Business or corporate brand

A business or corporate brand establishes and communicates an organization’s identity to all stakeholders, internal and external, including customers, investors, executives, managers, and staff. Corporate branding involves ensuring alignment of everything that goes into defining the organization’s identity, including the following:

• Mission statement: The organization’s overall purpose.
• Vision statement: How the organization plans to develop over time.
• Values: The beliefs, philosophies, and principles that guide the organization’s decisions and behaviors.
• Core competencies: The sets of resources and skills that enable an organization to deliver something special to the marketplace.
• Value proposition: What the company delivers to the market that drives consumer demand for it.
• Workplace culture: The way people within the organization generally think, behave, and interact. In a hierarchy, employees generally do what they’re told by their superiors, whereas in a more collaborative culture, everyone shares in decision-making and workplace management.
• Business strategy: The way an organization chooses to achieve its goals and remain competitive.
• Business activities: Daily operations, including marketing, sales, financing, customer service, and supply-chain management.
• Affiliations: Partnerships, associations, and relationships with other businesses and with consumers. An organization’s identity is defined by the company it keeps.
• Brand story: The narrative that relates the facts about a brand in a way that connects emotionally with people. (See Chapter 8 for details on how to compose a brand story.)
• Brand style: Guidelines (see Chapter 6) that establish the brand’s look and feel.

Note that corporate branding isn’t covered in detail in this book, although some aspects of product, service, and personal branding (which are covered in this book) may apply to corporate branding as well.

Corporate branding is long-term with a broad scope. Unlike product branding, which uses a narrow pitch and often adjusts its message to target different sectors and customer demographics, corporate branding strives to create a universal appeal over the long haul with strict consistency.

Product brand

A product brand is a set of unique qualities — including design, packaging, and advertising — that makes a consumer good easily recognizable and special in the minds of consumers. Product branding entails the following activities:

• Designing a recognizable and appealing logo (see Chapter 6)
• Coming up with a clever, catchy brand name (see Chapter 3)
• Establishing branding guidelines to ensure that all marketing has a consistent look and feel, and adjusting the guidelines to keep up with the times (see Chapter 6)
• Researching the market to better understand customers and competing products (see Chapter 3)
• Tailoring the message to appeal to different consumer demographics (see Chapter 8)
• Differentiating your product from competing products (see “Identifying or Creating a Niche Market” later in this chapter)
• Marketing/advertising via email, website, blog, social media accounts, podcasts, video, and so on (see Chapters 7, 12, and 13)

Service brand

A service brand is a set of unique qualities, including the service type and quality. How a service provider is marketed, sold, and delivered makes it trusted and valued in the minds of consumers. With product branding, you’re selling goods, whereas service branding is more about selling a relationship or an experience. Service branding involves being professional, likeable, and trustworthy at every touchpoint:

• Marketing materials, including business cards and brochures (see Chapter 10)
• Online marketing via email, website, blog, social media, podcasts, and video (see Chapters 7, 12, and 13)
• Sales meetings with customers (see Chapter 3)
• Service calls and other forms of service delivery (see Chapter 3)

The bottom line is that customers will choose the service provider they know, like, and trust most, so service branding needs to focus on informing prospective customers while instilling trust and likeability.

Personal brand

A personal brand is a person’s unique combination of skills, expertise, personality, and values that defines their identity and reputation in the minds of clients, partners, and associates and is used to advance their career. A strong personal brand positions someone as an expert in a specific field or industry or as an authority on a topic of interest. Personal branding is often used to launch a person’s career as a coach, trainer, speaker, consultant, author, actor, influencer, and so on. In a way, a personal brand is a business, product, and service brand all rolled into one with a personal touch.

Effective personal branding requires the following:

• Knowledge, skills, or expertise: Be good at what you do.
• Value: Commit to delivering value in everything from the content you use to market yourself to the products and services you deliver or recommend.
• Creativity and originality: To differentiate yourself from the competition, offer something unique.
• Authenticity: Be real, not phony.
• Exposure: Blog, podcast, post YouTube videos, join relevant social media communities, and make yourself available for interviews.
• Consistency: Find your niche (as explained in the next section), stick with it, and make sure that all your personal branding efforts are aligned.

To create your own personal brand, follow these steps:

1. Conduct a self-assessment to get to know who you are and what you can offer of value to others.
2. Decide who and what you want to be associated with (other brands, businesses, people, products, and services).

3. Identify and get to know your target market.

   Who’s your audience? Who’s likely to follow you and why?

4. Follow established leaders in the field you’re focused on.

   Find out what they offer of value and how they differentiate themselves. How can you differentiate yourself from them?

5. Network with others in your industry.

   Get involved in the communities where established leaders and your future followers hang out, keeping a low profile at first to get a feel for the culture and norms.

   Be careful not to step on anyone’s toes as you begin to network, at least until you get a feel for the community and people get to know and accept you.

6. Start to put yourself out there via blog posts, podcasts, social media, video, and so on.

Solving a difficult problem

People often ask sarcastically, “Are you looking for trouble?” as if that’s a bad thing. People who look for trouble are the visionaries and inventors of the world, and they’re often the richest and most successful as well. They spotted a problem, devised a solution for it, and created a lucrative niche.

Just think how many books, courses, and seminars have been sold to help couples solve their relationship issues. Consider all the commercial technologies that have been developed to solve problems in just one small area: data security. Entire industries have been created to solve problems ranging from not having enough time to shop for groceries or being unable to flag down a taxi to dealing with energy shortages and climate change.

In every problem is an opportunity.

Fulfilling an unmet need (or creating one)

People often need stuff they can’t get or can’t get affordably or conveniently. Sometimes, they don’t even know they need it or want it until you show them how much better their lives could be if they had it. Nobody really needed a camera built into a mobile phone, for example, but as soon as a mobile phone with a camera became available, everyone had to have one.

When you discover an unmet need or create one, you create a niche market that can be very lucrative. I once worked at Tower Paddle Boards, a direct-to-consumer paddleboard company. All the paddleboard brands in our industry sold to surf shops and outdoor retailers, so their products were pricey. But company founder Stephan Aarstol spotted an unmet need: affordable high-quality paddleboards. By selling direct to consumers, Tower Paddle Boards eliminated the retail markup and slashed prices without sacrificing quality. That’s how you create a niche.

Specializing to create a new market niche

You’ve probably heard the expression “A jack of all trades is a master of none.” You don’t see a lot of demand for a jack (or a Jill) of all trades or even a business that offers everything to everyone. Some of the big players offer all things, however, and are successful. At Walmart, for example, you can find a broad selection of products, have your vision tested, get your car repaired and your hair cut, and even have your taxes done. But even many of the big players have a niche; Walmart competes on convenience and price.

When you’re building and launching a new brand, you’re not a big player, so don’t try to be or offer everything to everyone. Eventually, you may want to reach a broader market, but start small by focusing on the needs and desires of a small segment of your market. This advice applies whether you’re creating a business, product, service, or personal brand.

To create a market niche, collaborate with people who are passionate about your industry. Most great ideas are born from creative thought and discussion among people with shared interests.

Offering something unique

Niche markets are often the products of inspiration. An idea pops into your head about something unique or a twist on something that’s been around for years. A case in point is the skin-care industry. Recently, this well-entrenched industry has been rocked by products with natural ingredients. Phthalates and parabens are out; fruits, veggies, and botanicals are in. The shift in demand for natural skin-care products created an opening in a very crowded market, allowing small business to make a big mark.

You can’t force an idea to pop into your head, but you can create fertile ground from which unique ideas are more likely to sprout. Here are a couple methods to try:

• Immerse yourself in the industry or the market you’re passionate about. The more information and insight you have, the more material your subconscious mind has to work with to generate ideas.
• Tune in to the news, and be sensitive to growing trends. Ideas for natural skin-care products, for example, came from concerns about potentially harmful chemicals in foods and other products.
• Broaden your interests; expand your mind. Ideas for unique businesses, products, and services are often the product of diversity or convergence — viewing something from a different perspective or looking at two distinct industries or markets side by side.

Incorporating your business

Incorporating your business is the process of establishing it as an entity separate from you as a person. As a corporation, your business gains certain benefits, including legal protections and potential tax benefits. From a branding perspective, incorporating your business may help build trust and credibility among prospective customers and clients.

When incorporating a business, you decide how to structure it — as a partnership, limited liability company (LLC), C corporation, or S corporation. If you are your business (you’re self-employed), your business is considered to be a sole proprietorship, and you stand to miss out on the benefits provided to corporations.

Choosing the right corporation type now can prevent headaches and hassles later, but you can change your business structure at any time. For my first business, a wholesale hair-tie company, I started as a sole proprietor. But when I started working with larger retailers such as Zazzle and Sephora, I decided to switch to an LLC to reduce my exposure to financial risk in case someone decided to take legal action against me for some reason.

In the following sections, I weigh the pros and cons of each type of business entity.

Registering your business

Registering a business simply means establishing it as a bona fide entity with state and local licensing and taxing authorities. If you’re creating a personal brand as a sole proprietorship, registering may not be necessary (depending on the jurisdiction and nature of your business), but if you’re operating as a corporation, your business must be registered.

Check with your state, county, and municipal government organizations or a local branch of the U.S. Small Business Association (SBA) to find out what you need to do in terms of registration and license for the type of business you’re starting.

Budgeting for your business/brand

To budget for your business/brand, create a list of everything you need to make it a success, research prices, and then add everything up. Table 2-1 contains a list of items to get you started. Depending on the business/brand you’re creating, you may need to add to the list or cross off some items. When you have a comprehensive list, research the cost for each item/service (on the web or by calling around), and write the estimated cost in the right column.

If your plan is to sell a unique product you’re going to manufacture, that plan can get expensive fast. And unless you’re 100 percent certain that the product is going to sell like hotcakes, manufacturing thousands of units can pose a huge financial risk. To reduce the risk, consider launching a preorder campaign. Make a small batch, and wait till the orders come in to make larger quantities. The down sides to this strategy are that customers may have to wait longer to receive their orders, and you may have to pay more in manufacturing costs per item. This strategy is just a test run, however. You can go all in when you see how popular your product is.

Creating a business plan

When you’re seeking any type of financing for your business/brand, a business plan is essential. Nobody (except maybe your parents or your rich Aunt Matilda) will hand you money just because you ask for it. Banks, investors, and organizations want to know that their money will be put to good use. Banks want some assurance that your loan will be paid back. Investors want a reasonable expectation that they’ll receive a return on their investment.

If you don’t already have a business/brand in place to demonstrate a proven track record of success, you need a convincing business plan. Creating a business plan is beyond the scope of this book, but make sure that your plan contains the following key elements:

• Summary: The summary should include what your business/brand is and does, and why it’s better than the competition; your bio and experience (and that of any partners or associates); the products/services you offer; and why you think your business/brand will be successful.
• Strategy, goals, objectives, and activities: Your strategy is your big plan or idea of how you’re going to achieve success. Goals are what you need to accomplish to execute your strategy. Objectives are measurable milestones you must meet to reach your goals. And activities are what you’ll do to meet your objectives.
• Market/competitive analysis: This analysis describes the industry or market and any existing competition, and shows how your brand is different from and better than what’s already available.
• Financial projections: This element is your budget to start and run the business (costs), how much money you’re expecting to pull in (revenue), projected profit (revenue minus costs), and how you plan to pay back any loans or reward investors. Prepare for setbacks, unexpected costs, and missed goals to protect yourself from underdelivering. It’s best to set benchmarks that have a margin for error to make sure everyone involved can understand the full scope of the plan.

For detailed guidance on creating a business plan, check out Creating a Business Plan For Dummies, by Veechi Curtis (John Wiley & Sons, Inc.).

Getting grants

Depending on your business/brand, you may be able to get a grant to finance it. A grant is free money; you never have to pay it back! Organizations offer grants for all sorts of reasons, such as to stimulate the economy, improve communities, and empower certain demographics (such as women in business).

The first step in getting a grant is finding one you qualify for. Here’s a short list to get you started:

• Government grants: Federal and state agencies make a point of stating that they’re not sources of free money for most business startups, but they offer limited grants to fund scientific or medical research and community, educational, and environmental programs. Here are a few resources for finding out more about government grants:
  • SBA Grants page (https://www.sba.gov/funding-programs/grants)
  • U.S. Economic Development Administration’s Funding Opportunities page (https://eda.gov/funding-opportunities)
  • The State Business Incentive Database from the Council for Community and Economic Research (www.stateincentives.org)
  • The SBA’s Small Business Development Centers database, which you can search at https://www.sba.gov/local-assistance
  • Your state’s .gov website
• Demographic-specific grants: If you’re a woman, veteran, or minority business owner, you may be eligible for grants from corporations, special-interest groups, or the SBA. Search the web for “business grants for” followed by your demographic, such as “business grants for women.”
• Corporation grants: Many corporations offer small-business grants or sponsor contests to encourage innovation in their industry or help entrepreneurs in certain groups start a business. Check with the big players in your industry to see whether they offer any grant programs or contests, or search the web for “corporate small-business grants.”

Be careful of any person or organization that offers help to get grant money. Some may be legitimate; others are scams.

For more about getting grants, check out Grant Writing For Dummies, 6th Edition, by Beverly A. Browning (John Wiley & Sons, Inc.).

Financing with debt and equity

Traditionally, businesses obtain the money they need to start and grow with either debt or equity. In other words, they borrow money from banks or sell a stake in their business/brand to investors. When you’re creating a business/brand, you have the same options.

Exploring alternative financing options

Private individuals and banks aren’t the only source of business loans. Here are a few alternative financing options you may want to consider:

• Merchant cash advance: If you’re selling stuff online and need some quick cash to cover an unforeseen expense, such as the cost of additional product when you experience a bump in sales, consider a merchant cash advance — a financing option offered by companies such as Kabbage (https://www.kabbage.com) through Shopify. Here’s how Kabbage works: You apply for a loan, and if it’s approved, Kabbage deposits the money in your bank account. Then it takes a percentage of your Shopify sales until the loan is paid off.
• Online business line of credit (LOC): Banks offer LOCs, but if your business needs some additional cash flow in a hurry, consider an online business LOC, which is easier and faster to get. With an LOC, you’re approved for a certain maximum loan amount and draw money out as you need it, paying interest only on the money you borrow. An example of a company that offers online business LOCs is OnDeck (https://www.ondeck.com), which offers an instant funding option that provides access to up to $10,000.
• Business credit cards: One common but often-overlooked option for short-term financing is credit cards, particularly business credit cards, which work just like personal credit cards but for businesses. Search the web for “business credit card,” and you’ll find a host of options.
• Microloans: Microloans are small loans with relatively low interest rates offered by traditional lenders, individuals, or groups of people. These loans are good options to consider if you don’t have much collateral or credit history. They’re typically prioritized for entrepreneurs in undeveloped countries and communities and for minority business owners. You can find microlenders through organizations such as Headway Capital (https://www.headwaycapital.com/microloans) and Accion (https://www.accion.org).
• Crowdfunding: With crowdfunding, you get a lot of people to donate, lend, or invest small amounts of money in your business. One of the most popular crowdfunding sites for businesses is Kickstarter (https://www.kickstarter.com). With Kickstarter, you post your project, your funding goal, and your deadline, and members can choose to chip in to make it happen. Financial backers get nothing in return, except maybe a T-shirt, a sample of your product, or a copy of a book you wrote. Mostly, they get the satisfaction of having helped bring something of value, fun, or interest into the world.