How to avoid getting yourself into debts
Avoiding getting yourself into necessary debts that you will not recover from is important in the events industry. Doing research and convincing brands to invest in your company might be just the things you need the most.
According to renowed Dj and event organiser, Jotham Mbuyisi popularly known as Vetkuk, getting sponsorships and partnerships was easier 18 years ago when he and his partners started out in the events business, because you would plan just ask for a hand from the people you know and everyone would chip in with what they have.
In their first event they worked with Yfm for promotion and SABS for alcohol and money, and that was enough sponsorship combined with what they had gotten from close friends.
“Organising events was easier because you would speak to people and tell them what you needed. Everyone would help with anything they had, and the event would be a success. Now it is a bit complicated, you must convince companies to sponsor you and they want to know what you bring to the table and what’s in it for them,” said Vetkuk.
“Now is your event is sponsored by a certain brand, you cannot have their competition to sponsor you too, back then it did not matter.”
You need sponsors to help with your promotion and advertisement. They cost a lot if you do not have sponsorship. Advertising with radio stations and television may cost a lot because they need a cash injection or trade exchange
What happens in trade exchange is that they advertise for you and you must give VIP tickets and other incentives during your event that cost an amount both parties will agree on.
Some events may need billboards, influencers and posters.
“All that costs a lot of money, that is you need to work on your proposal and make sure that you are able to convince brands and companies to fund your event,” he said.
The living legend said for one to have a successful event, a business proposal of the event is needed because getting sponsorships is not easy.
“If you want to start small, do that, but be able to sell your business. Let it make sense to anyone you want to sell it to. Even if you think the brand or company you want does not know you, just have a proper business proposal and convince them to fund you,” he said.
He added that all event organisers hope for is that someone will buy into their idea and fund them, whether you have been in the industry for a long time or not.
“People close down their companies because they do not evaluate how much their event will cost, and then they end up overspending.”
Patients is the key element in the events business, according to the man who has been in it for 18 years. He said nothing comes easy.
“Rome was not built in one day. You need to have the right reasons to be in tis business. If you push yourself too much, you end making wrong decisions then you lose the business,” said the businessman.
“We have also been in debt, but we cannot give up because for us this is a legacy. We want this to last forever, our kids can still run with these events or have a company that will still run with them and our kids benefit from them,” said Vetkuk.
Your reasons will keep you in the business, if you are here to make a quick cash, you will not be able to be able to have something sustainable.
He said have a team that has the right energy to help you sustain your business.
Published in Finance and Sponsorship