If you are a startup, then you know how important branding is to you and your business. It is the only way you can get noticed by potential clients and get your first gigs.
The one mistake that many start-ups make is overspending on branding. The reason for this is, there is no clear or stipulated amount that one can say branding costs. Different companies will spend differently when it comes to branding. If you are stuck in this loop, here are some pointers on how much you need to spend on branding.
How to determine your branding costs
The hardest bit about branding is determining how much you should be spending on it. You might get different quotes from different places based on the website, logo design, and merchandise you want to get, so it can get complicated.
The first step you need to take is to figure out how much money you can use for your branding. Here are some of the things that will determine how much you spend.
The size of your business
How big your business is will greatly determine how much money you end up spending on branding. It makes no sense, for instance, for you to spend up to $100,000 on branding when your business transacts less money than that. To be on the safe side, it is recommended that you use between 5-10% of your earnings on branding.
Doing so will ensure that you are left with enough money to run other parts of your business while still reaping the benefits of your branding efforts.
The skillset you are hiring
If you do not know about branding, then you might have to bring in a professional. They will all charge you differently based on how much work you need to be done.
If you need them to help you develop a strategy on how to brand yourself and deal with the logo and the website, you are bound to spend a lot of money on them. On the other hand, if you only need a website and a logo, you will spend less on branding.
These two pointers are the guiding point when it comes to budgeting for your startup. Once you have this figured out, the next thing you need to do is to know what sort of branding your business needs. Your branding needs are what will determine the amount of money you will use. Here are some of the activities that happen under branding.
Logo and visual identity
You can attest to the fact that there are some logos you see and can immediately recognize. The reason behind this is the logo has formed the identity of the business. Choosing your logo is something that you should take seriously. Do not rush the logo design progress, as you might end up with something you do not love.
If you are unsure of what elements you should put into the logo or remove from it, keep it as simple as possible. You can never go wrong with simplicity in logos. You might have to take it through various redesigns to get it right, but it will be worth it in the end.
Another important aspect of your branding is your website. Every business needs to have a website as that is what is considered to be a formal representation of a business online. Apart from the brand you settle on, ensure you have a UX designer to see if it is user-friendly or need to redo the design again.
Apart from the site looking fancy, it should also be easy to navigate so that users want to stay on the site for longer. You might need to get content added to the site to increase traffic, so consult on that as well.
Get a company name
Getting a company name is a vital part of your business. Your name is what will be used when people are referring to you. It is also what you will use when you are filing tax returns. Take the time and go through your name options before you settle on one.
Once you have a name, make sure to register your business so that the name belongs to you legally. Doing this comes in handy, especially when copyright issues are involved. Based on your budget, you can also choose to trademark your name so that no one else gets to use it.
You might not want to do that at the moment, but it is something you should think about. You should also try to get the social media handles of your name and register the domain name of your name before others take it.
Branding is important because it is how you put your business out into the world. Without creating a brand, no one will understand what you are all about. As you plan your business and get funding, ensure you include branding as part of the activities you will be doing. It will go a long way when it comes to the growth if your business.