When it comes to putting an outdoor ticketed event with expenses that include talent, production, staff, venue, etc.. and revenue is generated from tickets, bar, sponsors, and vendors. Is it profitable for me to seek an investor or seek sponsorship money? Or both?
I dont think the location or type of venue matters much in your ability to pursue and negotiate opportunities for vendors, sponsors and or investors. The easiest to pursue is vendors - in fact most smaller events are paid for by the vendors and sponsorships from local organizations who want to reach your type of audience. Make a description of the type of crowd you will attract and then make a list of potential products/companies that might be interest in advertising there. Create and sell packages to them. That approach is probably much easier than pursuing a random investor whom you have negotiate a lot more than just the ad pricing and can delay things. Unless you know someone who can give you money w/ little questions asked then go for the vendor/sponsorship route.
Hi there! I don’t know much about making an outdoor ticketed event but I do know quite a bit about hosting events! I have hosted events for my and other startups. My advice to you is to double check what exactly you need because investors and sponsors are two completely different things.
Investors are perfect if all you're looking for is some more money. They will probably ask for some percentage of the profits or something similar to that. They can help open more doors via their connections but they aren’t forced to do so. Plus some of them might have experience in this type of event and they could be willing to help you out. However, like before it is up to them if they want to. So if all you are really looking for is more money, then investors are the right choice for you.
Sponsors tend to be more active in helping set up the whole event. Plus, different sponsors bring different things to the table. Not only can they supply food and drinks for the actual event (you probably get a percentage of their sales) but many are probably experienced in the event you will be running. Meaning that they can bring their experiences and open other doors for you. Another upside is that some sponsors might also bring in money plus food or drinks.
In the end, the choice is yours. If you are only looking for money, I would suggest going for investors. If you are looking for more, perhaps have someone supply food or drinks, then a sponsor is your choice!
Probably a bit late now, but this is a very risky business with all your eggs in one basket.
I would not consider promoting such an event unless and until your costs are covered regardless of the number of tickets you sell. That can be achieved better by sponsorship than investment in my view.
However, a safer option is to crowdsource subscription.
Describe the event, find or create a community to get behind it. Set a target amount, after wish you will confirm the event. Allow people to pay for tickets in advance at discounted rates. Put the funds in Escrow. Tell people that, if you fail to reach the "Go" target, they will have their money returned.
Good luck if it's not too late.
I am certified in Sports Administration. I would offer that you would in a perfect world want both sources of income. Depending what type of event you're putting on, I can speak from a sporting perspective that sponsors may try and hone in on a specific area with the idea of putting its name or brand out in the community. While investors are putting in money into your organization or event and that money is up to you on how and where it is used. Investors are the way to go if you need the resources and need to put them in a number of different areas. Sponsorship can be at very focused and you may end lose some control or latitude over the resource. So finally I would also advise that you have an upfront and if need frank and direct discussion with these potential revenue generators so both sides are clear how the revenue will be distributed and utilized.