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Using Sponsors and Advertising to Finance your Business

Advertising and Sponsorships for Funding from The Startup Garage

Sponsors and advertising are a good means of generating additional revenue for companies in need of cash.  This option is particularly popular for internet companies with available space on their websites.  The amount the sponsorship can be sold for is highly dependent on the market reach of your company – that is the number of people likely to see and respond to the advertisement. Highly trafficked website sites are valuable to sponsors given the number of potential views and the ease with which the potential customer can be directed to the sponsor’s website.

Companies can also sell physical advertising and sponsorships space on company property or company produced materials, such as a building, flyers, or placemats.  Securing advertisers or sponsorships typically involves marketing directly to potential sponsors. Having market statistics, including search engine traffic and monthly viewing statistics, are essential in getting sponsors on board and negotiating a good price.  An appropriate sponsor for your company offers a related product, but the product should not be in direct or indirect competition with your own product.  Do your research to find and approach potential sponsors you believe may be a good fit and approach them directly.


Whether you have a question about using Sponsors and Advertising for Financing, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!