Add Sponsorship to your Marketing Toolbox

As a business owner, you understand that advertising is an investment in your business, not simply an expense that must be paid. Advertising budgets, no matter how robust, do need to stretch a long way – over 52 weeks a year, through a variety of tactics and platforms, and perhaps even across multiple target markets. Small businesses in particular are looking for very efficient uses of their marketing dollars. One of the valuable tactics that I see small businesses regularly overlook is sponsorship.


Sponsorship is often associated with charitable donations. Certainly your business can be a good corporate citizen and support worthy causes in sports, arts and the humanities by becoming a sponsor - in this case, the definition of sponsor really being “donor”. Sponsorship is also associated with big business – for example, McDonald’s sponsoring the London 2012 Olympics. It absolutely works for mega-ventures in the international market, but that doesn’t mean it can’t work in a small business context.

There are appropriate opportunities for small business owners to sponsor activities conducted by organizations with like interests and target markets, for mutual benefit. These are opportunities where your business name/logo will be plastered all over event invitations, signage, programmes etc., essentially advertising your business to all of the (potential) attendees. Many sponsorship opportunities allow you to make a personal appearance at the event with a trade show display, two minutes at the microphone, or simply getting face-to-face to network with their (your soon-to-be) clients. Many offer the flexibility to negotiate terms most suitable to you. Given the right organization, event and target participant, you can build a name for yourself as a business that is a leading expert in your field, personally interested in your customers’ satisfaction, and an active leader in your community. We’re talking here about building your brand. Few paid advertisements can accomplish all that!

Think about the demographics and behaviour of your target market(s). Where do they gather? How can you be in that space? Seek out the organizations that already bring customers together and investigate sponsoring their initiatives. Your industry association, your suppliers, your local networking associations (including The Brampton Board of Trade) etc. will likely have formal or even informal sponsorship opportunities. If they are not blatantly published, pitch your own ideas to those organizations you want to partner with!

If sponsorship is new to you, consider sponsoring SBEC’s “Pledge to Prosper” initiative as a gentle introduction; sponsorships start at the small business price of just $75! Visit www.brampton-business.com for all the details and contact me to discuss.

Strategic Alliances Create Early Growth

A “strategic alliance” is an agreement between two or more companies to conduct a certain aspect of business in a mutually beneficial way. Successful strategic alliances can help small businesses to increase the size of their product/service offering, extend their market reach, improve productivity or create that crucial competitive advantage. Ultimately, this means opportunity for faster-paced launch and earlier growth, without a burden of added capital or operating costs.

Like any business model, a strategic alliance needs research and careful planning. A successful alliance needs to fit your own business profile. Here are some key considerations:

· Create a list of desired partner attributes
· Source out potential partners with a compatible vision and similar goals
· Choose a partner who is focused and well-established
· Choose a partner with a compatible brand/reputation
· If competing in the same market, consider the affect on your market position
· Consider future directions and whether they merge or diverge
· Determine the timing – one time project or long-term relationship?
· Create a contract, including precise expectations you have established together
and clear terms of payment
· Create a systematic communication method
· Create a clear exit strategy
· Put everything in writing

Finally, not only will you need to seek out a desirable partner, but you need to be a desirable partner to someone else. This has to be “win-win”, not “how can you help me?” Your own business will need to be in tip top shape with an up-to-date business plan, established procedures, a good track record with clients, professional branding and reputation, and a robust marketing strategy. If these foundations are in place, you may find other companies are seeking you out as a strategic partner. The Brampton Enterprise Centre has a plethora of resources to support you as you prepare to develop a strategic alliance. Call us at 905-874-2650 or visit www.brampton-business.com

Sorry Folks, There are No* Government Grants

In ancient Greek mythology, "Cassandra" was the bearer of bad news. True to my namesake, I have to tell you, there are no* Government Grants for small business. *At least, not in the GTA/southern Ontario, not for start-up purposes, not for the 95% of small businesses types that I meet with, and not grants, as in free money you don't have to pay back later.

Do yourself a favour, and get over thinking that someone is going to hand you the money to start your business. Start saving, scale down the start-up vision, get friendly with your very rich, old uncle or make some other adaptation in your planning. I've been doing this job for 9 years, and this has been true all this time, and for at least a decade before that. And there is nothing on the horizon over the next 18 months.

Let me tell you what there is:

• Incentives, once your business is established (ie. subsidies and rebates on some specific expenses)
• The SBFA - Small Business Financing Act - where the Government of Canada will "underwrite" your bank loan so that if you can't pay it back, the government will cover 85% of it, taking most of the risk away from the bank; this applies only to purchases of land, buildings or heavy equipment. Inventory, payroll, administration expenses and other monthly operating expenses do not qualify.
• Support programs for tourism, farming and other specific industries rare in Brampton

Please, do not get lured into advertising that promises millions of dollars in and easy access to government support...particularly if you have to PAY to get hold of the information or if there is a fee to apply. And don't be fooled by pretty red and white graphics that look something like the Canadian flag - this does not mean it's a Government of Canada website.


Here are the safe places to check into government funding:

Province of Ontario:
http://www.2ontario.com/software/government_programs.asp

and

Government of Canada:
http://www.canadabusiness.ca/eic/site/sof-sdf.nsf/eng/Home.