A brand is essential for any business owner. Whether you are a multinational corporation or a freelancer, you will have a brand. It can be either your company’s brand or you personally as a person. Whatever it is, a brand is the sum of a company’s reputation, customer service, ability to provide excellent work, etc… When a brand is well thought of and developed, the business will flourish together with it.
Here are some reasons why you should bother about building a strong brand.
The brand is essentially the face of the business. It is what resonates with people. Not just customers but fellow vendors alike. Imagine a brand like Coca Cola. When someone mentions Coca Cola, a certain image comes to mind. When Coca Cola enters a market, fellow vendors and companies will take notice. For a start, a professional looking logo should give the desired impression of your company or business. The logo should be simple and yet impressionable.
A strong brand has a value that is multiples of the value of its hard assets. The additional perceived value is goodwill. Going back to our previous example, if Coca Cola were to sell of all its hard assets and was only left with its logo, its logo would be worth a large amount of money. This is despite the fact that the company does not have any tangible hard assets on its balance sheet.
A strong brand has the ability to generate new customers without much need for advertising. The leading brands in the various industries will have one thing in common. They are able to generate new customers just from the fact that they, being market leaders, have established that very impression among consumers.
A strong brand has the ability to attract employees. Good talent would generally gravitate towards the top brands. Working for a top brand still has a certain level of prestige.
Despite the need for a strong brand, many companies fail to identify this as an aspect to improve. Working on a good brand requires significant time, effort and cost. This can be challenging for companies that are just starting out. However, this is an important exercise that should be done by the leadership of the company.
The editorial team at SG Business Advisory