When Technology Meets Desire Something Powerful Happens

 

Creating and sustaining businesses in rural communities has become an even greater challenge as a result of technology. Most businesses must make substantial investments in technology, while pressures created by competition are now multifaceted. While there appear to be many opportunities for new businesses and access to markets not earlier imagined, it is still difficult for them to survive much beyond the idea phase. The function of the Pratt Telecommunity Center's eIncubator is to address these issues in a straightforward, common sense approach. That first step is to realize that in today's world there is an opportunity to incubate business both physically and virtually, and in many instances the same issues must be addressed. The second step has been to create an environment in which these business could succeed. This has meant much more than simply saying it, but actually creating an climate in which access to a mix of customers is commonplace. The last step has been one of patience and the realization that success means a new beginning each time. The purpose of the incubator is to grow a business to the point in which it can standalone. When it does, it moves from the incubator and the incubator must begin again with another business.

The Pratt Telecommunity Center has carefully structured such an incubator. One in which a physical business is given the opportunity to succeed and a virtual business is afforded similar support and the same opportunity. For some of these businesses it has also included the mix of physical and virtual incubation to create that success. It is with this flexibility and purpose in mind that we would like you to encourage bringing your business or startup into this environment. Below is a description of the services provided and a comparative cost breakdown for these services.

Miss America 1997 Tara Dawn Christensen participates in an online chat with people from around the country from the Center during the 2000 Miss Kansas Pageant. Tara Dawn was also promoting the release of her first CD during the chat.
Physical Business Incubator
The Pratt Telecommunity Center is one of the first, and most comprehensive business incubators located in a rural community. The Center is located on the second floor of a remodeled, 1917 department store. The 10,000 square foot facility includes a technology center, conference/meeting rooms and more than 20 office spaces configured into an open office environment. Along with the facilities, the Center's technology includes basic computer access, high speed Internet access, networkable spaces, document imaging, multimedia production, satellite downlink capability and interactive videoconferening.

But that's only part of the secret. Imagine you were a small business, maybe just starting out. What would be your greatest hurdle? Getting customers into your place of business? The cost of hiring someone to answer the phone, or worse, having noone answer the phone when you're gone? The cost of buying a computer, and not always knowing how to use it correctly? Maybe it's the difficult decision to cut corners and work out of your home, but lose the ability to be next to other businesses. When 90% of all businesses fail in the first three years, it's not hard to imagine the many causes. Well how about putting your business into the most likely environment for it to succeed. At the Center we've tried to anticipate your need to reduce costs and assist in maximizing customer contact.

How? At the Center you rent an office space. With that you get access to reception services and a shared phone system. Need a computer, well use ours until you feel comfortable and your business can afford it. You won't be alone, you'll be next to other businesses, meeting with them over coffee, always just a few feet away from a potential business opportunity with another business. We know it's tough to be in business, and we also know that being in a fun, supportive environment, surrounded by interesting businesses and people makes it easier.

But that's not all. You won't be the only one working to get customers to your door. Each business in the business incubator is bringing in customers and one of them may become one of yours. But let's not stop there. The Center is the primary location in southcentral Kansas where people come to use technology. They come for computer classes, they come for educational programs delivered over satellites and interactive videoconferencing, they meet on their own, and they come to have their businesses become more technology oriented. And they all come to the same 10,000 square feet where your business is located. These are business people, health care professionals, lawyers, teachers and community leaders. Most are from the area, but many are from throughout Kansas, including Topeka, Wichita and Kansas City. Nearly everyday, someone walks in the door at the Center with one purpose and leaves meeting a new business. Maybe it will be yours. All for the low cost of an office.

Does it work? Already two businesses have out grown the business incubator. Each now has an established customer base, the ability to take on additional overhead, and an enhanced potential for success. We still see them. They come by when they need help, want to do more with technology, and just to touch bases with the others still in the Center. But they've made room for that next business that needed the help and wanted to take advantage of the unique atmosphere.

The Center Typical
Office Space $2,000 to $3,600 $2,400 to $3,600
Receptionist Included $9000 plus taxes
Telephone $250 $850
Fax Included $920
Computer Included or nominal fee $2,000 to $3000
Non Office Furniture Included $500
Advertising Traffic is free $3,000 or more
Business Networking Working together is expected $500 or more
Annual Total $3,850 $21,370
Cost for a bad business decision $17,520
eBusiness Incubator
While it is unique to see a physical business incubator located in any rural setting, it's even more unique to have an incubator that is developing business to take advantage of the Internet. Interestingly, the issues faced by a eBusiness incubator is much like the issues faced in a physical incubator. The opportunity is first in seeing the similarity and, second, in learning that it is this physical/virtual connection that will prove most successful. The recent toppsie turvey world of technology stocks and failures of dot.com companies has only tended to emphasize the opportunity.

The Pratt Telecommunity Center tackles the creation or expansion of business to the Internet, just as it does with the creation and expansion of a business that has physical facilities. The eBusiness incubator has been established within the physical facilities of the Center, but has and continues to work with businesses who reside in the Center and those who have never stepped foot in the facility. These eBusiness ventures face similar issues of any starting business. Can I get customers to come to my business, how do I reduce my costs, especially during the initial months, and how do I get access to the expertise needed to develop and manage my eBusiness, take orders, capture billing, and maintain relationships with these customers.

Much like the physical business incubator, the Center's eBusiness incubator has created an environment over the last three years to enhance the opportunity for success. For instance, the physical incubator includes meeting/conference rooms and the Center actively attracts people into those facilities in part to create traffic for the businesses located in the facility. The Center has been even more successful at creating these customer traffic activities using their Internet presence. The Center, through www.futurekansas.com, is still the only major producer of live and almost live events on the Internet in Kansas and across the country in a rural setting. More than 300 events have been produced, ranging from scholarship pageants, sporting events, events with local flavor, regional events, events with statewide significance, and even multistate events. These events have and are being done for two reasons. First, it has generated interest in the Internet causing people to invest in a computer and Internet access. Second, once these individuals became users, these events continue to bring these people back creating the opportunity for the businesses in the eBusiness incubator a chance to capture these users as customers.

The eBusiness incubator also provides services for these eBusiness that would prove more costly if not done in a supportive incubator environment. eBusiness sites are developed through the Center, each having it's unique flavor at a cost that is a fraction of what it might cost to hire a similar capability in an urban community. Quality, though, never suffers. As a result of the Center's experiences on the Internet, each of these eBusinesses can create interesting ways to service and develop ongoing relationships with it's customers. This results in cost effective ways of directly contacting customers using the Internet. But the eBusiness incubator has also focused providing even some more fundamental and basic support. Many new eBusinesses are excited at the potential, but have little data to determine whether they will be successful. Consequently, costs such as those associated with the online capture of credit cards, are difficult for the new eBusiness to justify. These new eBusiness owners also don't have the technical background to manage this activity. The eBusiness incubator has supported this activity by managing the order and billing process for these businesses. This has proven valuable in two ways. First, the eBusiness owner is allowed to focuses on the delivery, manufacturer and promotion of a product or service. Second, the eBusiness incubator is as aware of whether the new eBusiness is succeeding as is the eBusiness owner. Both know when changes and new approaches must be tried.

One of the more interesting aspects of being in the eBusiness incubator is the diversity of the businesses. Many of the businesses are traditional businesses with a long history of a physical establishment; others are brand new and the owners are trying new things or providing products they've nevered marketed before; others are entire business communities creating online malls or downtown districts; and still others are networks of other types of entities, such as hospitals. The diversity has proven to create even richer knowledge throughout the eBusiness incubator and, at times, the ability to use one business to promote another.