"Racing for Small Business" Car Guy and Gal Input!

Hi everyone, I don't post here often aside from occasionally in my build thread. I'm looking for some input on a project I created called "Racing for Small Business." I don't want to make this a novel so I'll be very brief with my introduction. I'm 27, started racing when I was in elementary school in karts and money allowed, started autocrossing at 15, got my competition license in 2011, currently have an SCCA HP VW. I am majoring in small business management which is sort of why this program goes well with my interest outside of racing (as if that's even a thing).

So the idea comes from "Racing for Holland" which sports car racing fans may remember from the early 2000s specifically when they ran a Dome painted in the checkered board paint scheme. This was a much larger scale, such as racing Le Mans, but the idea is sort of the same. I want to give small businesses the chance to advertise in racing, in this case right now SCCA and some vintage racing, for little investment ($100.00/event). The goal is to promote the businesses, possibly create new b2b partnerships, and just offer a cool and unique platform to get a little exposure. As you all know, most exposure right now comes from anything I share personally, social media, and small coverage from the bigger events (think The Mitty, Runoffs, etc).

My goal would be to continue this as I keep moving up and hopefully into some pro races where we could get some TV coverage and start to offer some additional incentives such as limited ticket giveaways, etc. Right now the focus is on club racing though.

So I'm just looking for input from you all. Check out my website, think about it, then tell me if I'm an idiot or if it's kind of cool: www.racingforsmallbusiness.com

Long story short, you're looking for sponsors...Maybe I'm not following your explanation very well?

Driven5 wrote: Long story short, you're looking for sponsors...Maybe I'm not following your explanation very well?

Well yeah obviously but I'm asking if this different way of doing things sounds silly or what you all think, how the website looks, etc.

When looking for sponsorship it's important to ask the question---- if I was in their shoes, would I do it?

Look at it from a business-owner's perspective. Is the exposure you are offering worth $100? How else can you "sweeten the pot"? Would you be willing to hang sponsor's signage in your pit area? Pass out their literature? Wear their logos on your suit? etc.

It's all about return on investment. If they aren't seeing it, it's going to be a tough sell. If you are clearly offering more than you are asking---- it will be a much easier sell.

Good luck!

Driven5 wrote: Long story short, you're looking for sponsors...Maybe I'm not following your explanation very well?

Yep this ^^^^^^^^. I see posts like this about 1-2x a year and call it what ever you want but in the end it is getting company's to give you $$$$$ to put there name on there car. AKA a sponsor.

@ the OP good luck with this. Instead of what you are doing I would focus on selling you as a driver. Work at becoming a professional driver first and sell your self to established race teams that can then sell you to a sponsor. If I remember there was a very good article in GRM a while back written by one of the pro drivers that contributes to GRM and he covered the in's and outs of sponsorship and what it takes. I suggest that you find that and start there.

Joe Gearin wrote: When looking for sponsorship it's important to ask the question---- if I was in their shoes, would I do it? Look at it from a business-owner's perspective. Is the exposure you are offering worth $100? How else can you "sweeten the pot"? Would you be willing to hang sponsor's signage in your pit area? Pass out their literature? Wear their logos on your suit? etc. It's all about return on investment. If they aren't seeing it, it's going to be a tough sell. If you are clearly offering more than you are asking---- it will be a much easier sell. Good luck!

Thanks, all good points that I have plans to address for sure. The only part about adding more is for $100.00, I can't fit say fifteen businesses onto my suit especially since it's race to race, the patch would cost a good chunk. For myself as a driver I do offer things like that to my existing sponsors though.

I remember the Dome painted in the checkered board paint scheme, to me that reminded me of a early crowd fund project rather than a business opportunity.

dean1484 wrote:

Driven5 wrote: Long story short, you're looking for sponsors...Maybe I'm not following your explanation very well?

Yep this ^^^^^^^^. I see posts like this about 1-2x a year and call it what ever you want but in the end it is getting company's to give you $$$$$ to put there name on there car. AKA a sponsor. @ the OP good luck with this. Instead of what you are doing I would focus on selling you as a driver. Work at becoming a professional driver first and sell your self to established race teams that can then sell you to a sponsor. If I remember there was a very good article in GRM a while back written by one of the pro drivers that contributes to GRM and he covered the in's and outs of sponsorship and what it takes. I suggest that you find that and start there.

If I lead anyone to think this wasn't sponsorship...sorry. lol I typically don't use the term sponsor because sometimes people take it negatively and think "donation." I aim to act as a type of salesman and actually promote businesses, I enjoy it, so while yes it is sponsorship it's also meant to be effective. I consider putting your name on a car the least productive piece of "sponsorship."

How much space do I get? Will there be any print/tv/internet media that will see my space? What prevents you from selling space/more space to a competitor? What promotional items do I get in return other than a one race small space ad? Lots of questions to answer if it was my money.

I like the concept though. Maybe push/promote with local business around the tracks you are visiting? We used to do that with our race boat team. They would have stickers made to certain dimensions and we would give them space on the boat and made sure the series photographer got plenty of shots and their contact info. Peel them before the next town. Got us some fuel/food/lodging money.

Flight Service wrote: How much space do I get? Will there be any print/tv/internet media that will see my space? What prevents you from selling space/more space to a competitor? What promotional items do I get in return other than a one race small space ad? Lots of questions to answer if it was my money. I like the concept though. Maybe push/promote with local business around the tracks you are visiting? We used to do that with our race boat team. They would have stickers made to certain dimensions and we would give them space on the boat and made sure the series photographer got plenty of shots and their contact info. Peel them before the next town. Got us some fuel/food/lodging money.

All of those are answered in a proposal I send to interested parties except for selling space to a competitor, it's open to any small business, while I know that may sound weird and it would be odd to say have two local burger joints on the car, that's sort of the nature of the program right now because I wanted to try to promote any and all small businesses, not just limit it. I may change it though, I can see how to competitors that may seem outright stupid. lol

Great point about local businesses.

simontibbett wrote:

Driven5 wrote: Long story short, you're looking for sponsors...Maybe I'm not following your explanation very well?

Well yeah obviously but I'm asking if this different way of doing things sounds silly or what you all think, how the website looks, etc.

I'm still stuck back at trying to figure out what exactly makes this 'different' from other sponsorships, beyond offering it on an individual event basis.

Driven5 wrote:

simontibbett wrote:

Driven5 wrote: Long story short, you're looking for sponsors...Maybe I'm not following your explanation very well?

Well yeah obviously but I'm asking if this different way of doing things sounds silly or what you all think, how the website looks, etc.

I'm still stuck back at trying to figure out what exactly makes this 'different' from other sponsorships, beyond offering it on an individual event basis.

Price and the selling small squares for a larger project...aka promoting small businesses? I have typical sponsors, even have had single event sponsors, I have been trying to go about this at a different angle and find businesses that may not be as likely to be in racing that want something exciting.

simontibbett wrote: All of those are answered in a proposal I send to interested parties...

But what exactly is supposed to attract strong enough interest from a small business owner, that they'll go out of their way to contact you?...Just so that they can find out what you're actually trying to sell them for $100.

.

simontibbett wrote: Price and the selling small squares for a larger project...aka promoting small businesses? I have typical sponsors, even have had single event sponsors, I have been trying to go about this at a different angle and find businesses that may not be as likely to be in racing that want something exciting.

It's probably not going to be any more obvious to the types of business you are specifically targeting with this idea, than it is to me. I would suggest more useful information about what you're actually offering and why.

Driven5 wrote:

simontibbett wrote: All of those are answered in a proposal I send to interested parties...

But what exactly is supposed to attract strong enough interest from a small business owner, that they'll go out of their way to contact you?...Just so that they can find out what you're actually trying to sell them for $100. .

simontibbett wrote: Price and the selling small squares for a larger project...aka promoting small businesses? I have typical sponsors, even have had single event sponsors, I have been trying to go about this at a different angle and find businesses that may not be as likely to be in racing that want something exciting.

It's probably not going to be any more obvious to the types of business you are specifically targeting with this idea, than it is to me. I would suggest more useful information about what you're actually offering and why.

So are you saying the website just isn't clear? I don't plan on anyone contacting me, I'm just not big enough, so most contact originates from me. In my first email I explain what I'm trying to accomplish, the price, and what they would receive. If they're interested I send a more formal proposal.

The goal is simple and that's to give small businesses a cost effective method of advertising on a race car. You get a logo on the car, social media and website linking, and a thank you gift.

Maybe I'm just dreaming too high or maybe I suck at explaining what I have in my mind. Lol I think racing has a lot to offer, even at a club level, there's a lot of networking to be had. In my eyes not only can a business get a cool and exciting little advertising campaign during a weekend but also possibly find partners.

It's not a literal "sponsor me please" kind of project, as a small business major and owner I am very passionate about business and wanted to try and combine the two.

One thing about the local businesses though is you might want to screen. We had a local "club" that wanted some promo shots with the boat and some of their "staff"

I can't post those here....

To screen them out...Or to screen everything else out?

With small businesses it's better not to beat around the bush with words like sponsorship. They're buying advertising, straight and simple. How are you going to bring them enough NEW business to allow them to recoup the $100.00 expense and also provide them the opportunity to reap future profits through said new business.

The $100.00 comes directly out of the business owners pocket so you need to show them how they will gain around $500.00 in new business to cover that expense or they just lowered their personal income by $100.00. All the crap people spout about it being a business expense doesn't amount to anything. The business owner just spent $100.00 they didn't need to spend and want to get back, hopefully with an added benefit of additional profit. Will they get that new business from folks who see the car at the track? Probably not. Will they get that new business from the folks who follow your social media? Probably not. So where will the new business come from?

Look at ways the car can advertise for the business. Lets say a tire shop, parts store, gas station, or other auto service related business on a busy road. You could park the car on a trailer there for a day to attract attention. Think out of the box.

I was on both sides of this game for many, many years in several different types of racing. As a business man buying advertising I wanted a return on my investment. As the advertising medium I went out of my way to make sure the business got as much as I could do.

And, take some new pics of the car as a blank slate for your website. No one wants to pay $100.00 for advertising on your car when you're running stickers for free from places you bought stuff from or hope to get contingency money from.

simontibbett wrote: So are you saying the website just isn't clear? I don't plan on anyone contacting me, I'm just not big enough, so most contact originates from me. In my first email I explain what I'm trying to accomplish, the price, and what they would receive. If they're interested I send a more formal proposal. The goal is simple and that's to give small businesses a cost effective method of advertising on a race car. You get a logo on the car, social media and website linking, and a thank you gift. Maybe I'm just dreaming too high or maybe I suck at explaining what I have in my mind. Lol I think racing has a lot to offer, even at a club level, there's a lot of networking to be had. In my eyes not only can a business get a cool and exciting little advertising campaign during a weekend but also possibly find partners. It's not a literal "sponsor me please" kind of project, as a small business major and owner I am very passionate about business and wanted to try and combine the two.

I was only able to go on the information I had available at the time. Which was limited to $100 per event to be a small time sponsor on an amateur racecar. The only other thing that would tell me how this works is an off hand reference to Racing for Holland, without any explanation for what that means or how its being applied here.

In my opinion the execution of the idea is just as, if not more, important than the idea itself. So if you're just looking to see if the idea of more small sponsorships itself has potential, it does...Just like so many others. But whether it ends up being a success or a failure will be determined by how well you can refine, and then expand, your formula. Honestly though, as much as I love the idea of bringing racing and local businesses together, I think that advertising on racecars in general is a pretty tough sell from an ROI standpoint.

Wyatt Knox did a great video on obtaining sponsorship, it's on YouTube, I recommend checking it out.

As others have said it's about advertising and dollars per an exposure. Do you put out pretty and post race press releases? Do you have social media pages for the car and team? What is the analytic information on the open, read, individual view and response rate to these free self created forms of media. If you don't have this information you're not ready to play ball. You have to provide analytic information that shows them the value of their dollar spent versus spending that dollar on a billboard, placemat at a diner, radio ad, or website ad. Then in addition to that offer to have the car on display at their place of business and at other events. Offer to assist the in scheduling, setting up and promoting an open house for the business. Remember the social media and press release audience I referenced? That's the scope and market you'd be sharing and promoting their open house to, is it large enough to make them interested or to persuade them to ask, "how can we get on board?"

Your marketing and brand management needs to blow there's away in order to be of value to them. If it doesn't you're waiting their valuable time in approaching them with a sponsorship pitch.

How big an area do they get for $100? Where is the placement? These are the first two questions you will be asked. I have also been on both sides of this and that is the first thing I ask about any advertising be it on a car or in a magazine or at a event. If the fans in the stands or on tv or looking at photos on the web can not see the sponsors name it is a bad deal for both parties. Also what is going to bring fans to the website? It is great that you may have one but how much traffic does it get? As a sponsor I would want to know that as well.

The bottom line is that once you take some ones money it becomes an advertising business. And like any business it takes capital to start it. Your capital. You also will need to show a track record of good consistent finishes. Sponsors don't want to be associated with a looser.

You keep saying that you will be doing this. You need to re think that as well. You need to find someone to manage the sponsors. So you can manage the racing. This I particularly important if you are planning on many small sponsors tgat come and go. Much more hand holding and sucking up to is required.

OK, everyone is going on and on about return/$ and what not. That's all fine and dandy, but I go to the local circle track and the majority of the cars have "sponsors". He'll, the track has sponsors that pay enough that the races have prize money!
The real question isn't whether you're providing proper return on investment, that's too narrow a definition, it's providing whatever it is that makes someone want to support you (I have ideas). Figure that out and you'll change amateur road racing in the US forever.

Lots of good info on here, not sure how to respond to everyone so I'll just break it all down.

First things first I didn't mean for this thread to turn into a how to get sponsorship thread, I've been playing this game for many years and have had some decent success finding sponsors for club racing, even track days if you can believe that. My main question was is this specific method worth promoting or if it's silly. The specific method I mean is selling checkered board squares, in this case 6x4" on the hood of the car, to small businesses, for $100.

Obviously I'm not a pro driver so there is very little media coverage and any that there is not every car would be photographed, think ARRC or Mitty coverage in GRM. So what I have always done is promote the wheels off of any partner through social media and websites and also at an event. If you give me flyers, a demo product, you name it, I'll use it as a tool. I have personally seen a partner make back their money easily in one weekend, if it were $5,000 sure probably not, something in the range of $300 - $500 then yes. We are talking club racing, not pro racing, so there's only so much that can be given in return and only so much that can even be requested. Proposals I have had for a series with TV coverage and an international audience are radically different than this proposal. Any website and social media tools I use I have every piece of raw data a business owner would want to see though.

Now we're talking $100 here, which is why I'm trying to differentiate a regular "sponsorship" from this. I can't afford to tow my car around to businesses because you gave me $100. That doesn't make much sense unless you were very local. I don't mean to sound cocky or above something but if I could do that I'd just offer the space for free to try and promote small businesses and get more people excited about club racing.

Now already I know some businesses like this idea and what it can offer, I also know some prefer the traditional "driver partner" type partnership. As a small business owner myself I wouldn't have much of an issue giving away $100.00 for a fun little race weekend with my logo on the car and some pictures of it. I know some businesses run a very tight budget and they may not care about racing as I do, so of course everyone is different.

So I guess my main questions making this thread are:

1. Think $100. Do you think paying $100.00 for a 6x4" logo on the hood of a car, social media and website linking, and some marketing material after the race weekend worth it? Obviously some businesses have already shown yes, some have said they just aren't interested.

2. Is the website clear or is it confusing?

3. If you were a small business, or you own a small business, would you expect more for $100?

Some of these questions were answered just in longer detailed responses which are great, I've taken some notes and appreciate all the input. I'm just trying to keep "how to get sponsors" and this particular idea separated.

As for circle track stuff, I know, I picked the wrong kind of racing. lol

The short answer as a business owner I would laugh you out the door if you tried to sell me a 4" x 6" square on a car for $100. I mean who would see it? I would do it for a charity donation (with the $$$$ going to the charity) but racing is not charity it is some one having fun (you).

As a comparison I can get a add in the town paper about that size for not much more than that.

Sorry to be the "wet blanket" here but I am calling it like I see it.

dean1484 wrote: The short answer as a business owner I would laugh you out the door if you tried to sell me a 4" x 6" square on a car for $100. For a charity donation sure (with the $$$$ going to the charity) but racing is not charity it is some one having fun (you). As a comparison I can get a add in the town paper about that size for not much more than that. Sorry to be the "wet blanket" here but I am calling it like I see it.

No that's the kind of truth I'm looking for!

So for you personally, for your business, for $100 you would need more than just a logo for it to be viable is what you're saying, which I am sure many would agree with.

simontibbett wrote:

dean1484 wrote: The short answer as a business owner I would laugh you out the door if you tried to sell me a 4" x 6" square on a car for $100. For a charity donation sure (with the $$$$ going to the charity) but racing is not charity it is some one having fun (you). As a comparison I can get a add in the town paper about that size for not much more than that. Sorry to be the "wet blanket" here but I am calling it like I see it.

No that's the kind of truth I'm looking for! So for you personally, for your business, for $100 you would need more than just a logo for it to be viable is what you're saying, which I am sure many would agree with.

For me personally it is all about the logo being visible (on the car). From my experience no one goes to a web site other than to see if you are actually a real entity. I have never once used any kind of social media advertising as a basis for a purchase. In fact add placement on web pages usually really annoys me and I don't want to be the product that annoys people on line. I want to you to be the "eMotosports" (shameless plug for one of my businesses) car that people are talking about at the track. I would much rather pay you $1000 and have my logo be the only one on the hood of the car than your $100 option.