For a startup in this world which is going more and more competitive with each passing day, branding is really crucial. Those startups which are not paying attention to branding in the initial phase are committing a grave mistake. The impacts of this mistake will resonate for long and all this while they will have to suffer irreversible damages.
Why is Branding More Imperative for Startups?
Established brands and big corporate houses have big coffers to offer heavy discounts and freebies, even if they have to take a little risk, but on the other hand, startups don’t have so massive funds to expend. That’s why startups need to put in immense effort to attract buyers who become their loyal customers. Just an idea is not enough to sell a product or a service; doesn’t matter how strong and fresh the idea is.
To get considerable funding you need to sell your offerings and that would happen only when people know your brand and they find it trustworthy. After all a business is established to earn profits and you can’t do it without selling what you are dealing in. That’s where branding comes into the picture. Branding can save your startup from joining the bandwagon of busted organizations. It sounds unfortunate but the absence of branding can really lead a startup to circumstances that compel it to give up. Besides, new investors are looking for brands which offer higher profits over those which try to increase sales through discount offers.
Where Absence of Branding Leads to?
As per an estimate around 67% of startups fail due to the dearth of branding. It means for every startup running successfully, or even running merely, two have failed. Isn’t that horrible? However, we can’t blame the idea they had while starting up. Many of these startups were founded with great ideas and they tried their best to capitalize on that, but still they couldn’t make it. These organizations spent considerable time on creating a product that’s flawless in all respects, and meanwhile they didn’t test it with potential customers. And when they decided to reach out to the target market, they couldn’t sell due to the absence of brand awareness. By this time, they were left with no or too little money to go ahead with and finally, they quit.
Therefore, it becomes imperative for startups to start generating income before their seed capital runs out. Brand awareness is crucial for any startup and it takes great branding efforts to become visible to the buyers. A startup can be commercially viable only if it adopts good branding strategies right from the beginning. You have to let buyers know about your existence quite shortly in order to attain commercial success. Only good branding endeavor can make you visible to your investors and establish you as a valued organization. That’s the reason startups require to consider branding as a significant part of their business strategy.
What’s the Role of Branding in Establishing Startups?
A company has to analyze the objectives of the organizations well before defining its branding strategy. Developing an effective branding strategy can make the chaotic process of achievement of goals very manageable for startups. It provides businesses with a far-sighted approach that helps in attaining required reputation and brand awareness in a short time. Products, teams, and customers may change, but if you are established as a brand, everything tends to revolve around it. Brand becomes the core of everything. A comprehensible brand strategy becomes a path to successful achievement of business goals.
Soon down the line, businesses will hugely rely on cloud technologies. So, more and more new startups will be encouraged to join the battle. And hence, branding will gain even more importance. The business world will belong only to those organizations which will be able to connect to people with a sense of trust, better known as brand image.