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Why is branding important for small businesses?

Writer's picture: John ParsonsJohn Parsons

YGTMedia Blog - Why Branding?

You should never underestimate the power of branding for small businesses.

You might think that strong branding is something reserved for larger businesses, with recognisable names and logos. But branding is both the first impression your small business makes and a way to create a community of customers, making strong brand identity essential - no matter your business side.


A common misconception is that branding is only about visuals, but a true branding process goes far beyond logos. Keep reading for four ways branding can help your small business.


1. Branding communicates your purpose to your customers

Branding is an effective way of communicating your WHY (also known as your brand purpose) with your customers.


This focus on your brand purpose is what will make your small business stand out from the rest and attract customers who identify with your brand values. Branding is essentially communication - it tells customers why you do what you do and helps tie together your visual identity, tone of voice, brand values, mission statement and business decisions.


2. Branding provides credibility

Once you have established your why, brand values and tone of voice you have an established brand identity. But don’t forget to ensure your verbal and visual identities align - branding should be approached from a 360 perspective to ensure your small business operates cohesively.


  • Verbal identity - This includes both what you say and what you write. Throughout the branding process you’ll shape exactly what makes your business different and the impact you intend to have on your customers. Focused messaging makes you look credible to your audience, encouraging customer loyalty.

  • Visual identity - Design is very much at the heart of branding. High quality branding instils trust in your small business and can increase the perceived value of your products or services.


3. Branding attracts talent and investment

As mentioned before, your branding is your small business’ first impression. Powerful branding helps you stick out from the crowd.


This applies to customers, but also investors and talent. Your small business is your passion and your branding should be something you’re proud of and help attract investors and talent who aligns with your vision and values.


4. Branding evolves with your small business

If you’re a small business owner, you know that you must leave room for change as your brand grows and develops. Effective branding will evolve with you to ensure you continue to stand out from competitors. But your branding should also communicate your business development with your customers, growing a loyal audience by taking them on the journey with you.


Ready to develop your small business’ branding? Get in touch to find out how.


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