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Why is Branding Important for Small Businesses?

In this post, we’ll answer a question that many small business owners find themselves asking: why is branding so important? It can sometimes become easy to get lost in the making of a product or service you’re trying to sell that as a small business, you pay less attention to branding. But in this day and age, branding is everything. Creating a brand identity can even make or break a business!

In the days of yore, branding was a simple logo, name, sign, or a combination of those things. But today, branding has never been more complex–especially with the digital revolution. Placing focus on your organization’s branding is more important than ever before. We’ll get into detail as to why is branding important below. Read on to learn how important branding is for small businesses.

What is Branding?

Branding is defined as a marketing practice in which a company creates a series of visual elements (name, symbol, font, design style) custom to that organization. This makes the company easily identifiable from other brands and helps distinguish itself in the marketplace.

Branding is also the public’s first impression of your company, and today, branding has come to include website experiences, customer service, brand reputation, social media profiles, and more. Companies today have to be more aware than ever to maintain consistent brand identity across all of their channels.

A company will well-executed branding can expect to see the following benefits:

  • A clearly delivered overall message
  • Credibility in the marketplace
  • Connection with potential customers
  • New buyers and customers
  • More loyal followers of the brand

Why is branding important?

We honestly could go on forever about why branding is important for small businesses. In short, branding is absolutely crucial because it has an enormous impact on how your organization is perceived. At the end of the day, it generates new and continuous business for the company.

6 Reasons Branding is Important for Your Business

Here are the more specific reasons why branding is so important for businesses:

  1. Makes your company more recognizable
  2. Differentiates you from the competition
  3. Brings more value to your business
  4. Attracts new customers
  5. Generates greater trust
  6. It’s the backbone of advertising


What would the world be without McDonald’s golden arches? Or Coca Cola’s curvy logo? Or the bright turquoise color of Tiffany’s jewelry? Just like these larger-than-life companies, branding is what gets your company noticed. It’s what people will remember about your company–helping them to come back.

People tend to do business with brands they’re familiar with, as it’s easy to recognize and brings credibility. Having a professional logo and color scheme is very important in making your company more widely recognizable and remembered.

Differentiates you from the competition

In the global market of today, companies have to get creative in ensuring their brand stands apart from the pack. It is more often the case than not that small businesses are no longer limited to local regions, but rather, exist online where they’re making an appearance on the world stage. This can be great because it gives small businesses access to a much larger pool of potential buyers. However, it also means facing up to a lot of competition. Hint: this is where branding comes in!

Branding is meant to be unique to your business. It brings home your company’s overall message and communicates your unique market value, and helps illustrate why there are no other businesses like yours.

Brings more value to your business

As your brand becomes more established and recognized in the marketplace, the consistency and strength communicated by your brand will inevitably bring you more business. Huge brands like Glossier, Wrangler, Apple, and more have become more than just the products they sell. In fact, the companies that trade publicly on the stock exchange are often valued more than their actual assets because of the estimated value brought by branding alone. But you don’t need to be a large conglomerate to have value. It’s clear that a good portion of business value comes from company branding and this rule is no different for small businesses.

Attracts new customers

As branding is most people’s first impression of your business, there is a lot of potentials there to attract a large number of customers. When a brand has been well-established and widely known to be reliable, it brings in a lot of referral business, too.

The companies (large and small) that become the most profitable are the ones that have marketed themselves as a leader in their industry, which can all be tied back to effective branding. Your ultimate goal as a small business should be to win over the hearts of customers.

Generates greater trust

A well-thought-out branding strategy will help to create more trust between the business and its current and potential customers. The better your branding is, the more legitimate your product or service will seem, which will attract more business.

Companies today are doing everything they can to generate greater trust with customers, from creating helpful blog content to posting funny memes on social media and implementing a cohesive color scheme. Brands in the digital age can interact with their customers on a more intimate level–creating even more opportunities to build trust. It’s essential that as a small business, you take advantage of all these tools available to you to connect with customers.

It’s the backbone of advertising

Any advertising strategies you carry out with your business will be a direct reflection of the larger brand. When you have top-notch professional branding, it makes creating an advertising campaign that much easier because you’ve already selected your visuals, colors, name, logo, and more.

Altus Brand Identity Packages

Now that you understand why branding is important for small businesses, what will you decide to do about branding for your company? At Altus, we know all too well that the individuals involved in a small business are already spread thin, which is exactly why we offer several brand identity packages.

You can start getting all the benefits of great branding without having to dedicate more of your valuable time than is necessary. After all, a good small business branding doesn’t just happen! You can contact our brand identity packages here. Or you can: 

Book a FREE Discovery Call

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