What is Branding? 5 Reasons Why it’s Important for Your Small Business
For a moment, I want you to think of a few popular brands. The brands that may have come to mind first are probably the ones we’re most exposed to, such as Google or Apple. It’s not likely that you thought of small businesses such as your local cleaner or ice cream shop. But branding isn’t just for large corporations. Branding may be even more important for small business owners to set themselves apart from their competitors and give their customers a compelling reason to choose you over the store down the street. But let’s start at the beginning - what is branding?
What’s a brand?
If you were to do a search for the definition of a brand, you would find a wide range of results. Some definitions are simply one sentence, such as David Ogilvy’s definition, “A brand is the intangible sum of a product's attributes.” Many other definitions go on for a paragraph and you’ll see a wide array of answers. Why is there so much confusion about brands?
Brands are about feelings, emotions, and perceptions that are based on the sum total of one’s experience with a brand. These tend to be abstract concepts that form in our minds based on our experiences with a product, service, or organization. These are not solid items we can hold onto. They change and evolve and are unique to each person.
“Products are made in a factory but brands are created in the mind.”
- WALTER LANDOR
Think for a moment about the Mercedes-Benz brand. It’s likely that some type of image or perception just appeared in your mind. Maybe you see it as the car you aspire to with its reputation for high quality and performance. You may associate it with wealth.
On the other hand, some people may see the Mercedes-Benz brand and feel that the brand is too serious. They may have an image of people in business suits driving them, which may not appeal to them.
Either way, people already have an idea in mind of what the Mercedes-Benz brand stands for.
What is branding?
Branding is the process of actively shaping your brand. It is understanding who you are and why you exist. Branding is an intentional effort to influence people’s perception of your organization and build an emotional connection with them. It conveys to your audience how you are different from your competitors.
5 reasons why branding is important in your small business
You may think that branding is just for large corporations, but it is also essential for small businesses. You may not have an entire department devoted to your brand like some of the large companies do, but that doesn’t mean it’s any less important for small businesses.
Here are five reasons why branding should be a high priority for your small business.
1. BRANDING TELLS YOUR STORY
Branding allows you to succinctly convey your story to your audience. You share your story through your logo, the way you interact and speak with your audience (brand voice), and your personality (friendly, honest, welcoming, etc.). All of this together is shaping how your audience views you. If a client is calm and elegant and you’re interacting with your audience in a calm and elegant way, there is an instant bond between you and your client. They will feel like you understand them.
2. BRANDING BUILDS YOUR BUSINESS RECOGNITION
Brand recognition is essentially what makes your company memorable. This includes items such as your logo, color scheme, brand voice, and visual elements. Branding your small business puts your company in front of your audience and helps you to make your company memorable. The more familiar your brand becomes to your audience, the greater the likelihood that they would be willing to try your digital product or service.
3. BRANDING INCREASES YOUR BUSINESS AWARENESS
When people are aware of your brand, they not only recognize your company from your logo, but they know who you are and how your product solves their problems. They also think your company happens to provide the best solution for them. Increasing awareness is about building trust and strong relationships with your clients.
4. BRANDING EMOTIONALLY CONNECTS TO YOUR IDEAL CLIENTS
A strong brand tells its audience we “get you”, we feel your pain, and we have a solution for you. Trust forms when a company solves their client’s problems. And if a company can continue to do so in a consistent manner, the client will develop a strong bond with your brand. So much so, that they may become your brand ambassadors. If they have a friend with a similar problem, they’re going to recommend your company. One of the tell-tale signs of a strong brand is when a company is getting a lot of referrals.
5. BRANDING GIVES YOU CONFIDENCE
Building a strong brand involves a strategic, well-thought-out process, but it also requires some risk-taking. Defining your brand is an opportunity to set yourself apart from the crowd - it is what makes you different from everyone else.
Anytime you are doing something different from the others, you are taking a risk. Imagine for a moment that you’re standing in a crowded room and you’ve been asked to stand up and tell everyone why you’re different. It takes some guts to do because you don’t know how people are going to perceive what you say. Will they like it? Or will they think it’s just weird? Think about the reactions Steve Jobs may have gotten when he told the world about his vision of creating mini-computers (iPhones) to carry around with us. At the time, it was far-fetched. Now it seems brilliant.
A strong brand will also give your staff confidence as they will understand what the company stands for. When they have a clear understanding of your brand, they are more likely to make decisions that align with the company’s mission.
Conclusion
I hope I’ve been able to clarify what branding is and why it’s essential for your small business.
It’s important to remember that branding is an ongoing process; as your business grows, your brand evolves. If you’ve written down your brand mission, core values, etc. years ago and haven’t looked at it since it’s a good idea to revisit it. You may find that it’s time to rebrand to keep up with the times. If you need some help clarifying your brand, please make sure to check out my Brand Clarity Workbook.