A good brand takes an investment of a lot of time, effort and creativity but when assessing a businesses value, this investment can some times be overlooked. But can a brand really increase the value of you business?
When assessing a businesses value there are many elements that can be considered,
- Reason for the sale of a business
- Age of the business
- Assets such as property, machinery and stock
- Past financial statements and forecast sales
- Market conditions
- Brand equity or brand value
Many of these are tangible items or figures that can be worked out using formulas. But can you really value a business based on it’s brand?
The short answer is yes.
A strong brand can influence buying decisions and create relationships between a business and it’s consumers. A strong brand could therefore generate more income through consumers choosing their product or service over another based on brand elements (name, logo, packaging etc) and people’s perceptions of that brand.
A company with a strong brand has better potential to expand its product range, maintain and grow their market share through repeat business and consumer loyalty. It also gives businesses the power to charge a higher fee for for a product or service that is the same (or very similar) to another product in the marketplace.
Think about some of the go-to brands? Apple, Bonds, Nike, Coca-Cola. Why does the public continually support these brands? What factors affect people’s buying decision and to pay more for their products?
So how can you strengthen your brand?
- Create a great brand (this can include name, logo, packaging, web design, language, advertising etc)
- Secure your brand by Trademarking it.
- Continue to develop, strengthen and grow your brand and it’s personality (it does not stop with just a logo).
- Get brand advocates, i.e people who will speak favourably of your brand.