As a small business one tends to cut as much as possible on costs. In lieu of the same, many small businesses make the mistake of overlooking branding efforts and hence concentrate on being business. Companies that invest in branding are perceived as the big fish with deep pockets and high marketing budgets. Small businesses restrict themselves to a logo design and perhaps a basic visiting card without paying heed to the design.

It actually turns out that this move can prove costlier to small businesses. Apart from not paying attention to one’s identity, small businesses ignore increasing value of the organization, motivating employees through an identity association and acquiring new customers through branding efforts. We take you through some points on why branding is particularly important for small businesses and why a portion of the budget should be allocated to the same:

a. Adds value

When a company (any company) presents itself in a professional way, it creates a good impression on your potential customer. They say that the first impression is the last impression. Well, branding serves as the first impression of your organisation that you have complete control over. Having your visiting card printed on a shoddy paper and with errors is certainly not a way to go.

b. Motivated employees

Employees find it easier to identify with an organization with visual branding appeal. This does not boil down to just the logo or the stationery of the company and goes beyond it. Your employees’ family and friends are also your potential customers. If they recognize your brand not by virtue of the employee but by virtue of your branding, it is a proud moment for the employee.

c. Assigns emotion 

Branding exercises assign the emotions your company stands for. Are you thought leaders, innovators, stand for the rights like women empowerment, LGBT etc. It is easier for customers to identify with emotions (positive at that) than to identify with names or business collaterals.

d. Communicates identity

The identity of a company is communicated through branding. Whether it is the designs, colors or interactive touch points that you choose, each leads to the same objective of getting your customer to know you. Whenever you meet someone new don’t you share attributes like what you like/dislike, what you like to eat or where are your favourites things in the world? Branding exercises are the same and let your customer know what your business really is and what it stands for.

e. Customer acquisition

If a customer knows you, they buy your services. It is that simple. Whenever a customer is given a host of choices to pick from and has no idea whose services to avail, they will go to the one they recognize or have heard of. Customer acquisition is an important aspect for not just small businesses but also big businesses. The retention of the customer solely depends on the service you deliver, but that comes after you have acquired one.

f. Company recognition

Branding provides for an easy way to make people take notice of your company. If your company is talked about and is visible to the customer, they recognize you. Some of the iconic brands are merely known through their logos. Whether it is the Apple logo or Google, the fact that they are easily recognizable and available makes them a known entity.

g. Supports other efforts 

You may be spending significant money on marketing (website, online marketing, setting up teams etc.) and employee acquisition, office building etc. To cut short on expenses on these efforts, a good way to do it is to invest in branding efforts. Branding supports the other functions and amplifies your efforts much easier than any other vertical of business.