well, a sponsor wants to know about his exposure level for the event. Create a portfolio of the event, with an approx total number of regular players around bangalore. How far is this event reaching out to them. How far are non gamers getting aware of this event, and the products associated with it. Put something about the venue, how popular it is, usually show how many daily customers that place has.
you can then say that you plan to do it regularly (once a year) and how it helps encourage the gaming community. Put up a relation of how improving the gaming community would help in boosting the sponsor's product sales.
try and get atleast some kind of local media to cover your event, there are loads of gaming magazines around in mumbai, contact them to be a media sponsor, and cover your event. Get a local newspaper, which is usually read by the younger generation in that city, to be the media sponsor.
You cannot have rival companies sponsoring you together though. Intel vs Amd, Nvidia vs Ati. If you can manage to get Amd's attention, you can get ATI in as well.
If this is the first time you are starting this tourney, it would be hard to get the big sponsors tied up with the event. Get the media coverage and etc for starters, after a couple of runs, show AMD, Intel or Nvidia how successful this event has been for all these years. That makes getting sponsors easier. Make sure, whatever sponsor you are signing up, you use their hardware. For example, if you are going to AMD, make sure all your comps running AMD and ATI graphics...sponsors don't like sponsoring on competitor products, plus they get more happy when they see a dedicated customer.
Get some I.T shops to sponsor the event for the first couple of times, even try out Pepsi/coke etc.
First and foremost you have to make a portfolio about your event, in a professional and business attire. Then have small portfolios/presentations about the different companies you thinking of tying up.
For example, have a small presentation of how Pepsi Cola can be associated with this event and how they benefit, and present it to Pepsi Cola when you go to them. That way companies are impressed that you are not one of the 10001 guys who knock up to them for a random sponsorship, but actually done your homework and serious about the business.
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Problems faced...well...there are loads, it all depends on how well organized your team is.
First hurdle could be the money. It takes money to host an event, and most of the times, the initial couple of sessions of the event goes sponsor less, or with very minimal sponsors. You have to show the sponsors how successful this event is and how they gain from putting money in your event. No money is free money.
Setting up the infrastructure, which would include but not limit to, configuring the comps, making sure the comps are at its 100% on the event day, have spare comps as backup, creating the tournament structure, proper advertising of the event, working on a participation fee, and getting the people to pay and sign up. Since you are most likely with very low sponsors for the first couple of times, make sure you don't spend too much from your own pocket. Just break even your costs with the participation fee received, forget about profits.
Managing the event is very important, you should have time slots for the participants, and stick by those time slots strictly!
Managing all the participants, that they behave and listen to the authority. You can't be strict and rude, coz you aint teaching kindergarden students, nor can you go easy on them.
Managing the rules of the competition.
Make sure the entire thing looks professional, your team should never look 'lost' at any time during the entire tourney. This affects the confidence level the participants have in returning back to your event next year.
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I am a game designer. I had done a double grads for my bachelors. Studied English Hons from Fergussions and BCA from IGNOU. Studying Masters in Marketing currently.
http://www.linkedin.com/in/siddharthamukherjee
thats my linked in profile.
All the best with the event