What is your brand worth?

By Carol Cartier, Principal, CATATILLA Design, LLC

I was having lunch at Bugatti's with a friend when I raised the topic of branding. I am curious if business owners in my community have the same philosophy that I do about the value of their brand-and if they were well-branded, they could sell their business rather than close up shop, for much more than a business that isn't well-branded. My friend was not even aware that you can put a price tag on a brand. What exactly does that mean? How does one put a value on their brand?

The concept of a brand seems so intangible—actually, it is intangible. News reports show Google's brand supersedes Coca Cola's brand--it is valued at $86.1 billion, according to BrandZ Ranking. They use a very complex formula for calculating a brand and that involves "primary research that reflects the perceptions of those who are actually brand users and consumers" among other things. This pretty much aligns with my perception that the definition of a brand is "the world view of who you are."

What does this mean to our local business owner, who wants only to build a business, or grow a little--or a lot? So I set out to find some tangible evidence that one can place a dollar value on a brand. A week ago I had coffee at Ava's Roasteria with Tom Reese of Pacific Continental Bank. I asked him, "do you take brand into consideration when funding a loan to a customer?" The answer is, yes--through their financials. His bank is more likely to provide loans to businesses who have taken the time to write a business plan, understand who they are, and want to be recognized for their high level of service and quality by their employees, customers, and community. This would logically be reflected in the financial statement as a wider profit margin. Their image could hold as much importance as fifty percent of the bank's decision whether or not to fund to the business. In other words, a business who has good financials is more likely to have an established brand, and therefore, is perceived to become more successful and go much further in business than its competitor who doesn't focus on its brand or image.

If you do intend to sell your business, you may want to consider where best to put your dollars when investing in your business. To help you get started, here are some questions you can ask yourself in assessing your existing brand:

1. What does my organization look like, and how is it run?
2. Does my business' brand identity reveal my core values, mission and vision--what my business stands for?
3. What does my business stand for in my community, and does everyone who works for me understand that?
4. Do all aspects of my advertising and marketing collateral project those qualities and standards that I wish to exude?
5. Does the demeanor of my staff, employees, managers, and company representatives project that level of service and quality in their relationships with each other and the outside?

What I am recommending here is a foundation upon which to build your business, which fully depends on relationships--personally and virtually. Once these things have been well-grounded within your organization, it is much easier for your customers to seek you out amongst the competition by recognizing that level of quality and service you know you can provide for your customers and your community. You will be well-recognized for that, and the referrals will roll in.

This is the perfect time, during the slow period, to assess where you are in the direction of your brand. When things pick up again, you will be better positioned in your market, more confident, and more visible as you advertise to your target audience.