Branding Matters -

I've had several clients and small business owners tell me lately that they can't start any new branding initiatives because they are cutting costs and streamlining their operations to help navigate the economic challenges. While I'll be the first to admit that the current economic situation should cause all of us to take a good, hard look at our business model, and that cutting costs and reducing expenses is a wise endeavor - I think there's a fundamental mistake in that line of reasoning. Branding shouldn't be considered a cost - and therefore be subject to 'reduction' - instead, branding should be viewed as an investment.

Branding as a Cost:

You see, if we view branding initiatives as a cost, we're always going to be looking for ways to get the cheapest deal. While this may be a good idea for shopping after Thanksgiving, it's not a good idea for your business. Why? Well, because I believe a focused brand strategy is the most important part of your business. In order to be successful, especially as a small organization, you have to build a brand that's different, relevant, and able to evolve.

Why then would you want to 'cut' this vital part of your business plan when times get tough? Typically, it's because your perspective of branding, and your perceived value of brand strategy is wrong. Whenever I think of a 'cost' I always have a negative view. When I think of costs I think of bills, collection calls, and money draining out of my account.

Branding as an Investment:

Alternatively, if you view branding as an investment, there are a few preconceptions you accept. For one, you expect to get a positive return on your investment. Secondly, you understand that in order to receive a positive return, it will take some time. Thirdly, you understand that the more you put in, especially in times where you can take advantage of situations to better position your investment, the more you will get out.

So apply those expectations to your brand. In times like these it's very easy to want to button down the hatches and remove all 'excess' outflows. This couldn't be more detrimental to your business. Because the markets will turn around and the economy will rebound. Where will your brand be when it does? Don't you think that it's better to position your brand now for success later? By viewing your brand strategy as an investment, it takes the 'negativity' factor away from what you put 'in' because it shifts your perspective from what you're putting in to what you will eventually get out.

This is how we should view our brand development strategy. We should be positioning our brands for long-term success, just like you would desire for any investment.

Practicality:

So does that mean spend your Amex balance on branding initiatives with no discernment? Absolutely not. I understand that tight times mean tighter cash reserves. All I'm saying is that in order to continue building a successful brand, and to achieve long-term success in the marketplace, you have to keep your investments separate from your costs. Because when times get rough, your costs are the first things to go. And if your brand is one of those, you'll be throwing the baby out with the bath water.

So how do you continue to develop your brand, invest in your brand development strategy, and position yourself for long-term success in a down economy? Here are some helpful tips to consider:

1. Force yourself to remove all aspects of your brand, brand strategy, and branding initiatives from your cost category and place them in the investment category - this could include your website, e-marketing initiatives, print campaigns, environment design, and marketing strategy.
2. Plan your marketing strategy around your brand goals, taking money out of the picture. Don't set your goals based on your budget, set your budget around your goals.
3. Once you've defined what you want to achieve, start applying your budgetary limitations. But don't budget your costs first, do those last, after you've allocated funds and resources to achieve your branding goals.
4. Understand that you may not be able to accomplish all of your branding goals - but by focusing on these goals outside of your expenses, you'll be more willing to devote funds and resources to these endeavors when available.
5. Research your competition and see where they are cutting back - there may be opportunities for you to take their place in certain initiatives.
6. Just because your customers aren't buying doesn't mean they aren't thinking about buying - by keeping your brand in their minds through strategic, targeted branding initiatives will help encourage them to choose your brand when they are ready to buy again.

If you let money rule your decisions, you'll only grow as much as you're willing to write a check.

In order to build a successful brand, especially as a small business or organization you have to stay motivated. You have to stay envisioned. And you have to keep brainstorming, and conceiving ways to position your brand to make the biggest splash. You must be wise with your finances and resources, especially in a down economy for sure. But you mustn't be limited by your current limitations. By viewing your brand strategy as an investment, rather than a cost, you'll be able to maintain a long-term perspective, and keep heading towards your goal.

In the course of building your brand, sometimes you'll be running towards your goals, sometimes you'll be walking. But you should never be standing still.

QOTD: How much are you willing to invest in your brand this next year? How will you achieve this even with financial and resource restrictions?

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About the Author: Jason VanLue is a graphic designer and brand consultant who lives in Orlando, FL. He is the Founder and Principal of FiveSeven Studios, a small interactive design and brand consultancy that helps small businesses and organizations grow their brands. Learn more about FiveSeven Studios.

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2. 3 Misconceptions About Branding for Small Business
3. 3 Keys to Succesful Branding for Small Business
4. Branding for Small Business - An Overview
5. Making Business Decisions: How Will It Affect Your Brand?