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6 reasons why a strong brand is important for your small business

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06 June 2019
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A logo is the first impression of a company. The greater the branding, the more valuable the company becomes, the more customers it gets.

So what exactly is a brand?! To answer this question shortly, branding is EVERYTHING.
How does a strong brand impact your business?

1. Branding improves recognition:

One of the major components of the brand is the logo. For example, how do we recognize Mcdonald’s immediately or Nike?

The logo is the “face” of the company and its design is critical since it is a small graphic that will be on every official sheet and every advertising campaign of the company.

In addition, a professional logo design is simple enough that can be memorized easily and at the same time powerful so that it gives the desired impression of the company.

 2. Branding creates trust:

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A professional logo immediately leaves an impact on the customers. It builds credibility and trust. People tend to purchase from businesses that appear polished and legitimate. Emotional reactions tend to convince clients more since they are hardwired in the brain and these reactions are very real influencers. 

3. Branding supports advertising:

Advertising is another component of the brand. Besides, the medium chosen for the ad and the demographic targeted audience build the brand. If the advertising focus is too narrow, the company risks being vanished and losing the ability to expand into new markets. On the other hand, if the focus is too broad, the company has to create a definable impression of itself in the minds of the customers.

4. Branding builds financial value:

Companies who publicly trade on a stock exchange are valued at many times the actual hard assets of the company. This value is mostly due to the branding of the company.

A strong brand usually guarantees future business.

Whether the company wants to borrow funds for expansion or to roll out to an Initial Public Offering, being perceived as more valuable will make the process advantageous for the company.

The greater a company’s devotion to build its brand value, the better the financial return from its efforts.

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5. Branding inspires employees:

Many employees need more than just work— they need something to work toward. When employees understand your mission and reason for being, they are more likely to feel that same pride and work in the same direction to achieve the goals you have set. Having a strong brand is like turning the company logo into a flag the rest of the company can rally around.

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6. Branding generates new customers:

Branding enables your company to get referral business. Would it be possible for you to tell a friend about the new shoes you love if you couldn’t remember the brand?

A large reason ‘brand’ is the word used for this concept is that the goal is an indelible impression. As the most profitable advertising source, word of mouth referrals are only possible in a situation where your company has delivered a memorable experience with your customer.

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The most profitable companies, small and large, have a single thing in common. They have established themselves as a leader in their particular industry by building a strong brand.

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