Branding for SMEs Made Easy – 5 Steps to Success

All too often we see new businesses with huge potential prematurely fold despite significant levels of financial and emotional investment. It's not always obvious to business owners why their ventures have failed, but amid the cluster of factors that can contribute to their demise, poor branding often emerges as one of the major contributory factors.

The effective branding of a business is critical to its survival. Without it, the firm merely blends in to the competitor landscape. The power of branding may not be obvious to the untrained eye, but it is the shrewd business folk who realise that aligning their product or service with a distinct and unique identity can be what separates them from the pack.

Follow these simple tips and it might just give you the competitive edge you've been searching for.

1. Understand what makes your target market tick

In order to reach specific customers and satisfy their unique needs, it's essential that you clearly understand their desires and motivations. It is not enough to simply target the mass market - a broad brush strokes approach will not elicit an emotional response from consumers. That's why it's extremely important to find out everything you can about the customers you intend to pursue. You have to understand how to speak into their listening, and build relationships by tailoring the brand experience according to the research you have gathered.

2. Define your unique proposition

Your point of difference, what distinguishes your offer from that of competitors, is your promise to the market. In order to effectively connect with customers your business needs to cut through the advertising clutter and assert your brand's uniqueness. After all, what makes you different is also what will give you the competitive advantage. But make sure your offerings are important to your target market and are not already being delivered to consumers by your competitors. Customers need a reason to select you, therefore it is essential that you demonstrate what benefit is derived from your product or service that is unique and will ultimately satisfy a customer need.

If you don't have a unique selling point, then make your brand itself your point of difference - by creating a set of powerful core values that customers can connect with and be inspired by.

3. Develop a name that expresses your core values, is memorable and is distinctly different from the competition

Finding a relevant, unique and memorable name is essential when branding your business. The business name and accompanying positioning statement should express the identity and communicate the personality of the business. It's a bad idea to name the business directly after the service you provide, for example, 'Garden Maintenance' or 'Computer Repairs', as this lacks originality and does little to set you apart from the competition. It's vital that your name is memorable and demonstrates the uniqueness of your product or service, as this will leave the door open to future business development opportunities and assist brand recall in new markets.

4. Develop an identity that visually expresses the brand essence

Your identity should be consistently demonstrated throughout all elements of the business - from logo, business cards, newsletters and website design through to interior décor, signage, typefaces and other business related collateral. Whatever the image is you want to convey, you must ensure that what you express visually is consistent. It's important to maintain visual continuity across all facets of the business so your clients or target consumers can accurately perceive what it is you're about. As the average person is exposed to thousands of advertisements per day, it is critical that the branding strategy you implement has a consistent message which reflects the essence of your brand and communicates your point of difference.

5. Develop a positioning statement to sit with the identity that expresses your unique proposition to your target market.

A well-crafted positioning statement establishes the direction of your business; it says what you do differently and builds on your unique proposition to the market. Your positioning statement should be active and generate a positive emotional response in the mind of your target market by making a promise. It should avoid being too broad, as overgeneralised positioning statements will fail to engage your target audience. This error can be particularly fatal for small businesses establishing themselves within a particular niche market or in an industry saturated by strong competition.Remember, strong brands rest on compelling and distinctive emotional connections with their customers.

In today's competitive business environment it is essential that business owners see branding as more than a logo. It should run through the veins of the entire business and be expressed across all mediums. Setting yourself apart from the competition is one of the hardest aspects of starting or expanding your business, but if it is done correctly the rewards are strong. An effective branding strategy, combined with a real thirst for success, will help take your business from one of the pack to the top of your game.