This is a question I often speak about with other small businesses. So let's break it down.
"It's Great Marketing!" For who? The event looks well supported which is nice for the event. But the sponsoring brand is rarely remembered after the fact. Their logo is lost in a collection of other logos.
"It's a marketing investment" Let's breakdown the numbers. As a small business, is it a good investment to hand out 300 products to a group of unqualified buyers? Someone elses audience? Let's say each item costs only $10 landed in Canada. Should a small business funnel $3,000 into building up someone else's event? Would that money be better spent on something else? $3,000 is a lot of money to a small business, especially if they are bootstrapping.
"It's exposure" Exposure to the sun gets you burned. What about a return on the investment? If the audience doesn't care about your product, the exposure is a wasted opportunity. Who wins? Not the small business.
''It's important to support good causes" As a small business we need to put on our mask first. If we pour our limited resources into an event, sponsored by huge companies, without any calculable benefits, is it a smart move? Or will the bill take our breath, and other opportunities, away?
These examples demonstrate how unwise it can be for a small business to sponsor large events. Even when we want too. While is may look and feel nice, it can be financially harmful. Until the business has grown to a medium size and has the marketing dollars to safely sponsor events, it's best to decline these 'opportunities'. This has been my experience and that of many small business owners I've know.
Most companies who ask me to sponsor their events, by filling gift bags with our luxury Turkish towels, have no idea the harm they will cause if I agree. They perceive my small business as a large one. Or they believe that by including us, we will someone come out ahead. Which could happen but it's very rare. The intention is well meaning. They say that path to hell is paved with gold.
TAKE AWAY: If you want to support Canadian small businesses, by including them in your next event, please purchase the products you want for your gift bags. Or give them a ticket to the event. Or ask them to speak. Or offer your guests a coupon to their online store.
If you want to support small businesses outside of events, and don't need their product, then sponsor that diversity certification you want them to have. Pay for their small business to attend a tradeshow as a vendor. Have your marketing team run ads on their behalf for a few months.
We need to think critically about how we are supporting our small businesses and ask if it's helping their goals to include them. As a small business owner, I appreciate your time today.
Let me know what you think in the comments.
I wrote this article on April 2nd 2025 when I posted it to Linkedin LINK
Nikky Starrett