Create a Powerful Brand by Answering Two Questions Here is a common sense approach to branding for small businesses.

By Doug and Polly White Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

Massive benefits accrue to small business owners who can successfully create a powerful brand.

"A brand is a promise that when kept, creates preference and sometimes forgiveness," says Moses Foster, CEO of West Cary Group, a marketing communications and advertising firm headquartered in Richmond, Va.

He's right. A strong brand creates preference that enables you to charge a premium. It can also result in forgiveness when you infrequently disappoint customers because they know it's not the norm.

Related: How to Position a Brand for Breakthrough Success

Today's businesses understand the power of brand. There are entire schools devoted to branding and brand management. Fortune 500 companies pay high-powered ad agencies millions of dollars to help them develop brands. However, in our experience, small business owners don't need a complex brand strategy. Rather, they need a common-sense approach to marketing their products or services. We suggest starting by answering two straightforward questions:

What message do you want to communicate? A brand is much more than a logo or a tagline. It's everything that someone thinks about when he or she sees or hears something that identifies you, your company or your product or service. What image do you want in the minds of prospective customers? Of course, you want them to think about something that will cause them to buy your product or service.

This brings us to the primary question that every entrepreneur must be able to answer, "Why should a prospective customer buy my product or service rather than that of a competitor?" If, after some thought and perhaps seeking the help of expert advisors, you still can't answer this question clearly and concisely, our advice is to cut your losses and seek alternative employment. Conversely, having answered this question, you know what differentiates your product or service from the competition. You have the message you want to communicate to prospective customers.

Related: How to Build the Next Amazon Brand

What is the most cost-effective way to communicate your message? Almost all businesses will want to do the basics. You'll want to ensure that your business cards, website and letterhead are consistent with your message and with each other. Consistency is critical. We've seen too many companies suffer from "multiple brand disorder." Small businesses are unlikely to be able to afford enough impressions to communicate multiple messages. Be consistent every time you present yourself, your company or your product or service. Stay on point.

Depending on your business, it may make sense to spend money on proactive marketing (print ads, direct mail, search engine marketing, search engine optimization, radio or television spots, etc.). If you decide to do this, remember that markets are not homogeneous. Make sure that the segment of the market that most values the things that differentiate you from the competition hear your message.

It's useless to communicate to a group of people who prefer red if your product is blue. In fact, it may be worse than useless. Once you have identified the segment of the market that values your message, figure out the most cost-effective way to reach them.

A brand campaign can be incredibly expensive. It can be a black hole into which you throw endless resources without result. On the other hand, if you deliver a clear, well-targeted message that resonates with prospective customers through cost-effective channels, it can provide great value.

Related: How to Build a Brand That Attracts Die-Hard Followers

Doug and Polly White

Entrepreneurs, Small Business Experts, Consultants, Speakers

Doug and Polly White are small business experts, speakers and consultants who work with entrepreneurs through Whitestone Partners. They are also co-authors of the book Let Go to GROW, which focuses on growing your business.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Innovation

4 Ways Market Leaders Use Innovation to Foster Business Growth

Forward-thinkers constantly strive to diversify and streamline their products and services, turning novelties into commodities desired by many.

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business News

Your Old Apple AirPods Can Soon Act as an Over-the-Counter Hearing Aid, According to the FDA

The new software is compatible with the Apple AirPods Pro and accessible through iOS — for free and now FDA-authorized.

Business Process

The Best Times, Days and Months To Post on YouTube (2023)

When is the best time to post YouTube videos to maximize their effect? Discover the best time to post on YouTube in this detailed guide.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

Leadership

From Elite Athletes to Tech Titans — Discover the Surprising $100-Million Habit That Leads to Extraordinary Success

Success comes from mastering focus, eliminating distractions and prioritizing what truly matters.