In an ideal world, all sponsorships would be for millions of pounds and would earn you thousands or millions of new customers, but for a small business this is very unlikely. But even the smaller sponsorship deals to local charities or niche events could help promote your company and target find your target consumer market.

Who/What to Sponsor?

You need to choose your sponsorship deal well, so put thought into your long and short term objectives before you make a choice.

Short-term objectives could be as simple as reinforcing your company’s image and attracting new customers, but in the long-term, you may consider continuous sponsorship of a certain event. This would work as an effective branding tool to make your customers familiar with your business.

Whether you have a particular charity of event in mind, or are waiting to be approached on behalf of a certain event, charity etc, you should ask yourself things like:

1) Will this help you reach your target market?
2) Roughly how many potential customers will you reach?
3) Will you be the only, or one of many sponsors?
4) Does the charity/event have good local or industrial reputation?

The Money Side

You need to set yourself a budget before negotiations if you decide to sponsor a charity, event etc, in order to remove any unreasonable expectations on either side of the deal. Make sure this plan is realistic and well thought.

Internal budgeting is also important if you want to make the most of your sponsorship. Things like publicity, entertaining and promotional products are essential if you are going to make the most of your sponsorship opportunity.

Between your business and the event, charity etc you are planning on sponsoring, you need to make a combined marketing plan. You should ensure that your firms logo and literature are made publicly available on all information about the event or charity.

Other things you should consider are things like:

1) Sending out a press release focusing on the event/charity you are sponsoring, but also being sure to mention our business.
2) Organisation of appropriate promotional products (eg, mugs, pens etc)
3) Local advertisement so people know of your involvement with the event
4) A competition could be a good way to drum up some interest in your firm
5) Invite existing customers/suppliers to an event
6) Use the sponsorship as a way to network your company and follow up these connections

What Do You Think?

What else should companies considering sponsorship bear in mind? How else can other small businesses maximise the potential of the event/charity etc they are sponsoring? Leave your ideas here.

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