $120,800 1,831,269 2.53 $23,483 $42,934 17.6%
Business QuickFacts Private nonfarm establishments, 2011 Private nonfarm employment, 2011 Private nonfarm employment, percent change, 2010-2011 Nonemployer establishments, 2011 Total number of firms, 2007 Black-owned firms, percent, 2007 American Indian- and Alaska Native-owned firms, percent, 2007 Asian-owned firms, percent, 2007 Native Hawaiian and Other Pacific Islander-owned firms, percent, 2007 Hispanic-owned firms, percent, 2007 Women-owned firms, percent, 2007 Manufacturers shipments, 2007 ($1000) Merchant wholesaler sales, 2007 ($1000) Retail sales, 2007 ($1000) Retail sales per capita, 2007 Accommodation and food services sales, 2007 ($1000) Building permits, 2012 Geography QuickFacts Land area in square miles, 2010 Persons per square mile, 2010 FIPS Code Metropolitan or Micropolitan Statistical Area
Tuscaloosa County 3,968 70,099 0.4% 11,080
Alabama 97,743 1,573,138 0.3% 321,641
14,729 13.3% 0.9% S F S 22.5%
382,350 14.8% 0.8% 1.8% 0.1% 1.2% 28.1%
10,852,479 112,858,843 760,623 52,252,752 2,445,850 57,344,851 $13,664 $12,364 327,429 6,426,342 901 13,506 Tuscaloosa County Alabama 1,321.76 50,645.33 147.3 94.4 125 1 Tuscaloosa, AL Metro Area
Target Market Primary target The primary target audience is new and emerging business owners in knowledge-based and technical industries. This segment of the target audience will primarily make up the businesses incubated by The EDGE.
Psychographics According to the May 2012 edition of the Small Business Owner Report by Bank of America, small business owners between the ages of 18-34 are somewhat of different breed from their older counterparts. Generally, they are more optimistic about the economy as well as their own opportunities for revenue growth. In addition, 18-34 year olds exhibit significantly more confidence about their own financial savvy and the impact of their decisions (rather than the economic environment they work in) on business results. This confidence, however, does not prevent 18-34 year olds from relying on virtually every source of financial guidance much more frequently than older groups. Moreover, 18-34 year olds are committed to pushing forward despite the substantial toll on their personal lives as evidenced by the fact that this group is more likely to make sacrifices in every category across the board.
Secondary target The secondary target audience consists of existing small business owners in the Tuscaloosa area or surrounding region. These are businesses that have experienced slow or stagnant growth. The Chamber of Commerce of West Alabama describes the small business makeup as “family-owned professional firms, franchises, and old fashioned, service-oriented businesses.� Although this does not describe the ideal client for incubation at the EDGE, there are also a variety of small businesses outside of this description. These mainly include emerging restaurants and retail shopping stores, primarily located in shopping centers and downtown areas of Tuscaloosa and Northport. Owners of these businesses could greatly benefit from some of the non-incubation services the EDGE plans to offer such as business classes, smallloan referrals, and business plan development.
Findings Findings indicate that our target market is very interested in free or low-cost services that assist them in enhancing business performance. Services of particular interest to the target market are related to: marketing, bookkeeping, taxes, and free or low-cost use of workspace
and office supplies. Along these lines, we believe emphasizing these services to new businesses will lead to higher participation numbers. Further, building awareness among Tuscaloosa County businesses and the UA student body will lead to increased brand recognition, in general. However, in order to market an accurate brand identity for The EDGE, there are some important questions to be answered. We look forward to being involved with the marketing strategy creation and implementation as the project develops.
1. Does the mission statement clearly state the true goal of The EDGE? We believe this should be more specific and carefully crafted to show the distinction from existing centers, both on and off-campus. Mission statements for APC, SBDC and AEI clearly overlap. These centers need to be strategically aligned to avoid duplication of efforts and wasting of resources.
2. To whom does The EDGE prove its value (besides customers)? The roles of the city and The University need to be determined and put in writing for the center’s leadership to accomplish its mission. Because offering services at no cost to the community will cause the center to show a loss, there needs to be less emphasis on revenue maximization and more emphasis on client outcomes, especially in the first few years of brand identity development.
3. What is The EDGE’s organizational relationship to other research centers on campus? Because the center will be research driven, the relationship with The Office of Research needs to be clearly defined. How will time-sensitive research projects be quickly approved? How will processing of research requests be handled? How can research opportunities be leveraged to draw support from other Deans and faculty on campus for collaborative projects? Will efforts of faculty to help EDGE clients be able to qualify that time towards tenure status?
4. What strategic partnerships make sense? ATN/ APC, SBDC, AEI We recommend The EDGE determine the potential impact of realigning the Alabama Productivity Center, Small Business Development Center and Alabama Entrepreneurial Institute under The EDGE and housing them under the same location. The synergy created by having the leadership and clients of these different organizations housed together could make a tremendous impact on the success of the clients and the brand identity.
5. Where will the future site be located? Building off the recommendation from question four, we further believe that EDGE leadership should determine the feasibility of partnering with The City of Tuscaloosa (possibly with financial support from local lodging tax revenues), to create a facility housing The EDGE at a location on campus that provides easy accessibility for students, faculty and citizens to participate in EDGE services. Brainstormed ideas for this location include a new facility near the proposed Welcome Center on the Bryce Lawn property, or an addition to the Bryant Conference Center (BCC). Although the City would have no managerial influence at the physical location, it would more clearly show a commitment to local businesses that the University and the City can work together to drive economic development in this community. The BCC location is one that lends itself to inclusiveness; for other colleges to regularly and actively participate at the center. Marketing The EDGE on certain key competitive advantages at this point may do more harm than good. For example, at this point, The EDGE does not offer the most technologically advanced office and meeting space compared to its competitors. Because The EDGE intends to target knowledge-based businesses as incubators, it will need to leverage University resources to provide video-conferencing services (with A/V support), color printing, up-todate software licensing, etc., for its clients. Once these questions can be answered we feel confident in moving forward with the possible strategies highlighted in the Specific Marketing Goals & Strategies section. The message that The EDGE needs to communicate in the very short term should be one about creating successful partnerships to effectively grow the local economy by giving each other the tools needed to achieve “The All-American Dream” in an “All-American City.”
Competitors: Local competition: ■ ■ ■ ■ ■ ■
Innovation Depot Auburn Business Incubator Center for Entrepreneurial Excellence The Small Business Resource Center Alabama Innovation & Mentoring of Entrepreneurs Pike County Economic Development Corporation
Non-local competition:
■ Invent Help ■ Quicken Loans
Indirect: Any business hiring prospective entrepreneurs
Primary Research: According to the data, over 5,300 accounts were opened or up-dated--not to be confused with renewed--in Tuscaloosa during the 2012 calendar year. Although the data collected on new business license accounts in Tuscaloosa, Alabama from 2008 to present was provided in a format (exhibit 1) that does not lend itself well to traditional analytic practices, we can still conclude with reasonable certainty that there has been a general trend of overall growth since 2008 (figure 1), with particular emphasis on the Contractor category of the new business market (up from 21% in 2010 to 46% in 2011 and 35% in 2012). Other categories of notable growth are the retailers (up from 12% in 2011 to 18% in 2012) and “service providers,” which, including Services, Professional Services, and Personal Services, make up 23% of the total market (up from 21% of the total market in 2011). These three segments (retailers, service providers, and contractors) make up approximately 75% of the license categories listed in the New Account data for 2012 (up from 66% in 2010 and down from 79% in 2011). It should be noted that many of these new accounts were opened by either local businesses extending their products and services or existing businesses moving into the Tuscaloosa area for the first time. Not all new accounts belong to new or emerging businesses. Please see the Appendix for Figures 1-6 and Table 1.
SWOT Analysis Strengths: ■ ■ ■ ■ ■ ■
First incubator in the area outside the scope of science and engineering. Access to University of Alabama resources Access to Tuscaloosa Chamber of Commerce resources Support from Regions Home to AEI & SBDC Tax incentives
Weaknesses: ■ Brand identity, marketing ■ Undefined funding
■ ■ ■ ■ ■
Organizational concerns (due to earlier than expected opening) Location Small Competing visions among board members Incubator
Opportunities: ■ ■ ■ ■ ■ ■ ■ ■
Opportunity to expand brand connection with UA. Strengthening of resources such as professors and students for consulting work Growth in Tuscaloosa population Growing Tuscaloosa economy Leveraging Student start-ups in a college town Growth of the UA student body Ron Davis-AAMA connection Investing in the next phase of the EDGE to provide leading edge technologies, products and services to clients (video-conferencing, 3-D printing, etc.) ■ Resource alignment ■ Potential synergy created
Threats: ■ ■ ■ ■
Decreased growth trends in entrepreneurs nationwide Alabama one of lowest entrepreneur percentage in US Weak economy Ambiguous and overlapping messages from similar entrepreneurial centers (AEI, APC, SBDC) ■ AIME and other potential local incubators ■ Financial cost for resource support of Edge clients. ■ Intellectual property legalities
Specific Marketing Goals & Strategies Increase awareness of the EDGE o o o o
Newspaper ads Radio ads Flyers Mail out pieces § Addresses for new businesses provided via mailing list (Exhibit 1)
o Newsletter (electronic or mail out) § electronic would be cheaper
Promote the new location of the EDGE o Have an advertised ribbon cutting ceremony o Have some type of weekly or monthly event at the new location o Get a story written about the new location in Crimson & White or Tuscaloosa News
Increase awareness of the services offered by the EDGE o Build a specific and easy to understand breakdown of the service offered § Currently, it is difficult to find exactly what the EDGE does
Get success stories out to the public o Use website and social media as a platform for getting success stories to the Public o Have a “Business Spotlight of the week” where you talk about one of the incubated businesses
Build a brand o New logo o Get involved with specific types of events such as technology conferences, career fairs, and entrepreneurship gatherings
Increase social media presence o o o o
Offer free stuff for likes on Facebook or Twitter follows Promote twitter on Facebook and vice versa Set up weekly competitions of question sessions Use a service such as Constant Contact, Mail Chimp or other e-mail marketing service
Get new website with improved information and functionality o Have a student competition to build the website where winner gets free incubation space or other services o Hire outside company to build it o Use free website builder such as WIX
Financial Estimates
Print Media Local Newspaper Ads 1/8 pg. print Pre-print insert Flyers Postcards Electronic Media Search Engine Optimization (SEO) Custom Website Newsletter Social Media Campaign(s) Misc. Ribbon Cutting Ceremony Trade Fair Attendance, Displays, & Materials Press Releases Logo Re-design
$163.80* $120.00/thousand* $123.08/ thousand ** $82.85/ thousand ** $750+/month*** $1,000 - 3,000*** N/A N/A TBD TBD N/A $300 - 1000***
*Based on the 2013-2014 Crimson White Media Kit **Based on estimates provided by UPrinting.com ***Prices vary by project and scope
Assessment of Marketing Activities Outcome 1: Increased awareness of The EDGE Measures: • • •
Number of e-newsletters Number of Facebook/Twitter posts Number of social/networking events & speaking engagements
Assessment: • • • •
Number of participants at events Number of walk-in visits Number of Facebook likes and Twitter followers Number of website page views
Outcome 2: Increased awareness of incubated businesses and coworkers Measures: •
Number of times incubated businesses and co-workers are featured in e-newsletters
•
Number of times incubated businesses and co-workers are featured in Facebook/Twitter posts
Assessment: • •
Number of Facebook likes and Twitter favorites/re-tweets on posts related to incubated businesses Number of Facebook likes and Twitter followers on the pages of incubated businesses
Outcome 3: Promoted services are being realized Measures: • •
Number of times non-incubated businesses are matched with specialists (i.e. “business coaches”) Satisfaction level of incubated businesses (1-10)
Assessment: •
Feedback loop: o Internal survey among incubated businesses. o Post-visit survey of businesses looking for assistance (via email).
Appendices
Figure 1
Figure 2
Figures 3 – 6
Table 1
Exhibit 1