Brand value grows creative businesses. The value of the brand grows as business owners do the work needed to develop a good brand and protect it. Learn how you can build brand value and make your brand your business’ most valuable asset.
Brand value makes your business stand out and be valuable. Photo by Oleg Laptev on Unsplash
Why pay attention to brand value?
Let’s be clear: your business lives or dies based on brand value.
For many businesses, the brand becomes the most valuable asset. A good brand creates more wealth than factories, products, or any other part of the business. Think about what the largest companies in the world – Apple, Coca-Cola, McDonald’s, etc. – would be without a recognizable brand. Without brand value, these businesses languish as just another commodity. In other words, without the brand, they have nothing special. When they have nothing special, they cannot build a following or charge a premium.
To get a sense of this, take a look at this visualization of the world’s most valuable brands.
Brand value fluctuates. However, business owners can take control of brand value and build a valuable asset by following some simple guidelines.
Brand value comes from a good reputation.
A good reputation serves as a critical driver for brand value. Businesses build a good reputation by providing value for customers. Ultimately, the brand value comes from giving your customers a good experience so that they wish to do business with your company again or refer people that they know.
This means that your brand extends beyond just a name and a logo. It encompasses how you do business and how you interact with customers. The value of your brand arises from your customers’ perception of your brand. Smart business owners know this and attempt to make their brand stand for a desirable quality. For instance, a car company might wish to associate their brand with “safety” or “luxury.” A fast-casual restaurant chain might emphasize “low price” or “selection.”
Anyone seeking brand value must determine what the brand stands for and then deliver on that promise.
Brand value comes from having trademark protection.
To function effectively, brands need a solid legal foundation. That means that all brands need trademark protection.
For many businesses, trademark protection comes in the form of trademark registration. However, trademark protection extends beyond just registration and covers things like trademark clearance and trademark monitoring.
This means that businesses that take the issue of trademarks lightly end up making a huge mistake. Since the brand becomes a business’ single most valuable asset, getting proper legal counsel from the beginning makes the difference between a successful brand and one that fails.
Also, bear in mind that should you elect to register your trademark (and you should), the trademark registration process takes some time. That means that business owners must plan in terms of both time and budget.
Those that think ahead enjoy the rewards of trademark protection.
Brand value comes from proper usage.
The final element in building brand value comes from proper usage. By proper usage, we mean that business owners should develop processes that support brand value. Business owners should decide what is and is not “on brand” and create methods for operating that support that.
A business owner might develop a brand style guide. Additionally, a business might create a customer persona that indicates the type of customer that the company serves. These examples are just two of many things that a business owner must do to create a consistent and recognizable brand.
Another aspect of building a brand comes from being strategic in how your brand works with other brands. Often, this comes from practicing smart trademark licensing or other contractual arrangements. These tools ensure that the value of your business’ brand stays protected when partnering with others.
