Out of every 100 start-ups that are being born today, 90 die out within their first 120 days.
So much has already been said and written about the fact that majority of start-ups fail.
And I get it. There are, and always will be, early exits from the start-up scene. And lots of them. There is no way of avoiding that. The market is just too competitive. There has been exponential growth in the number of entrepreneurs in recent years. 672,890 start-ups were founded in the UK in 2018/2019 tax year alone. That’s 1,843.5 per day.
This blog is not about the fact that most of them will fail.
It explores how new businesses can launch and grow with a competitive edge. This blog is for those who are determined to succeed.
Conventional wisdom tells us that if founders manage to develop an MVP as quickly as possible, demonstrate product-market fit and create a strong, predictable and scalable revenue model, then their future will be bright.
Well, statistics tell a different story. Some start-ups that have successfully crossed the threshold of ‘product-market fit’, built a viable business model and shown early signs of a growing revenue stream… yet they still fail.
What’s going on?
The solution, in my mind, is simple. They’ve missed out one crucial ingredient. To increase their chances of survival, start-ups need to build strong brands.
A lot of the problems, associated with the increasing competition in the market can be combatted with one single solution – building an authentic, relevant and remarkable brand that brings positive change to the world.
Brand is the lens that bridges the gap between your business and your audience. It’s the instant nudge that helps people decide whether they want to engage with you. It helps you capture your audience’s attention – and keep it.
So, how can you make brand work for your start-up to drive long-term success?
1. Early branding helps you keep in the business for longer
At a certain point, you will have to create a brand identity to attract potential investors and clients. And because of the fierce competition, it should be done at a much earlier step than it used to be. This is your chance to stand out, but also to show you mean business. By showing you’ve invested in your vision you are signalling to that you’re in this for the long-haul, building credibility and sharing your story from day one.
2. It makes you memorable, with the potential to drive up your sales
Good brands give people an instant feeling of familiarity: ‘this is for me’ or ‘this is not for me’. Great brands couple familiarity with the unexpected: sparking interest (‘tell me more!’) to drive continued engagement and business success.
When you want to make people remember you during their shopping sprees, you must put enough effort and money in building yourself as a brand.
Garnering a loyal customer base can often be challenging – especially when there are just so many options on the market.
3. It creates customer loyalty
When your customers finally choose to convert and make a purchase, it is branding that will make or break the relationship. If your customers have a good experience that doesn’t just end with the purchase decision, they are more likely to come back for future purchases.
Don’t get me wrong. A great product with a market-fit will absolutely take your business a long way, but it is only a matter of time until your competition catches up. A strong brand will help you hold the leading position and retain and grow a loyal customer base.
See how we helped industry-disrupting start-ups like Shockledge and YoDaa stay ahead of competition and connect with their customers through a strong brand identity.
Do you want to cement your market position by becoming a brand, but don’t know where to start? Let’s have a conversation.