Incubators

Business incubators have been around since the 1950s. Typically attached to universities, these entities offered a proving ground, with back-office resources, for fledgling entrepreneurs.

Now a new breed of incubator, catering mainly to technology types, is springing up all over the country. These startup hubs offer expert mentorship, resources like office space and legal counsel, and even seed money—typically in exchange for a small amount of equity in tiny (or theoretical) companies. More importantly, early-stage investors are paying close attention.

What it is: Business incubators are organizations geared toward speeding up the growth and success of startup and early stage companies. They’re often a good path to capital from angel investors, state governments, economic-development coalitions and other investors.

How does it work?  Incubators vary in their strategies. Some are located in an actual physical space meant to foster networking among entrepreneurs and their coaches. Others operate on a virtual basis.

Incubators sometimes call themselves accelerators instead, often when they’re geared toward jumpstarting businesses that are more developed.

Many have potential capital to invest, or links to potential funding sources. There’s access to services such as accountants and lawyers — not to mention invaluable coaching and networking connections through the staff and other entrepreneurs at the incubator.

Find out how an incubator can work for you.

Before it is possible to understand the different strategies and marketing tools that are available, it is important to identify what online marketing is and how it promotes a business.

Online marketing, which is also called internet marketing or online advertising, is any tool, strategy or method of getting the company name out to the public. The advertisements can take many different forms and some strategies focus on subtle messages rather than clear-cut advertisements.

But, the way that it promotes a business is simple: it builds up the company reputation by increasing its ability to be found online. A large number of potential customers browse the internet, look for information or simply enjoy their favorite pastimes with an internet connection. By taking advantage of the online tools and resources, it is possible to get the company name out to the public and encourage potential customers to look further for information.

When it comes to online marketing strategies, website development plays a crucial role in your ability to reach your target audience. The reason is simple: potential customers look for information, products or services that you provide on your website.

A website provides an online presence that allows customers to find out more about your company, your services and the type of products that you sell. Putting a website together these days is fairly simple, cost effective and absolutely essential to having a business these days. Free websites services exist, but come with a number of limitations (Watch for our upcoming post: “Why that free website isn’t what you want”).

Template websites offer the luxury of getting a professional website up and running at a reduced cost and turn-around time. Business owners choose a template and then create content and color schemes that match their business.

For those with the budget, custom websites are a great option. Depending on the needs of the company, a complete custom solution, from the design to the functionality of the site, is created. This process requires more time but has almost no limitations to what can be provided. Custom websites can range from approximately $5k to more than $100k.

Offline marketing strategies tend to be more expensive than online ones, requiring businesses to develop all-encompassing plans before implementing campaigns. Typically, a company must first decide exactly who they are trying to reach – the target demographic for either new or existing services – and then determine what media channels can be used to reach them.

Market research data can be purchased to bring companies up to speed on the media consumption habits of their target audience. If potential customers tend to read certain magazines, then marketers can strategically place ads in those publications. These ads typically feature consistent messaging about the company as well as brand imagery – the same slogans and logos are used to build familiarity with potential customers.

Recently, offline marketing and online marketing strategies are more frequently used in collaboration with one another. Many companies treat their websites as the central portals of their marketing efforts. Most consumers who want to know more about a company’s products or services will at some point visit the website for information, and contact details. The principle theme between the offline and online marketing partnership is to make the company’s website better known.

Behind the ad campaigns and creative promotional materials, the basic intention of any offline marketing strategy is to increase online traffic, overall sales, and profits. There are various strategies companies can employ to achieve these results, including:

• Direct Mail – “Snail mail,” as it’s commonly referred to, is one of the most commonly used mediums in offline marketing campaigns. Marketers can purchase mailing lists based on demographic data that include people most likely to purchase their products. For example, an online pet food store may order lists of people who purchase pet supplies or medicines online.
• Discount Pricing – Another way to drive customers directly to a company’s website is to offer coupons online. Department stores, grocery stores and countless other companies frequently advertise sales of their products and services in local newspapers and advertising inserts. Rather than including coupons in the newspaper, these ads can instruct customers to print their coupons from the company’s website. If they want a discount, they have to make a stop online.
• Loyalty Programs – To build repeat customers, companies of all sizes often rely on offline loyalty programs. These programs encourage customers to patronize businesses more frequently. For example, a sandwich shop may reward customers with a free sandwich on their tenth visit. Or a professional baseball team might offer a free stadium tour to fans that purchase ticket to 10 or more home games.

Just like any type of business, e-commerce businesses need to have a fully fleshed strategy. The first step is to set goals. Do you plan to increase revenue from existing customers? Gain new customers? Increase the average order value? Sell through new channels? Lower prices? Once you have figured out your goals, the next step is to set a plan.

Your first step is to conduct a SWOT analysis and assess the strengths, weaknesses, opportunities and threats of where your business is. What does the market look like? Where does your business excel, and where does it falter? Review your entire business, not just segments of it. Evaluate external opportunities, because this is the often the primary place to invest time and money. Be honest with yourself when analyzing weaknesses and threats, or else the analysis will not be helpful.

After the SWOT analysis is done, see how it fits into your overall vision. Where do you see your business in five years? In 10 years? This will help you set business objectives for the current year, where you set objectives for sales, profits, customers, traffic, new systems, and new staff. After the objectives are set, a strategy can be put in place, either by you or by a hiring an e-commerce consultant.

In addition to having a strong business strategy, it’s important to have a basic understanding of e-commerce law. There are different legal and financial considerations, especially with privacy, security, copyright, and taxation. The Federal Trade Commission (FTC) regulates most e-commerce activities, including the use of commercial emails, online advertising, and consumer privacy. Through any average day, businesses collect and retain personal information from their customers — information that is often sensitive. You are subject to federal and state privacy laws, depending on the type of data that you collect.

There are also online advertising laws that protect consumer privacy and ensure truthful marketing practices online. As an e-commerce business, online advertising is a major part of your strategy. Over the past decade, federal and state governments have passed new online advertising laws — it’s important to be familiar with these.

In addition to protecting consumers from data leaks and misleading online advertising, digital works are also protected on the Internet via the Digital Millennium Copyright Act (DMCA). There are a number of provisions that e-commerce businesses need to be aware of, including copyright infringement liability and a service provider’s responsibilities.

Like any digital technology or consumer-based purchasing market, e-commerce has evolved over the years. As mobile devices became more popular, m-commerce because its own market. With the rise of Facebook and sites like Pinterest, f-commerce and s-commerce (social commerce) have become the newest versions of e-commerce. As the market changes, businesses must also change to stay relevant and understand business opportunities out there in the e-commerce world.