Why Branding Matters for New Companies

Why Branding is Essential for New Businesses

Everyone seems to be talking about the importance of branding, but is it really that critical? The answer is a resounding “yes,” especially for new businesses. Here’s why:

What is a Brand?

Think of your brand as the “vibe” of your business. A strong brand makes your company memorable and recognizable. It’s what connects you with your target audience and sets you apart in a crowded market.

Weak vs. Strong Brands

A strong brand sticks in people’s minds. When they hear your company name, they know exactly what you do and what makes you different. On the other hand, a weak brand fades into the background, becoming easily forgettable and interchangeable with others.

Example: Picture Starbucks. Just hearing the name probably brings the logo, the atmosphere, and their drinks to mind right away—that’s a strong brand. In contrast, many local coffee shops, while nice, may lack this instant recognition.

What is Branding?

Branding is about creating a set of associations between your company and the things your audience values. According to Leila Hormozi, a brand is simply an association, and branding is the process of creating those associations in people’s minds.

Why Branding Matters

Branding is a powerful tool that can help you:

1. Stand Out from Competitors

A strong brand makes it easier to capture market share, especially in competitive industries. For example, dropshipping has a low barrier to entry, which means that anyone can start a store. Many of these stores lack strong branding, which is why those with a distinct brand gain loyalty and avoid price wars.

2. Charge Premium Prices

When people associate your brand with quality or status, you can often charge more for your products or services. Apple is a perfect example: its strong brand allows it to charge higher prices than competitors because it’s associated with innovation and status.

3. Increase Your Business’s Value

A strong brand creates a competitive advantage, often called an “economic moat.” A recognizable brand makes a business less risky for potential buyers, leading to a higher valuation if you ever choose to sell.

How to Start Building Your Brand

1. Define Your Values

Choose values that resonate with both you and your target audience. For example, if family is important to you, infuse that into your brand by creating a family-friendly environment and products. This alignment makes it easier to connect with like-minded customers.

2. Create Positive Associations

Use every aspect of your business—marketing, social media, design, and customer experience—to reinforce the brand image you want. If you’re aiming for a family-friendly restaurant, everything from menu to decor should reflect that.

3. Protect Your Brand Image

Building a brand takes time, but a single mistake can quickly damage it. To protect your brand:

• Align Your Actions with Your Values: Avoid hypocrisy; if you value family, run your business to support employees with families, too.
• Be Honest and Transparent: Trust is essential. Don’t make promises you can’t keep or mislead customers, employees, or investors.
• Take Responsibility for Mistakes: Owning up to your errors and making things right can prevent small issues from becoming big problems.

Ready to Build a Lasting Connection?

If you’re interested in creating a community around your brand, Russell Brunson, co-founder of ClickFunnels, has a best-selling book, “Expert Secrets,” that breaks down how to use storytelling to build a following. It’s available on Amazon with top reviews, or you can get a copy directly from us for free (just pay shipping).

So, is branding essential? Absolutely!

>>>Join The One Funnel Away Challenge<<<