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  • Shweta Pokharna

Why is Branding Important for Small Businesses?

Updated: Nov 20


Branding is undoubtedly one of the most important steps towards building your business. In most of the cases, small business often does not understand this fact and they simply overlook upon it.


As per small businesses, branding is just a not so important way of spending huge money which only big names in the industry opt for.


Additionally, they feel that, they should go on with their job and work as progressed. In contrast, it is ultimately not the way. In fact, branding is a process which makes you and your business stand out of the sea of companies present out there.


Visually, branding just seems to be a name, logo, design and representation in packaging of company’s different products.


But under the hood, there are many ways branding helps the business to grow and expand in the market. So, just do not be in a dilemma that branding is not for small business.

This is why here are few set of points that will make you understand the importance of branding even for small businesses. With that said, let’s get started.



What is branding?


As always before getting to the importance of branding for small businesses let us take a moment and understand branding. Basically, branding is the representation of any business through its respective products or services.


Branding can be done in many ways such as packaging design of the products, logo or taglines for the company, naming the business and many more. So, what branding does is, it helps you to be more recognizable in the market.


Just have a thought at any product category, be it super market essentials or high-end machinery equipment. Once you have that considered, it is pretty much possible that you have one brand in your front with respect to that category. This is what the magic of branding.


And as far as small business is concerned, branding helps them to create their own identity and stand out of a lot of companies already present. Still not convinced, then look at the following points to get the point better. With that being said, let’s begin.


1. Creates Trust :


Being a small business, you are new to the market and thus you also have only small user base as compared to the competition. One of the prominent factors that lies in the success of any business is trust of its customers.


So, branding plays a key role in building the trust of customers towards the business. When you represent your company’s ideology or features of any product with the help of branding, people notice it and relate that key thing with your company.


Also, do make sure that all those

promises or statistics you show of your company are backed with proper research. If you fail to fulfil those promises mentioned via branding of your product then in turn it you will be at huge loss. Instead of gaining users trust with

the help of branding you may end

up being a false mark forever.


Finally, not to mention, those customers who have achieved a promising trust towards your company or business will end up being the most faithful ones. This is why, make use of branding in an effective manner.


2. Build Recognition :


Now that’s fine that you have gained handful of trust worthy users for your business. But this user base is not enough. After all, the main motive of any business should be at bagging the market share and expanding user base. This is why, you also equally need to concentrate on building recognition of your business.


In the light of building recognition, branding will again help you do that with ease. With various means of branding you can focus of different set of target audience. As this in turn may return you a new set of customers from each category.



For instance, you can build a website mentioning the entire portfolio of your business in neat and modern standard. With this, it can attract the young generation and other netizens. Similarly, you can opt for other means too as per your requirement of target audience. As a result, this will make your brand recognizable and also bring you more new customers on board.


3. Helps in better Marketing :


As the basic nature of any business, either large or small, marketing is done in various ways. Marketing is an undefeated way of generating new customers. This formula works true for large businesses as they can invest huge capital to do so thus successful results.


On the other hand, small businesses are neither strong in capital nor in marketing professionals. In this case, branding can be used as a secret tool to scale up the results of new customers.


Imagine a random person distributing pamphlets of certain business and it is highly unlikely for that business’ name being registered into your mind. In no time, you may take it and either throw or use it for any different purposes.



For this reason, you need to inculcate branding into your marketing strategy. It can be certain followed colour model or straight and simple logo. With this extra step you will notice a considerable jump in the results.


Finally, one thing that holds true for any marketing strategy is consistency. The performance and awareness of your business, especially for small businesses, should be consistent in nature. Otherwise, the image and place of your business may slowly but surely vanish from people’s mind.


4. Gain Financial Value :


Another key factor that decides the scale of success of any company is its financial value. Ever saw the valuation of big brands in the world. Their valuation lies in billions and even trillions of US dollars. How can a company gain such tremendous financial value? And the answer is ultimately branding.


As an insight, Google, the popular search engine has a valuation of above $1 trillion. A search engine worth this amount of huge money. Yes, it is readily possible with perfect branding.



Indeed, branding does not convey that your business will be worth of that rare milestone in no time or few months or so. On the other hand, it says that branding supports in favour of your company growth and valuation.


Another vital thing to note is, results may not show up the next day or so but in long term it will surely help you to achieve a proper and well-established place in the market.

So, for the coming years, the result of branding will be realized with growth in customers and valuation in the market.


5. Benefits the Employees :


Up until now, all the points discussed were straight with respect to the business but this next point has a different point of view. Through branding a business will sure shoot gain profits with new customers and rising sales.

But at the same time, employees working for specific business will also be at the positive edge.



Just as an instance, for an employee working in business A and B where B has more brand value than A. In such case, not only the business A but also every individual employee working for that business A will certainly have good value.


So, with good added value to the position of employee the work quality will also be improved. Furthermore, with such improvement in work quality will result in promising employees. Ultimately, promising employees will keep overall business at profit.



Wrapping Up:


Coming this far, I am pretty sure that you have understood the importance of branding even for small businesses out there. But after understanding branding, one thing that most of businesses mess up is wrong choices.


Meaning, these businesses do not find any solid reason to hire a professional for branding.


But in reality, it is completely contrast. Remember, you are not the master of all trades and perfect branding is not a cup of tea for businessmen. So here comes the need of a professional graphic designer who can fulfil the stuff related to branding.


Also, considering the fact for small businesses, a freelancer will provide good value for the money you spend. If you further confused between freelancer and design agency then check this.


Lastly, let me mention that I am a freelancer under the field of professional graphic designer and if you are in need of one then check my studio www.dezineden.com along with my work profile here. On that note, looking forward to work with and grow your business. And let’s design something great together!




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