Small business is defined as a privately owned corporation, partnership, or sole proprietorship that has fewer employees and less annual revenue than a corporation or regular-sized business.
As a small business owner, it’s likely that you’ve received requests for sponsorship from individuals, organizations, institutions, or groups. It might be a youth sports team, a park concert, or an online event.
Groups assume small businesses have an audience already in place and the resources to support an event financially.
Do you want them even though they want you?
There are six very strong reasons to say yes, including an increase in your visibility and good karma in your community. More significantly, sponsorships can result in collaborations, revenue, and leads which is more reasons small business should adopt it.
1. Sponsorship creates goodwill
Even though goodwill is crucial, it can be a little ill-defined. In essence, it refers to the standing of your company both generally and among customers especially.
People enjoy and value companies that can sponsor events. Sponsorship will, in most situations, enhance the reputation of your company and co-brand it with the event.
2. Sponsorship can lead directly to sales
Consumers are more likely to purchase a product after they were exposed to a business through a branded marketing event.
Here’s some anecdotal evidence: I went to an event. One of the sponsors had a great food truck there. We are still eating at the sponsor’s restaurant 20 years later.
Let’s stick with the restaurant as an example. You own a restaurant, and you have the chance to sponsor a junior or adult sports team. If you develop a relationship with the players, they are more likely to come to yours when they are hungry and seeking a place to eat after practice or a game.
3. Increased visibility is always good
Especially in these days of short attention span theater, STANDING OUT is more important – albeit tougher – than ever. Sponsoring an event helps you get noticed.
Most people have never heard of your business. But they will if you sponsor an event, and even better: If their first exposure to your business is because you are a sponsor, that first impression will be a lasting, positive one.
4. It can help you hit your target market
For small business, when you think about sponsoring something, consider whether the team or event caters to your intended demographic.
If it does, your sponsorship puts your business directly in the sightline of your target market. How great is that?
5. It can generate great leads
Ideally, sponsorship should consist of more than plastering your name on a program or website. A good sponsorship package should include some sort of lead generation mechanism. This could be an email opt-in form or a special networking event.
Whatever the case, sponsorship can and should lead to warm leads in small business.
6. Partnership opportunities
Being active in your community, whether online or off, exposes your company to more potential clients and positions you in front of other companies and professionals. Who knows what chances might arise from that? Probably a few excellent ones.
In the end, supporting an event pays more than it costs.