Last Updated on December 22, 2022 by Selina Parker
You have an idea for a product, but you need money to get it. You could take out a loan or turn to venture capitalists, but finding corporate sponsors may be your best bet, but not every company can do it successfully. This article will show you how to find corporate sponsors and what they want in return for their investment.
What is a sponsorship?
Corporate sponsorship is a type of marketing in which a business pays to connect with a person, project, fundraising event, local businesses, and local organizations.
A frequent corporate sponsorship model involves nonprofit organizations collaborating with a sponsor corporation for their upcoming event. It is funding a project or program administered by the former in exchange for recognition. It means securing corporate sponsorships for your starting business is highly possible.
Why should you consider finding a corporate sponsor for your startup?
1. Opportunity for you to network with other professionals in the industry
Getting corporate sponsorships for your startup means you get help to make your idea a reality. Corporate support can provide you with the chance to boost your company’s image and credibility.
Potential customers will see how well-respected and successful your business is if it has sponsorship deals, which may lead them to consider doing business with you.
2. Provide a significant boost to your company’s revenue
When you have the backing of a corporation, you are getting the financial support you need and gaining access to more potential buyers. Increasing brand visibility means increasing your number of potential customers and closing more deals, resulting in more revenue.
3. Reach a large audience without breaking the bank
Because you are getting from sponsors and taking care of the technical aspects, you can save a lot of time and money and gain access to new audiences you might not have otherwise reached on your own. Rather than finding ways to market online or finding customers, you can spend that time bettering your business and finding more sponsors.
4. Increase customer loyalty
The corporate partnership will strengthen relationships with current customers and attract new ones. They will take your brand as more reputable because it has the support of a large corporation.
Customers are more likely to do business with you if they know that other people trust your company enough to sponsor it, which can help you reach your target audience and market fast.
5. Build on the idea of “co-branding.”
When two brands work together for a mutually beneficial cause, they engage in co-branding. This type of marketing is very effective because customers see both brands as trustworthy, boosting their reputations and customer loyalty.
By finding a business that does not compete with you for clients but rather compliments your company’s mission, having corporate partners will help you achieve this desired outcome.
Effective Ways to Finding Corporate Sponsors
1. Make a list of potential companies that has similar value to yours
The corporate sponsors you can get have a matching value as your company. You cannot get an agricultural company to sponsor a pet product company and vice versa. It would help if you found a business with the same values, so finding common ground is vital.
So, make sure you target a particular company by finding those with values that correspond with your own.
2. Determine what you have to offer a potential sponsor
No party should take and take for a lasting and successful corporate sponsorship. You have to determine what you are offering to a potential sponsor. If they are not getting anything in return, why would they consider doing business with you?
Offer something in return for their investment, whether access to your customer base, advertisement opportunities, an endorsement from you, or any sponsorship packages.
3. Prepare a robust sponsorship proposal
Once you have determined what you are offering and what your potential sponsor is looking for, put together a proposal that includes how much money you need or in-kind donations.
You can also provide them with promotional event materials like photos or videos that demonstrate why it would benefit them to work with you. The more prepared you are, the more confident you will appear, and your company will likely get sponsored.
4. Contact the company and ask if they are interested in sponsoring your startup
Now that you have prepared all the necessary materials, it’s time to contact the company and ask if they would like to work with you.
Send them a brief introduction of your business, why you think it’s an opportunity worth taking advantage of for their marketing purposes, and what benefits both parties will get out of this arrangement.
5. Set up a meeting
If you can have a face-to-face meeting with your potential sponsors, that would be the best way to seal the deal. Not only will you have an opportunity to explain further your business and what it is that you are offering, but they can also ask any questions they may have about your startup.
This meeting can also serve as a chance for both parties and board members to get to know each other better and see if there is potential for a long-term relationship.
6. Follow up with potential sponsors that don’t respond immediately
Persistence is an essential factor in finding corporate sponsors. If you send a proposal and don’t receive an answer directly, follow up with them after two weeks to check if they have had time to review your information and decide about sponsoring you.
It is also the perfect opportunity for you to ask any questions or address any concerns that may be holding them back from agreeing to work with you.
7. Contact other companies as alternate sponsors
Having a backup plan is always a smart move. If you find that it is not easy to find sponsors, perhaps the reason is that you have not yet reached out to enough companies for sponsorship possibilities.
Sponsorship dollars can be a precious asset to your startup, but you must go about finding sponsors the right way, and many companies that practice corporate philanthropy offer sponsorship.
Targeting businesses with values similar to your own, preparing a robust proposal, and setting up meetings gives you the best chance of success in finding corporate sponsors. Try using this method today.
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ABOUT THE AUTHOR
“What began as a life and career coaching services company to aide entrepreneurs through the early-stage challenges and tough transformations of starting a social venture has evolved over the years to include mergers and acquisitions, organizational consulting, and business growth advisory services to mission-driven organizations that strive to improve access to basic physiological, safety, and security needs while increasing their profit margin. Clients include founders and organizations with the purpose of addressing deficiencies in delivering quality healthcare and mental health services, sufficient employment, access to clean water and air, safe shelter, adequate food, and more.”