By definition, branding is “the promotion of a particular product or company by means of advertising and distinctive design.” Overall branding represents the value of a company including customer and non-customers opinion of the company, its customer service, their reputation, advertising and last but definitely not least the company’s logo.Consider your favorite soda, restaurant, or how you only like using Tide detergent to wash your clothes? You can have a plain black sweatshirt from
wholesale for everyone that costs ten dollars, yet a brand adds their custom print logo onto the wholesale item it then instantly adds value three to four times the original price.Therefore, if you are a startup company trying to expand your company, below are five ways how branding impacts your business,
1. Branding improves your company’s recognition.The “face” of your business is your logo. A logo is how a company is identified (think McDonald’s and their golden arcs) when people see the logo and what sets it apart from competitors. In order to improve your company’s recognition, it is imperative to have a design professional create your logo. A logo should be sleek and simple in design, yet strong and powerful enough to be memorable and leave an impression with current and future customers.
2. Branding creates trust in the marketplace.Everyone likes to deal with someone they can trust and when it comes to purchasing from a business, there is no difference. With there being so many options in the marketplace, customers want to trust that what your business is telling them is honest and that you care about them as the customer. When a customer “trusts” your business, you build their loyalty and repeat business. In addition, they spread the word which legitimizes a brand.
3. Branding engages new customersAs a continuation from branding builds trust and customers spreading the word, branding generates new customers based off of the currents customer’s referral. The whole point of having a business is for it to grow and become profitable, therefore new customers are necessary.
4. Branding inspires employees.Not everyone is meant to run their own business as it requires a lot of hard work, dedication, and sacrifice. However, those of who do have that energy and drive cannot do everything alone and by themselves. That is where employees come in at. Not just any employee who is there only for a check, but an employee who believes in your brand’s vision. When your brand is strong, you attract employees who believe in your brand’s mission statement, who have a sense of pride, and they work hard to achieve the goals of the business owner.
5. Branding adds financial value to your business. The greater a brand’s value is the greater the profit margins are. A company is often valued higher than what it is actually worth based off of current and projected sales, which is due to the branding of the company. A strong brand often guarantees future business including expansion, which is what investors want to hear.
