Small businesses make up a huge and essential part of our economy. In fact, there are 30.2 million small businesses in the United States alone. According to the Small Business Administration’s (SBA) Office of Advocacy, 99.9% of all businesses in the U.S. qualify as small businesses. Even more astounding, these small businesses employ nearly half (47.3%) of the nation’s private workforce. Small businesses are a powerful and influential piece of the economy. Unfortunately, they’ve also been one of the hardest-hit sectors of the economy amid the pandemic and its aftermath.
Throughout the pandemic, an estimated 9.4 million small and medium-sized businesses were forced to shut down. Some of these closings were temporary. However, some were unfortunately permanent.
Now, we are seeing many small and medium-sized businesses returning to work. In addition to this, many new businesses are opening their doors. One of the first things new businesses and first-time business owners need to consider when they open their doors is effectively branding or rebranding their business.
Fortunately, we know from our own experience how best to get out of this sort of crisis. In addition to financial reforms, branding and rebranding are important to the success of any business, especially small businesses. We have seen many times when rebranding helped companies to improve their situation after facing a crisis. For example, immediately after rebranding in 2008 & 2009, Walmart’s net sales grew by a whopping 15.8%. Another example is from 2014 when AirBnB decided to undergo a complete rebranding. This resulted in an astounding 80% revenue growth for the company over the next 2 years.
We have also witnessed the benefits of rebranding in our own UMBRA Creative Agency. This all started when LaPufic, suggested that we rebrand. Immediately afterward, the company’s profits grew by 20%. In addition to this, it is projected that by the end of 2022 this amount will increase to 75%. The theory of growth after rebranding was even recognized by Danielle Luliani and acknowledged in an article on the Boston University Website.
What is a Brand?
Before you can jump into rebranding your company, it is important to understand what a brand is and how to find the right one for your small business. A brand is something intangible that you identify with your business. In most cases, a brand is designed to make your business stand out from your competitors. Aspects of a brand include the name of your company, a logo, a sign, and your corporate identity or the way that you and your employees interact with customers. Branding is one of the most essential aspects of successful marketing.
Here is an analogy to further illustrate all of the components that go into building a strong brand:
Imagine that you are on a road trip, and you see a building appear along the horizon. As you approach it, you see it as a beautiful solid architectural structure that is yellow in color and built in the Art Nouveau style. This striking building stands out among the others. As you grow closer, you begin to notice its distinct elements: the bricks of which it consists, ornament, individual shapes, and intricate lines. These symbolize the elements of branding: brand values, mission and philosophy, identity, communication style, and promotion or marketing strategies.
Why is a Brand Important?
There are plenty of benefits to building a strong brand that stands out among your competitors.
Firstly, a brand creates an attractive image for the company to identify with. Having a consistent image will help your customers familiarize themselves with your brand and in turn, add value to your products and services. In addition to this, since a brand is considered to be an intangible asset, successful brand identities can add value to your business as a whole.
Another benefit of branding is that it can help you strengthen your position in the market and stand out among your competitors. As the visibility of your brand and products grows, you will be able to scale your business accordingly. Furthermore, your employee satisfaction will increase as your brand’s visibility grows. This is because people tend to be happier with their work when they know it is making an impact. As Your brand becomes more well-known, your employees will see the difference that they are making in your company and the lives of your customers.
Branding makes it easier for you to attract new customers. This is because your image is more consistent and will stand out in the memories of your customers. Through consistent imagery and advertising, your company’s outreach will strengthen, making it easier to reach your intended audience and draw in new customers.
As your audience grows, your company will eventually become recognizable and well-known as a leading provider in your industry. Familiarizing your brand with your audience is important because well-known brands are trusted. Furthermore, as your identity becomes more established, your customers will be more likely to forgive minor mistakes that come along with a growing small business.
First Steps To Building A Brand
Building a brand is about increasing the recognition of your product and holding a place in the memories of your customers. When you have a positive image and stand out from the competition, you will be more likely to find success as a brand.
Throughout the pandemic, we have seen brands undergoing tests for their strength. Some of the weaker brands were unable to stand up to this test, leaving them doomed to be rejected in the absence of demand. Simultaneously, well-deserved consumer brands remained afloat throughout the widespread period of crisis, even with declining sales. This is in part because of their striking brand identities and upstanding customer service. Contrary to popular belief, it is not the decisions of business owners nor the approval of journalists that determines the success of a brand, but rather its consumer assessments. To identify what their customer’s desires are, companies should conduct consumer surveys, asking them questions about how they feel about buying certain goods from their business, and the experiences that they have with their company. In addition to this, it is important to ask your customers what makes your business stand out among your competitors. This will help you have a strong point to begin from while you are building your brand.
If goods give consumers pleasure and joy, they are considered to be brands. In contrast, if the goods are purchased at random just because consumers met them on the road or because of their low prices, they are merely goods. If the goods were chosen due to some of their special quality characteristics and their prices are not excessively expensive, these are brands.
In sum, the pandemic has caused many entrepreneurs to rethink their offerings and business models. As a result, rebranding has become an essential step for business owners in various industries for them to continue to meet success and stand out from their competitors. Through this article, we have walked you through what a brand is, why it is important to establish a brand identity, as well as a starting point to help you consider the brand identity of your small business.
By Oksana Hoiuk