Starting Small: The Importance of Branding for Small Businesses & Startups
Did you know that the US has over 33.2 million small businesses? Crazy right?
For me, that’s both weirdly comforting and intimidating. On the one hand it’s nice to know I’m not alone, but on the other hand it makes it feel like there’s a lot of competition out there.
But, did you also know that a business can qualify as a small business if it makes millions of dollars and has hundreds of employees?
Yep, that’s right! The range for what qualifies as a small business is quite vast. And that can be especially surprising considering that when most of us think of a small business, we’re envisioning a small office with a handful of employees, or even just 1-2 family members running the shop.
So keeping that in mind, it’s no wonder that 99.9% of businesses across the US are considered to be small businesses.
But one thing that all of these businesses have in common, regardless of size, profits, number of employees, or offerings is that they all need branding to play a role in their business strategy.
Behind the Scenes
When launching a startup or running a small business, branding might not even crack the list of the top 10 things you’re worrying about. After all, the operational side of things tends to come first along with the 4 P’s of marketing: Product, Price, Place, and People.
But wait, it’s actually 5 P’s…and that 5th one usually gets left behind in the early stages of a business—Promotion.
In the midst of developing & producing your product, figuring out pricing, costs, and bills, and narrowing down your target market, it’s easy to forget the “why” and the “how” of things.
And that’s where branding comes in!
Whether you're launching a startup or have been running your own small business for a while, you’re likely an expert at what you do and what you offer. But you might not be an expert at marketing, which is OK! There’s a reason large companies dedicate entire departments to marketing & design (or pay to outsource it)—it’s a lot of work and takes a special skill set!
Branding for Small Businesses
Even if you’re not a marketer, here’s 5 important things to keep in mind:
Your logo is not your brand
If you’ve been around for a while, you may think I’m a broken record, but the most important thing to remember is that your brand is more than just a logo. Your brand is something that customers create in their minds. “Branding” is the strategy you use to guide them to think and feel a certain way. Your logos (and colors, and imagery, etc) are part of your visual identity system. And that, with your mission, and voice, and strategy, and more, all work together to help create your brand.
Before you even start with a logo, you need to start with strategy. Identify your business goals, your mission, your target audience, your purpose, and even your competition and come up with a plan on how you can best meet those goals. From there, your visual identity can be designed intentionally to help you achieve those goals.
Consistency is key
Once you have a visual identity system, messaging, and tone in place, it’s important to consistently utilize them across all touchpoints. From your website, to emails, social media, to your storefront, and your packaging, incorporating everything consistently will help you build a strong brand.
Cohesive branding helps build brand recognition & brand awareness which will allow you to develop deeper connections with your customers.
As your audience becomes more familiar with your branding, they will begin to recognize you from simply looking at an ad or a social media graphic—even if your logo isn’t present. The aesthetic, tone, and feeling of your brand will be something that is familiar to them, and they’ll be able to quickly identify you.
Building your brand recognition & awareness is so important because it helps build customer loyalty—one of your most important assets. Loyal customers will not only bring return business, but they can act as brand ambassadors by referring you to their friends and family. Since people are more likely to try a new brand or product following a referral of someone they trust, customers that are excited about your company can help generate more loyal customers,
Stand Out
Your branding is a way to stand out. It is how you can highlight and share your unique value proposition. A strong brand will help you differentiate from your competitors, especially in a crowded market. By developing a brand strategy, you can gain important insights to help you identify ways to stand out from your competition and better connect with your target audience. Whether it’s developing a unique color palette or crafting a specific image style to help elicit a certain emotion from your audience, your visual elements should be rooted in strategy to help separate you from the competition in your audience’s mind.
It’s not about you
This is one of the most important things to remember, but also one of the most challenging aspects of developing your visual identity. Your brand needs to resonate with your target audience. Even if you’re working with a designer to create your visual identity system, you are not the real end client—your customers are. Design direction and choices should never fully be based on a personal preference, it should always come back to your brand strategy. Everything needs to reflect your target audiences needs, wants, and desires. Don’t pick colors because you like them. Pick colors that bring the right energy and tone that will resonate with your audience. Don’t pick fonts just because you think they look cool. Select ones that support your strategy.
Of course, you want to feel secure and confident in your branding, but that might not necessarily be 100% aligned with your own personal style. As long as the end product supports your brand strategy and is put together professionally & cohesively, you’ll feel confident putting your company out there.
The Bottom Line
I know it’s not always about the money, but at the end of the day, any business that’s not a non-profit is looking to turn at least some profit, and strong branding is linked to value creation. Not only does presenting your branding consistently increase revenue by up to 33% (Lucidpress), it can help you increase the overall value of a startup. Having a strong brand not only helps you create customer loyalty and brand recognition, but it can allow you to command a premium price for your products & services. That premium can help to increase its profitability and overall value.
And profitability and value doesn’t only relate to your product & revenue — this can have important implications for companies that are looking to attract investors. Investors are more likely to invest in a startup with a strong brand. In fact, 82% of investors want the companies they invest in to have a strong brand (Vengage). While this may seem silly to some, especially those who already have a quality business model or product, it’s important to remember what branding does. A strong brand signals that the company has a clear vision, mission, and strategy. It shows that the company is thinking long-term, and is doing so strategically. It shows that they are willing to invest in themselves to better achieve their business goals. And, frankly, sometimes it just makes you look more put together and professional.
In the End
Branding isn’t a one & done process. It’s a long-term investment that should evolve over time. Building a strong brand takes time and conscious effort. It’s an ongoing commitment to showing up every day and presenting your company to your customers consistently. Nike, Starbucks, Coca Cola — those brands are immediately recognizable worldwide, but it didn’t happen overnight. It was a process that took years, and decades, to get where they are today.
And even the world’s biggest and best brands don’t stay stagnant, they evolve over time. That doesn’t mean they go through full rebrands every year, but it’s important enough to keep your branding flexible enough to evolve with your company’s needs — and the changing needs of your target audience.
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