The Impact of a Startup Brand

Read time: 3 minutes

Today, let's explore the significance of a brand and why it is crucial for the success of a startup.

As we are aware, brands play a vital role in shaping our preferences and fostering loyalty towards specific brands, leading us to make repeat purchases from them. However, for our business, a brand carries even greater importance than we might recognize, particularly for startups.

Let's begin with this example 👇🏼

The Power of a Brand

• Provides a competitive advantage.

• Establishes credibility and trust with potential customers.

• Forms an emotional connection.

• Generates recognition for effective marketing.

• Demands an average price power 13% higher than weaker alternatives.

In terms of valuing a company, legendary investor Warren Buffet looks first at a company’s pricing power. 👇🏼

Let's explore the advantages of having a brand from a business perspective. Most companies aim to accomplish two main objectives:

• Enhance their revenue and market share quickly

• Effectively convert that revenue into net profit

Companies that are large and highly profitable typically have a higher value upon exit compared to small or unprofitable companies. Developing a strong brand greatly helps in accomplishing these two important goals.

Internal Power of a Brand

The internal benefits of a brand are often overlooked, but they can give your startup superpower, especially in the early stages. During a project for BCG Digital Ventures (now BCG X) and Volkswagen, we encountered the need to hire a design team. Initially, this was a challenging task because we did not have an established brand and were in the very early stages. We were relatively unknown. However, once we positioned ourselves as a modern brand, we found it much easier to attract high-quality candidates.

A brand serves internally in three key areas:

• Assembling an excellent team

• Securing funding

• Forming partnerships

These groups, no less than any others, consist of individuals who seek to feel a sense of connection to your mission and your brand when making a life-changing decision to work with you.

Why is a Brand so important even for early-stage Startups?

I frequently receive inquiries from founders regarding whether they should allocate resources toward building a brand before validating product-market fit and gaining traction. This question contradicts the principles of the "lean startup" and "test to success" methodologies that were embraced by many earlier tech companies. Given the constant influx of new companies entering the market, founders can no longer simply introduce an idea, gauge its momentum, and similarly refine their brand to software features.

🚨 Simply having a great idea, better pricing, or faster shipping is no longer enough to ensure business success.

If you only prioritize the functionality of your product without investing in your brand and establishing an emotional connection with customers, they may appreciate your product but lack a genuine affinity or loyalty towards your company. As a result, they may switch to a cheaper alternative or a brand with better features. In such a scenario, it can be challenging to both enhance your product's competitiveness and build a brand that resonates with customers.

💡Takeaway → Brand SOONER because if you don't build the right momentum from the start, you won't have the opportunity to rebrand later.

If you enjoyed it, I would greatly appreciate it if you could share it with friends who are interested in startup branding and growth. This would be a small reward for me. 💚

Catch you in a couple of weeks.

Cheers, Chris

Whenever you're ready, there are 2 more ways I can help you:

​Brand sooner Program → I have compiled all of my learnings into this program to help early-stage founders implement a unique brand correctly, saving money and achieving long-term success. Link 

1:1 Consulting → Need guidance and expertise to make your brand stand out? Join me for a 1:1 branding consulting session where we'll dive deep into your brand goals, target audience, and unique value proposition. Email me at [email protected]

The impact of a startup brand.