Branding: An Investment vs. An Expense

BrandingBusiness

Mar 12

More than just fonts and colors…

As a small business owner, it can be hard to focus on all. the. things. Taxes, inflation, shipping, cost of goods, marketing, online presence, etc. etc. I often see many small business friends who launch into the business with DIY logos and no branding at all. I get it - that can be an expense at the beginning of a business that seems frilly.

I challenge business owners to look at branding as an investment rather than an expense. Here’s why: when you invest in proper branding at the beginning it can catapult your business and lead to massive payoffs.

I know that sounds like I’m blowing smoke, but I’m really not! Sure, you can get by with a DIY logo to kick things off. In fact, in some cases, I urge clients to just start! There has to be some money there to invest in branding to begin with. I suggest investing in branding when you are ready to give your audience something to connect to, long-term.

Consider this - Target and Dollar General both have a brand. What that brand means to each person may vary - branding is rarely tangible. Target is a bright and shiny place where you can enjoy a Starbuck latte while you shop for your family, often covering all of the bases from clothing to household goods to groceries.

The Dollar General spares no expense in their appearance of cement floors, dingy lighting, and packed shelves of off-brand and knock-off clothing, knickknacks, and frozen food items. You might shop at both of these locations, but you are shopping for very different things at each store. Often, you will not find a Target near a Dollar General location, and most likely you wouldn’t see a Dollar General next to a Target. Why? Because the audience is different, and the brand appeals to different types of shoppers.

A brand is the set of expectations, memories, stories and relationships that, taken together, account for a consumer's decision to choose one product or service over another. - Seth Godin

What is the relationship your customers are having with your business? Have you ever thought about it before? The return on your investment happens here - when customers think and talk about your business, even after they have finished a transaction with you.

Investing in a brand designer should set the foundation of every sales campaign, marketing practice, and the product you sell. It all comes back to your brand - how are you making customers feel, what relationship are you building with them?

A strong brand will increase awareness, build an audience, and keep customers returning time after time after time. A strong brand will save you time in sales campaigns, and lead your decisions in product development.

CASE STUDY

Tolle Family Farms is a Registered Angus seed stock operation in Montana. They had a logo designed 20 years ago for their annual bull sale and their website hasn’t been updated in 5 years or more. This year, the Tolle family decided to invest in Brand + Web Design, which comes with a price tag of $10,000.

That isn’t cheap, and it is a hard decision to make. But when they consider the average sale of their bulls is $5K, they realize that new branding and updated websites only need to bring two new buyers this year to pay for their branding investment. Any new customers they attract next year from their branding investment will be profit on their investment.

Investing in a brand will save you time, and increase your profit. It should always be considered an investment, and rarely an expense.

This post contains affiliate links, which means if you purchase an item with my code, I get a small kick-back as well. But be assured, I am only sharing these products because I use them every day and love them just as well!

I’m Brenna - and I can’t wait to chat with you about all things business and rural life. Thanks for reading!

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