In an economic climate proving difficult for everyone, managing a cultural business becomes all the more challenging. Some describe it as next to impossible for art groups big and small to attain business sponsorship. However, do not always look on the gloomy side of the picture. Equipped with creativity and sound information, nothing is impossible.

Many arts administrators are only too well aware that seeking business sponsorship entails a challenging and laborious process and crossing many hurdles. Once a small mistake is made, the whole project may be in jeopardy. The following are some cautionary tips to overcome these obstacles.

Fund-raising Warriors

In general, large art groups have their own development departments to solicit sponsorship. However, manpower is usually very limited, a major constraint. Smaller organisations have even less support and all members of the staff are involved with fund-raising activities.

To be a successful Fund-raising Manager for your art group, you must appreciate the art form you are promoting and be knowledgeable about the creative process. You also have to ask yourself: Do I have good inter-personal and communication skills? Do I possess good managerial skills, great stamina and a positive attitude?

Business Sponsorship is Business Exchange

To obtain business sponsorship, you must first be knowledgeable about it. In this way, you will not miss any opportunity to get sponsored. Sponsorship opportunities are not limited to the provision of funds. You may also receive product sponsorship (e.g. music equipment), service sponsorship (e.g. credit card booking service), or other benefits (e.g. product and service discounts). The possibilities are limited only by your imagination.

Before you take action, be fully aware that business sponsorship is a business exchange that involves payment and reward. To create the win-win situation, consider what benefits the company will derive from the sponsorship. Thus, you can identify what you have to offer for the prospective sponsor.

Approaching a Prospective Sponsor

• According to a famous Chinese martial arts tactic, knowledge of yourself and of the other party guarantees victory. To know what is on the mind of the sponsor is the secret of success.
• The first step is to set your target. Compile a list of prospective sponsors from the records of related organisations and other art groups.
• Narrow down your choices and target your approach on high potential organisations. Study the annual reports, business information and other details to gain an in-depth understanding of these organisations.
• Use your social contacts that will make your target more approachable.

First Step on Journey to Success

A love triangle best describes the relationship among sponsors, the fund-raising manager and the product. In order to secure this bonding, the "first date" plays a vital role. The following are suggestions for your initial meeting with the sponsor:

• Never be unfriendly with the secretary of the potential prospect sponsor. He/she is the guide in your evolving relationship.
• Bring along a colleague to boost your confidence. He/she may help in any unexpected situations.
• To make the sponsor feel more comfortable with an area of art that he/she may not be familiar with, dress in a manner the sponsor can identify with.
• While explaining your project, avoid speaking too fast and too long. Limit what you are delivering to a bitesized 10 minutes or less per item to gain maximum attention.
• Do not force the sponsor to accept something that he/she does not like. Avoid any argument because the loser will surely be you.
• Speak with sincerity. There is no need for bowing and scraping or telling lies.
• Prepare the basic information of your sponsorship proposal for clear presentation. Speak with substance and clarity. Monitor your speech.
• When negotiating for terms, never go beyond your bottom line.
• Set a time frame and allow the sponsor ample time for decision-making.

Generating Further Interest

• First comes a tailor-made proposal for that particular sponsor.
• Grab every opportunity for direct communication, and understand the sponsors' need from his/her response.
• Ensure that the sponsor understands your product. This is not easy as the arts are not all that familiar or popular in Hong Kong. Be more prepared if you are promoting an experimental work. Sponsors like to read facts and figures. Gather as much data (e.g. newspaper reports, significant quotes) as possible to back you up.
• Invite prospective sponsors to attend your shows to whet their appetite and stimulate their interest. Observe closely their response.
• Remember to invite the sponsors to the show even if the sponsorship is successfully granted. Their participation and opinions not only help maintain a good partnership but also increase their interest in the arts. Do not forget to send to the sponsor a thank you letter on behalf of the top management of your organisation.

Drafting a Sponsorship Proposal

As mentioned, the key follow up action in seeking sponsorship is to come up with a good proposal, tailor-made for the sponsor's needs. Here are some useful tips:

1. Clear Concept
   • Know what you are able to offer, your strengths and weaknesses, also your practical limitations.
   • Understand the needs of the sponsor. Always put yourself in the sponsor's position when you plan and write the proposal. Address and fulfill their needs.
2. Good Preparation
   • Study the target sponsor's background, sponsorship history, assessment criteria and the unique reasons for giving the sponsorship.
   • Find out their sponsorship budget. Identify your competitors.
3. An Attractive Proposal
   • Stress the value of sponsoring your programme; emphasize value instead of cost.
   • Apart from highlighting immediate gains, the proposal should also provide a long-term vision. Sponsorship is like an investment -- the sponsor should be convinced that their funds are well-spent and not wasted in an one-off programme. Include in the proposal your prospectus and future direction.
4. Clarity and Conciseness
   • A sponsor may have hundreds of proposals to read and choose from - one that is clear and concise has its definite advantages.
   • A well-designed and professional proposal should include evaluation criteria, measurement, supporting documents as well as information such as news clippings, reviews and publicity materials.
5. No Mistakes
   • Be honest about the data you provide. Potential sponsors can always verify it. It is difficult enough seeking the trust of a new sponsor. Never risk losing it.
   • Allow no mistakes, especially in the budget. This will jeopardise the reputation of your company.
   • To earn the trust of the sponsor, never be late in submitting the proposal

Contingency Arrangement

An artist does not show up on the day of the performance, the sponsor changes its sponsorship policy or there comes a sudden economic crisis. What should you do? Accidents will happen. You have to be prepared for every contingency.

You have to keep the sponsor informed of the situation in case a performer does not show up, apart from following up with the "aftermath" such as ticket refunds. A fine connection between the sponsor and the arts organisation is necessary at all times.

Never Give Up

A "No" doesn't mean it's all over. Remember: Where there's a chance, there's a way.

Limited budget is usually the reason for rejection. In addition to money, you can also make use of the sponsor's market resources and connections to promote your product - for example their media exposure, company newsletter, website, airline magazine, corporate video and their retail agents. Opportunities abound and it is up to you to grasp every partnership possibility.

Even if the economy is flat, organisations still wish to commit to worthy causes like arts education. You may persuade them to support your projects on arts education; you may arouse their interest by telling them the benefits they will reap in terms of image building and status enhancement.

A good proposal can always get an upper hand even in a depressed market. A sound idea is most important even in depression.

Not Popular Enough - More Room for Artistic Survival

It is difficult to cast pearls before swine. Many do not even get a chance to negotiate deals with prospective sponsors, let alone be rejected. This is understandable. Not many people in Hong Kong have the knowledge or ability for the appreciation of the arts. In view of limited audiences, companies try to play safe and often choose to sponsor a pop star instead.

It is always difficult to make bricks without straw. Yet we hope the artistic environment will improved, and so will the artists themselves. For instance, no matter how small the arts organisation is, they should make use of every means they have. With creativity, anything is possible.

Many arts practitioners today only devote efforts towards their creations, neglecting the administrative work - a reflection of a lack of survival skills. Thus, art groups must "think big" not only in fund-raising efforts, but also in survival skills.

Reasons Business Organisations support the arts

It is no easy feat to convince business organisations to support the arts, but there are exception. An oil company established a cultural image through its environmental concerns. A bank created a new identity through supporting the arts. An electronic appliance company received tremendous promotional impact through its sponsorship of the performance of Chinese drums from Xianxi. Through collaborating with a popular singer, a philharmonic orchestra received funding for arts education (to set up the Young Audiences Scheme) from a major bank.

 

The above material was excerpted from:

1. "To Be or Not to be - A Sponsor-Friendly Organisation" - A Hong Kong Arts Development Council Information Centre talk on 25 February 1999, by Ms Vivien Lee-Kwok, Assistant General Manager, Hong Kong Philharmonic Society.
2. "DIY Tips" from the Hong Kong Arts Development Council Newsletter Issue 22, by Ms Lee Ho-yee, Lecturer in Arts Administration, Hong Kong Academy for Performing Arts.