Startup businesses can encounter some difficult challenges in getting off the ground. For several early stage entrepreneurs, their primary priorities consist of seed money, product development, and sales. Few if any are thinking much at all about brand building, primarily due to their belief that brand building is simply some sophisticated marketing that they cannot manage to afford.

For startup entrepreneurs, brand building is as important to their initial success as product development and raising capital. They can possess the most innovative and revolutionary product ever conceived, but if they can’t create a well-built foundation for conveying that value to the marketplace, odds are the business won’t go far. Developing a strong brand is vital to the initial success of startups.

The Everyone Will Get It and Will Love It Syndrome

Startups have the challenging and complex duty of communicating the value of their product or service in a way that matters to potential customers, backers and investors. Certainly at the beginning and particularly when startups are seeking investment capital, entrepreneurs have an affinity to assume that everyone will understand “the big idea” of their startup. As a result, they can typically show poor communication of their product or service value.

Like any new startup, learning to walk and stand in their perspective market involves falling and getting up, again and again. But the breakneck stride of the venture capital deal-making engine is not very forgiving to the slips and falls of startup founders, especially when they are not able to convey a compelling narrative of why their product or service matters to anyone beyond their mother.

The core of brand building requires an industry relevant and differentiated value proposition. Entrepreneurs must be capable of articulating why their brand matters to their core audience. The founders must keep in mind that at the beginning of a startup, nobody cares.

What Makes Your Startup Phenomenal And Unique?

About every market in every industry is a slush pile. Every year there are roughly 742,000+ new businesses, products, and services created into an immense ocean of ubiquitous similitude. For a startup to have a possibility of making it beyond the beginning phase, their unique value has to be clearly defined.

It’s an acknowledged and celebrated fact that startup entrepreneurs work for many consecutive hours, long days, weeks and years in their business. Few startup entrepreneurs will work on their business. Brand strategy is the process of working on the business. Possessing the intelligibility and the confidence to define that unique value in a compelling way is the initial step in building and developing a sustainable brand.

It’s essential for entrepreneurs to take an extensive, intense, introspective look at how they will discern and articulate why their business and product or service is phenomenal and unique. Understanding that we reside in a globalized environment of increased commoditization, relevant differentiation of value is the source code for building brand success.

Phenomenal and unique refer to the value the business provides to the world, which must be highly valued through a distinctly defined target customer and not in readily abundant supply elsewhere. When you are capable of identifying what phenomenal and unique is for your business, you will have the benefit of possessing a competitive advantage in the category in which industry your business is operating and being able to demand premium pricing as well.

Brand Strategy Is Not Simply Some Form Of Sophisticated Marketing

A  consistent misunderstandings startup entrepreneurs have about brand building is that it’s a marketing endeavor. In fact, even though brand strategy and marketing are interconnected factors they are two separate things. Brand strategy is concerning a startup entrepreneur knowing and understanding the DNA of the value proposition offered to the marketplace, but marketing is the process of delivering the brand message through diverse communication channels.

It makes no sense whatsoever creating ostentatious marketing plans without anchoring those plans into a highly developed guiding strategy about what the brand will stand for in the minds of a target customer. This should be excellent news to startup entrepreneurs, given that marketing is an expensive factor most startups merely can’t manage to meet the expense of appropriately.

Brand strategy requires valid factual market insight and creative thinking, whereas marketing requires cash. Marketing must always be a result of brand strategy and not the other way around.

Branding Begins With A Brilliant Name

Over an undefined period, an entrepreneur’s startup business will develop and grow. The business will acquire loyal customers; it will have fashioned trusted relationships and benefit from a reputation that will translate into greater financial value. All of these things will occur more efficiently if the business starts with a brilliant name upon which to build an excellent reputation.

Nothing is more important and valuable to an entrepreneur’s startup business than a brilliant name that can deliver strategic impact. Start by creating a distinguished name that will generate the interest, growth, and expansion of your business value over the long term.

The Three Brand Components for an Enduring And Strong Startup Brand

There are several definitions regarding what a brand is. Regardless of how the concept of a brand is defined, a startup brand requires three skillfully constructed components:

• Brand Identity:

  Is the essence of what the brand stands for to customers. It is “why” the brand exists and “who” the brand is. This is distinguished by the culture and or heritage of the business alongside the symbols, language, sounds and textures.

• Brand Experience:
  Is the tangible experience customers obtain in their interaction, relations, and transaction with the business. This is “how” the brand delivers on its promise. These associations are established in actual authentic life engagement with people, product or service, process and places.

• Brand Promise:
  Is the benefit and advantages your brand deliver to customers. This is “what” the brand provides that is highly valued and not in abundant supply. These associations are established in the emotional, rational and functional benefits customers obtain from the business.

One might consider these components to be the three methods in building the cornerstone of a strong and enduring brand directly from the beginning. All three of these brand components require development; they don’t materialize on their own. The process of developing all three brand components and bring them together in harmonious symbiotic alignment within the mind of the target customer involves balanced critical discipline. The remarkable thing about the three brand components, if utilized properly and consistently, is that they will enable your startup brand to replicate its beliefs and values to the marketplace and target customer with phenomenal credibility and effectiveness.

A Second Opportunity To Make A Phenomenal First Impression Will Never Come

Everyone has been told, “You don’t get a second chance to make a good first impression” before. For startup brands, that statement rings truer and holds even greater significance. Almost no matter what a startup brand is doing, the chances are that they’re doing it for the first time. The first presentation and interaction with a customer, employee, or investor must be clear, straightforward and compelling; there are absolutely no second chances to make a good first impression.

By understanding and strictly adhering to these six guidelines, an entrepreneur will be well on their way to brand success. They will have learned the rules by which the world of brands revolves and evolves, and will be able to find their niche of success within it.

It has been observed that middle market companies are crumbling, and start-up companies are crusading for a position as market dynamics are disrupted. At one end, the middle market segments that are scaling up continue to expand their footprint and influence; yet at the other end, the middle market is fragmenting further, and startup brands are battling for a larger portion of the market share as these fluctuations occur. While this is advantageous for the position of the startup, it leaves the position of the middle market company at risk as the fighting for a market per centum continues. In effect, the stability of the middle market position no longer exists. This market reality leaves most brands not knowing what paths to take; however there are five effective and viable options that are proven to work. Of these options, two options take the path of growing smaller while heightening profits, and three options focus on scaling larger.

Global Strategy for Scaling Up

Executing a global strategy places emphasis on attaining presence and eminence on the world stage. It can include a phased approach that looks to dominate areas of the globe in regions, or it can focus on rapidly growing across the entire world. Some companies set their sights on being a world eminent brand right from the start. This approach works well to disrupt the environment in markets where the traditional focus has been mostly local or national. Brands can succeed at thriving on a global scale when they center their activities on a world perspective, and associate themselves with events and campaigns that heighten their global influence.

National Strategy for Scaling Up

While the appeal of dominating on a global scale may be enticing, the market data shows that some middle market and start-up brands are growing at twice the rate of their globally focused counterparts when they give attention to national and local market segments. The brands that are successful with a national and local focus account for the majority of consumers’ purchases in their regions and tend to rise to be particularly more relevant in areas such as Asia and emerging South America. The successful brands in these markets utilize their closeness to the consumers to engage and develop a strong sentiment of brand insistence or loyalty. Effective middle market and start-up brands in this space use the national and local growth strategy because they understand the underpinned accents of consumer accessibility and habit. Doing this allows them to expand quickly by identifying and responding to consumer demands such as new flavors, product variations or marketing campaigns with a local or regional slant.

Rival Strategy for Scaling Up

Middle market and startup brands that find themselves stuck in the mediocre ranked position of four through six can use the rival strategy within reason to propel themselves to the top of the market. These brands are here to revolutionize and disrupt the market to the benefit of the consumer. For example, T-Mobile’s “Uncarrier” campaign challenged its industry by beleaguering the preexisting business model of mandating consumers to have a contract. By doing this, they gained 22 Million new subscribers and propelled themselves from a mediocre middle market telecom brand to a market leading position. Brands such as this make the brand more human by building in more personality and clarity of purpose.

Niche Strategy for Scaling Down while Increasing Profit

As the world is seeking for brands to move back to an authentic and particularly artisan vantage point, the opportunity exists for middle market brands to scale down and increase profits. Startups can also use this approach to pivot from their strategy of large scale and mass acceptance. Brands should look to this approach to demonstrate their ability to pay attention to detail and masterfully execute their product offering. They should also look to deliberately self-limit their scope to do one or two things exceptionally well. Doing this will reposition the brand to have a perspective and expertise that will manifest in a reputation for superior craftsmanship or rare and unparalleled execution.

Cult Strategy for Scaling Down while Increasing Profit

Many startup brands choose to operate under the radar, which could be a useful strategy for middle-market brands in order to scale down and focus on their core consumer base. Doing this develops a “found” rather than a “marketed” brand, and they are set apart from the mainstream. As a result, these brands produce a passionate group of consumer fans and an exclusive culture that remains largely unknown to the masses. These activities are what develops the cult brand mentality, one that centers on exclusivity and brand integrity.

Middle market and startup brands can choose any one of these five strategies in order to grow and scale their business. However, choosing only one strategy may not necessarily be the most effective approach. Brands can also choose to incorporate multiple strategies to use to their advantage. Doing this moves the brand beyond simple brand management into the management of brand systems. Brand management systems can utilize the intimacy of downscaled, higher profit strategies along with the broader approaches for scaling up. Whether you select a single strategy or system, the implementation must remain centered on the overall brand message, management, and identity.

Most entrepreneurs get it wrong when it comes to understanding consumer patterns. They develop a thought and look to see if they are correct by intricately studying people’s actions and reactions. Some entrepreneurs have taken the time to survey, poll, sample and exhaustively question consumers with the expectation of obtaining answers. Whereas, what they should be doing is studying their ideal customer’s habits and developing products and services that fit with how that customer archetype desires to behave.

When this approach is selected, the customer archetype will be pre-disposed to taking an action. Because we recognize that habits propel actions, a brand should target their efforts in encouraging new habits and tying the accompanying actions to their brand specifically. Habits are cultivated wherever and whenever there’s a consistent relationship between an interactive environment and repeatable experience. This simply means unless a brand creates a business model where they interact with each customer only once, their customers will develop habits related to their interactions with the brand. Strong brands capitalize on these routine behaviors of their customers. This type of phenomenon can only take place when brands utilize appropriate habits of their own.

Habit 1: Observe Rather Than Ask

It is a known fact that what people say they do, in comparison to what they actually do are different. It is factual in human nature, and also has been proven in science. The scientific theory that describes this is Heisenberg’s Uncertainty Principle. It states “It is impossible by definition to measure exactly the state, either the position or momentum of a particle. Due to the act of measuring it, by definition changes it.” If a brand wants to understand the behavior and actions of their customer archetype, they should observe what they do rather than inquire about their actions. Understanding this requires brands to get out into the marketplace to watch how their customer goes about their daily life. They must listen to not only what’s being communicated, but also what’s not being communicated by their customer, and then figure out how, where and when they can fit in. Observation is not enough to cultivate brand habits, which has also been proven in business and science. The scientific method states “you cannot prove a hypothesis through observation, you can only disprove it.” Therefore a brand must utilize other habits along with the habit of observation.

Habit 2: Improve Rather Than Break

Customers create their own habits in how they interact with brands. A brand must know what these habits are that their customers are creating, and the sequences of these habits. A brand must also understand why their customers created these habits in the first place. These habits and related insights must be documented, and cannot be replaced by studies and reports on demographics or SKUs.

Once understood, brands can then consider how they can influence making the habits of their customers more intense or improved upon without being disruptive. This is the optimal method, preferred over attempting to force customers to change what they have become accustomed to doing. An example that most have experienced is when a brand abruptly alters their packaging, either by introducing new colors, textures or the overall core design. This can be a frustrating experience for the consumer who is looking for the brand’s products on the store shelves. The consumer may become so disheartened that they seek to change to a brand that has done a better job of maintaining brand continuity, or one that hasn’t changed and they know and feel familiar with. This nature of customers in wanting to maintain habits is also explained in science, through Newton’s First Law. The law states that “an object at rest stays at rest, and an object in motion stays in motion with the same speed and in the same direction unless acted upon by an unbalanced force.” Therefore a brand should recognize that it is best not to try to change habits, but rather to improve upon them.

Habit 3: Incentivize Rather than Demand

If a brand is going to request their customers to change existing habits, it must provide a substantial reason to do so or incentivize. Brands should also be sure that whatever their change of habit is becomes seen as more valuable to the customer the more times they repeat the habit. Brands should also be sure they hedge the requested change in habit with an accompanying incentive that grows over time, and the incentive timeframe is long enough to allow the growth to occur. Brands must give their consumers a meaningful motive to change for sustained periods of time, or they will encounter the risk of their consumer losing interest or converting to another brand. This is also proven in science in Newton’s second law, which states “the larger the mass, the more force required to change its position.” The force that brands must show is in proper incentives, and over time they will change the habits and position of their customers.

By practicing these habits of observing, improving and incentivizing, a brand can reintroduce to the market a product that embodies a better way for customers to practice an existing habit. This “new and improved” product can be developed through studying not only the habits of a brand’s existing customers but also the habits of the customers of competitors. A brand can impact the environment of a customer, and present ways to improve upon their repeatable experiences. In effect, this turns the weaknesses of the competitors into advantages for a brand, and these advantages will have the backing of human nature and scientific theory.

Start-ups, small and medium companies frequently concentrate on elements of their business such as distribution, logistics, product development and service offering structures. Although all of these elements are important, they are sub-entities of an overarching element. The significant question that every company should in truth be inquiring and mulling over is: “What’s our value proposition?” or “What will we be valued for?” In short, companies should be focused first on their brand value proposition.

A brand’s value proposition is not about the company’s products or services. A brand value proposition is the articulation of a highly valued outcome or effect the customer desires. A clear brand value is a requirement for a company even to begin on the path to developing their business. It cannot be discovered simply by starting the brand, nor can it become established using marketing. A brand must provide a coherent articulation of their value at the very beginning of their journey to differentiate themselves and thrive. The brands that will succeed are those that can deliver value beyond and or before their competitors, in the mind of the consumer. These brands also will often deliver the value beyond or before their prospective customers’ expectations. A brand can give all the reasons why it believes it deserves to succeed, but unfortunately, the brutal reality is that a brand only stands out when and where customers think they do.

In every business category in today’s ecosystem, an increasing number of businesses are being commoditized due to the abundance of customer choices available. In this environment, it is the customer who ultimately determines who leads and who follows. This rule applies whether a business sells products or services and whether they are large or small. When customers possess an abundance of choices, the landscape of competition is always ferocious. The brands who come to dominate their market can convincingly signify an “idea of value” in the minds of the customer. This idea of value is usually in plain language and is not available from the brand’s competitors in their category.

Here are three key brand value models that a company can use to differentiate themselves. These models will require a company to answer the questions in the model with the clarity of vision and resolve of confidence in their current and continuous actions. By doing that, the brand can create a “competitive advantage” in the business ecosystem and marketplace.

Model 1: New Value Pivots on the Introduction of a Novel or Innovative Idea

This brand value model is addressing the game-changer territory. The game-changer territory is inhabited by companies who either provide an answer to an old, deep-rooted need in a new way or bring a novel and innovative way of accomplishing things to market that conceivably was not possible in the past. The ideas’ advantage may be conceptual, technical, or ecological. A lot of new companies and start-ups claim to operate in this space, but very few actually are this revolutionary or disruptive.

Model 2: Creating Improved Value or Creating Tangible Value

Companies with this type of brand value are seeking to rethink or revitalize a concept or model that consumers are previously familiar with, but are possibly discouraged and or frustrated by. Once one moves beyond the PR hype and advertising slants, most new businesses and the products they offer can be classified here. This “scion market” strategy is about building upon an already established consumer need and usurping existing companies with a novel product or service. The strategy can also be used to add to an existing consumer need, or develop a new base of consumer need. This is achieved either as a result of providing something that hasn’t been available up until now that consumers desire, or by drastically shifting trading structures like availability, price, and in some rare cases selection. This is a highly difficult space in which to become successful, for the reason that too many start-ups come into the market in this way. They also often enter the market with an arsenal of collected features that are looking for an end consumer, instead of designing their features with the end consumer in mind. Companies that follow this path can quickly find that their idea isn’t actually a business, and therefore they never become an actual brand. Alternatively, the companies that can bridge the inadequacies concerning what consumers want next and what the company offers can cultivate rapid progress.

Model 3: Cultivating a Perceived Change of Value

Companies and brands that look to provide a perceived change of value focus on redefining the emotional rewards of the market. These companies transform how consumers feel, sense, experience, and consider what they’re receiving from these brands in a whole new way. These consumer experiences are delivered by brands in manners that their competitors have not thought of, will not consider in simple terms, or simply cannot conceive. While this may often be thought of as up-scaling and is frequently done through design, perceived change of value can also undertake an alternative approach. It can “democratize” or “commoditize” a previously reclusive or exclusive market by allowing it to become more accessible. Or it can bring in a much-needed attitude to a market that produces a breath of fresh air in the minds of consumers. Brands that are successful with this value model can discover an emotionally disruptive vantage point by thoroughly understanding the psychographics of their consumer base. They can deliver enhanced levels of “usability value” in the minds of consumers that exceeds what the consumer provides in cash compensation. As companies and brands continue the persistent quest to be more “human”, and as commercial interactions become more personalized as experiences, this is the value model that more and more start-ups, small and medium companies will turn to for a distinctive starting or repositioning point.

Brand Value Model Mix and Strategy

It’s imperative to understand that these three value models are not mutually exclusive. The smartest start-ups, small and medium companies will look to find a brand value mix that combines at least two of these models of value generation into their strategy. The purpose of creating a brand value mix is to identify current and future value, and therefore be able to understand the value a company should be looking to deliver today and five years from now. Brand value mix will fundamentally define a company’s strategy and the positioning of its brand. If a company desires to be and remain brand relevant, it is vital for them to define brand value at the start of their endeavors.

Through an honest and transparent view of a company’s current position, an understanding of the brand value strategy can be defined. This brand value will allow the company to move forward with a clear purpose, and provide them the ability to plan for the future in a meaningful and consistent way. The value strategies can be combined to develop a brand value mix that is unique to the company and allows them to differentiate themselves in a crowded market.

There comes the point in business when startups and emerging companies are at the growth point, and it is a critical business need for them to take a strategic approach to brand development. However, often the whole process and course of action will begin and end with a shiny new logo and redesigned website. While it’s understandable that entrepreneurs and marketing teams will place a large amount of importance on the visual components of brand development, this approach is erroneous. As essential as these components may be in defining and expressing one’s brand, they’re not the foundation of what defines and characterize a successful brand strategy and development initiative.

If you’re an entrepreneur at the beginning stages of thinking about your company’s brand development in a more dynamic approach – and you would like your efforts to be perceived as more than the shiny new car – allow me to recommend seven ideas on how you can ensure your brand strategy and development initiatives will prepare your company for a phenomenal and unparalleled future.

Brand Strategy and Development is an Executive Choice.

Buying into a branding program or employing a branding firm is nowhere near enough for proper brand strategy and development; entrepreneurs must lead the whole branding initiative. This is true for startups, emerging companies, and established global corporations as well. Brand building is about the quality of your presence and eminence in the defined marketplace. Without the whole effort being championed and led by the founders, CEO’s, and entrepreneurs the process will break down in the organization and the ideas will die in the marketplace. Rarely are such endeavors like brand strategy and development delegated, due to the critical business decisions required. Brand strategy and development is also not a democratic process. If you have a committee with lots of opinions to accommodate, chances are the whole endeavor will get watered down, take twice the time to complete, and be half as effective.

Brand Strategy and Development Begins with a Clear Meaning of Purpose and Intention.

Every entrepreneur and company are in business to make a profit. Brand development is about defining the purpose of why the brand exists beyond profitability. A phenomenal brand exists for something more significant and transcends above the features highlighted in product development and the transactional nature of marketing and sales. Why your brand makes a difference to people must be manifested in the stated purpose the brand declares at its inception.

Brand Strategy and Development is about the Ability to Sacrifice.

The value your brand embodies must be placed in the minds of your target audience with exact and meticulousness precision. Brands reside in the mind, and the typical human mind has a limited capacity to remember anything complex or protracted. Brands that endure can exhibit a singular, simple concept that is inspiring and conclusively relevant to the target customer. If your brand doesn’t stand for one particular ideal, it will not represent anything to anyone.

Brand Strategy and Development is about What You Execute, not What You Verbalize.

Simply verbalizing something doesn’t make it so. How a company delivers on its promise to customers is more than creating charming taglines, flashy ad campaigns, and brochures. The entire company’s personnel must be informed and aligned with the guiding principles and beliefs of why the brand matters. Personnel must adopt and embrace the company’s beliefs and guiding principles as if they were their own and conduct themselves accordingly, whether inside or outside of the company. Brand strategy and development is about integrating the true ideal of the company’s brand purpose into its daily performance in the marketplace.

Brand Strategy and Development is not about Logo Creation.

Some early-stage entrepreneurs can get over-involved in the excitement of logo creation. However, this is a shortsighted mistake to avoid at all costs. If your brand strategy and development initiative begins and ends with a shiny new logo, you have failed to comprehend the entire point of branding. Logos are essential; however, they’re not the sum total of the brand. The right guiding principles and brand voice must be clear and stand behind the symbols that display the brand’s value. Logo creation is considerably downstream in the brand strategy and development value chain.

Brand Strategy and Development Initiatives Should By No Means Be Accomplished In-House.

I recognize this section may sound a bit self-serving being said by a brand professional; however surgeons don’t conduct operations on themselves, and you should by no means choose to conduct a brand development initiative in-house for the same reason. Many early stage companies believe they are saving money, but it’s a penny-wise and pound-foolish decision to tackle a brand strategy and development initiative in-house. Brand strategy and development is a highly specialized discipline that’s far different from advertising and marketing. If saving money is the rationale and motivation you have in thinking you can undertake this alone, think of it in this respect; what price would you pay to ascertain a successful outcome for increasing the brand value of your company in the future?

Brand Strategy and Development Initiatives Must Measure for Success.

It’s not sufficient to develop and execute a brand strategy and development initiative and then wish for great results. You must understand that it is a continuous process that will continue for the life of the brand. How your brand is delivering and performing against the outlined success criteria that were established at the start of the brand strategy and development initiative process is critical for enduring success. This will require you to acquire insights from the marketplace all along the way, and incorporate that feedback into your brand where appropriate.

Developing a brand can be exciting, as there is often an abundance of creativity and tangible results that are created from the concepts that are important to the founders and executives. The development process becomes a way in which the ideals of the company come to life in a visible way. By ensuring you have an understanding of these keys, you will have success in any brand strategy and development initiative that your company takes on.