Start-up Entrepreneurs' Blog

Part 2 – Preparing for Sponsorships

September 8, 2011

Many activities can be related back to the basics of starting a new business. Sponsorship is no different. It still comes down to knowing who your customer is, in this case, the sponsor and understanding your customer’s problems and how you can help solve them. Like any other business, it then comes down to promoting your group and making sponsors aware of your organization – in a nutshell, creating demand. Finally, it’s capturing that demand in sponsorships and then delivering on what you promised your customer.

So, start by determining what it is you have and what you can offer to sponsors.

Doing Your Homework

First, you need to know your organization and audience.  What is the profile of your organization or team members?  You’ll want to share these facts and figures with your potential sponsors.  It’s not just about how old they are or where they live, but also what their interests are and why they participate in your group? Do some brainstorming to identify the benefits of supporting your group.

Second, once you know the facts and figures, determine which potential sponsors are interested in those target markets and develop a prospect database of businesses to approach.

Third, attracting sponsors is a sales process and like any other sales effort, you need to find the right sales person in your organization that can approach potential sponsors and effectively present your proposal. If you don’t have anyone internally then you may want to consider outsourcing this effort. Despite the facts and figures, most sales have an emotional appeal.

Keep in mind that when a business gives your group funding, it is not free money. It is not a donation. Make sure you deliver on what you have promised and make sure someone is assigned to interface with the sponsors and keep them up to date on your group.

Are You Ready for Corporate Sponsors?

Don’t jump in just yet. Next, do a reality check to see if your organization is really ready to for corporate sponsors.

• Do you have established communications in place so that you keep in touch with your members, audience, fans and stakeholders through e-mail, a website, social networking, events, newsletters, conferences, media or advertising?
• Do you have marketing materials such as press or media kits ready for your group?
• Have you worked with corporate sponsors before? Do you have references from corporate executives about the value of your organization?
• What is the competitive environment like? Are other organizations similar to yours getting corporate sponsorships?
• To gauge the effort involved in reaching corporate sponsors and meeting face-to-face, create a list of companies headquartered in your area. What do they produce, and to whom do they sell? Are there cross-promotions you can work up that will help them sell to one of your existing sponsors or team up with an existing sponsor?
• Do you know what how the funds are going to be used? Some sponsors want to earmark specific areas instead of just generic support.

Making the Right First Impression

Your proposal (and cover letter) will have to fight for attention among the droves of other proposals. This is your competition and sponsors may receive proposals on a daily basis. Keep your write up simple and make it at least a page or two. Hiring a freelance marketing person or copywriter to review and edit your proposal may be well worth the money. These people can easily be found on www.elance.com or www.guru.com. Here are some tips to write a winning proposal.

• Write a headline that is direct and can sell itself.
• In writing your proposal, state the project or event at the beginning. Be clear in explaining what your project is and state its purpose clearly.
• Explain clearly whom your project is going to target in the public.
• Type of Sponsorship you seek – describe the type of sponsorship you need either product or financial sponsorship
• Outline how the sponsors will benefit.
• Introduce your organization and formally describe what your group is all about and why you are embarking on the project.
• Highlight when the event or project for sponsorship consideration is scheduled to take place.

Other Sponsorship Resources

For additional information and help on sponsorships, check out these resources on the Internet. There are two excellent books on sponsorships: “Made Possible By Succeeding with Sponsorships” by Patricia Martin and “The Sponsorship Seeker’s Toolkit” by Kim Skildum-Reid and Anne-Marie Grey. 

The Sponsorship Insights Group (www.sponsorshipinsights.com) hosts the largest online network for sponsorship professionals. The community best represents the entire sponsorship community – agencies, brands, properties, buyers, sellers, activators and other interested parties.

Read Part 1 – How Sponsorships Can Help Your Start-Up Find Funding and learm more about  on why you should consider sponsorships as a way of funding a start-up, event or project.

Filed under: From Concept to Start-Up,Start Up Funding

Tags: corporate sponsorships, seeking sponsors