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6 Reasons Why a Strong Brand is Important for Your Small Business

Deluxe on January 26, 2015 - 10:28 am in Branding, Small Business

Brand Identity ImageBeyond just a memorable logo, good branding increases the value of a company, provides employees with direction and motivation, and makes acquiring new customers easier. So what exactly is a brand? 

The short answer is: everything.

A brand represents the sum of people’s perception of a company’s customer service, reputation, advertising, and logo. When all of these parts of the business are working well, the overall brand tends to be healthy. On the flip side, we all probably know a company that offers excellent products or services, but has a tarnished brand due to poor customer service.

Let’s take a look at the important ways a strong brand impacts your business:

1. Branding Improves Recognition

One of major components of your brand is your logo. Think of how we instantly recognize the golden arches of McDonalds or the simple, but powerful eagle of the USPS. As the “face” of a company, logo design is critical because that simple graphic will be on every piece of correspondence and advertising. A professional logo design is simple enough to be memorable, but powerful enough to give the desired impression of your company.

2. Branding Creates Trust

A professional appearance builds credibility and trust. People are more likely to purchase from a business that appears polished and legitimate. Emotional reactions are hardwired into our brains, and those reactions are very real influencers.

3. Branding Supports Advertising

Advertising is another component of your brand. Both the medium chosen and demographic targeted for advertisements builds a brand. Too narrow an advertising focus, and a company risks being “pigeon holed” and losing their ability to expand into new markets. Too broad a focus, and the company fails to create a definable impression of the company in the minds of would be customers.

4. Branding Builds Financial Value

Companies who publicly trade on a stock exchange are valued at many times the actual hard assets of the company. Much of this value is due to the branding of the company. A strong brand usually guarantees future business. Whether a company is in the position to borrow funds for expansion or rolling out to an IPO, being perceived as more valuable will make the process advantageous for the owner of the payday loans online company. The greater a company’s devotion to build its brand value, the better the financial return from its efforts.

5. Branding Inspires Employees

Many employees need more than just work— they need something to work toward. When employees understand your mission and reason for being, they are more likely to feel that same pride and work in the same direction to achieve the goals you have set. Having a strong brand is like turning the company logo into a flag the rest of the company can rally around.

6. Branding Generates New Customers

Branding enables your company to get referral business. Would it be possible for you to tell a friend about the new shoes you love if you couldn’t remember the brand? A large reason ‘brand’ is the word used for this concept is that the goal is an indelible impression. As the most profitable advertising source, word of mouth referrals are only possible in a situation where your company has delivered a memorable experience with your customer.

The most profitable companies, small and large, have a single thing in common. They have established themselves as a leader in their particular industry by building a strong brand.

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  • January 27, 2015

    Branding Plays an important role in long tern success of business.There are many ways available today to create a brand valuable.A single user today owns and works on multiple devices. I Have hire a graphic design companies for Designing The branding materials.

    Jaelon Warren
  • February 16, 2015

    Thanks for spelling out some benefits! It might seem a little woofoo or hard to do by yourself (it is) but a good branding process helps people figure out their audience and what they stand for. I love seeing the internal effects of branding exercises where owners feel recommitted to a purpose.

    • June 2, 2016

      The most successful brands focus first on creating a belief system (internally) around their customers and potential customers wants and needs. A purpose. After all, you can desire to be the most respected and loved “brand” in your space but it’s the experiences of the customer that makes this so.

      Michael Stewart
  • May 8, 2015

    I completely agree. Your business is recognized by your brand name, branding helps in promoting business which further leads in targeting right audience. Signs and labels used in creating brand name distinguishes your business and services from others.

    Carl Carlsson
  • March 28, 2016

    Great article on importance of strong brand presence. It is important to point out that when people recognize a brand, they trust it and will choose it time and time again.