As a small business owner, there are likely a lot of people, institutions and groups that target your business as a potential sponsor of their group or event. Whether it is a local youth sports league or a concert in the park, groups target small businesses because we have 1) a built-in audience, and 2) the perceived financial wherewithal to help underwrite the event.

 

But even though they want you, the question is, do you want them?

 

The answer should probably be yes, for six very good reasons:

 

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1. It creates goodwill: Goodwill is one of those things in business that is important, vital even, but a little amorphous. Essentially, it is the reputation your business has in the community generally, and among your customers specifically.

 

The value of sponsoring an event is that it boosts the status of your business. Not only do people like and appreciate event sponsors, but additionally, they think more highly of a business that can sponsor an event. Additionally, tying your business to an event will co-brand your business with that event.

 

The upshot is that your business reputation should increase by sponsoring an event.

 

2. Event sponsorship can lead directly to sales: A recent survey by the Event Marketing Institute found that 74 percent of consumers are more likely to purchase a product after they were exposed to the business from a branded marketing event.

 

And here is anecdotal evidence: When I first moved to where I live now, I went to an event. One of the sponsors had a food truck there. Mmmm, delicious! We are still eating at their restaurant 15 years later.

 

3. Increased visibility is always good: 99 percent of all businesses are small businesses, but then again, you don’t need to be told you have a lot of competition; you know you do. An additional benefit of sponsoring an event is that it helps you get noticed. And especially in these days of Short Attention Span Theatre, getting noticed is more important yet tougher than ever.

 

Sponsorship can be the answer.

 

There are a lot of people who 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 of an event, that impression will likely be a positive one.

 

4. It can help you hit your target market: One of the important things when deciding whether to help sponsor an event is determining if the event caters to your intended demographic. If it does, if you choose wisely, then your sponsorship puts your business directly in the sightline – literally – of your target market, and how great is that?

 

5. Sponsorship can be a great lead generation tool: Sponsoring events should consist of more than just plastering your name on a program. A good sponsorship package should include some sort of lead generation mechanism. It could be

  • An email opt-in form
  • A business card collection system
  • A networking event

 

Whatever the case, sponsorship can and should lead to warm leads.

 

6. Sponsorship can also generate partnership opportunities: By being out there in the community, by being more visible, and by co-branding with the event, you are not only exposing your business to more potential customers, but equally, you are more visible to other businesses and professionals. Who knows what opportunities may come from that? Likely some very good ones.

 

The bottom line is that sponsoring an event doesn’t cost, it pays.

 

Read Next:

Tips from a Pro: How to Score a Small Business Touchdown at a Local Event by Dhani Jones

How to Host a Successful Event for Your Small Business by Steve Strauss

How Event Sponsorship Can Benefit Your Small Business

How to Be More Effective at a Networking Event

 

About Steve StraussSteve Strauss Headshot New.png

Steven D. Strauss is one of the world's leading experts on small business and is a lawyer, writer, and speaker. The senior small business columnist for USA Today, his Ask an Expert column is one of the most highly-syndicated business columns in the country. He is the best-selling author of 17 books, including his latest, The Small Business Bible, now out in a completely updated third edition. You can also listen to his weekly podcast, Small Business SuccessSteven D. Strauss.

 

Web: www.theselfemployed.com or Twitter: @SteveStrauss

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Bank of America, N.A. engages with Steve Strauss to provide informational materials for your discussion or review purposes only. Steve Strauss is a registered trademark, used pursuant to license. The third parties within articles are used under license from Steve Strauss. Consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice.

 

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