Why branding should be considered as the most important thing for small businesses?
Small businesses are often challenged with lack of resources i.e. time, money and people and while choosing how to spend and on what, branding is out of the question. However, branding plays an essential role in a small business. It influences the entire customer experience while they interact, engage and transact with your brand, its product and/or service. When done right, this builds trust, credibility and loyalty making your business more sustainable.

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Blog posted on

February 27, 2023
Branding for small businesses is much more than you might actually think, but it needs to be done right. Beyond just designing a logo that may be recognisable and memorable, it is important to build a strong brand identity as well. A strong brand identity not only increases the value of a company, but when done right it aligns the employees with the purpose the company is built for. This inspires the employees and provides them with a direction to drive the company towards fulfilling its purpose.
Micro, small and medium businesses are the backbone of any economy and contribute to the country in many ways. They are defined on the basis of their ability to invest and number of employees they can afford to hire. Building a brand was never a considerable factor for a small business till now. At the same time large businesses had the ability to invest much more than a micro, small and medium businesses and were able to spend money on branding, marketing and advertising. Because of their ability to invest, large businesses were able to capture a large chunk of the market share in a segment. Branding became a luxury for all of those micro, small and medium businesses that couldn’t afford to spend and felt it wasn’t meant for them.
However, times have now changed. With the increasing competition in the market place it is of an utmost priority for every business to become visible, recognisable and memorable in every way they can. The answer is simple; branding makes your business more visible, recognisable and memorable.
Most micro, small and medium businesses do not take the advantage of branding because they think that it is relevant only for large businesses with a large consumer base. But this isn’t true. Branding for a small business is equally important and being consistent with branding can create a large impact on their consumers.

“A brand is the most powerful thing a small business can build”

– Haarshit Gala

As we know small businesses face numerous challenges because of them being smaller in size and having limited capital to market and scale the business. A few day-to-day challenges a small business might face are; uncertainty of business, marketing to the potential clients, staying competitive, hiring the right talent, lack of technology, limitation of funds and more. Hence, they are unable to take full advantage of the things that a large business would be able to.

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So then why small businesses should consider building a brand instead of conducting the business as usual? The most significant reason is that a brand straight away differentiates your business from your competitors making it more recognisable and memorable. It creates a position for your business in the market place that is unique allowing you to attract the right customers. It brings immense clarity in the business that aligns you and your employees to take appropriate actions to grow the business. It increases the value of the company by creating trust and loyalty amongst consumers in the market place.
The purpose of building a brand as a small business is to define the ‘Why’ of the company – which is the reason for its existence and everything that it stands for. It is a reflection of an owner’s experiences, what does him or her value and believe in and the change he or she wants to bring in the society through its business. The purpose, values and beliefs acts as the core for a small business and becomes the single source of inspiration for everyone to drive the company forward.
While, large businesses may have the ability to invest huge amounts in branding, marketing and advertising; Small businesses can take advantage of branding as a way of doing business that defines their purpose, values, beliefs, vision and mission to create a brand story. This is the story that will inspire the audience and shares with them your intention of starting the business, the problem you see with the consumers, the solution you offer and the impact it will have in the community. It builds a connection with the audience and allows them to experience your brand as a consumer that leads to generating more business and creating profits making a small business sustainable in the long run.


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