Brand management for start-ups

Post-Covid, energy and economic crisis, pre-recession and a war in the middle of Europe: none of this sounds like the ideal conditions for founding a start-up. In fact, however, it has rarely been easier to found a company than it is now. Because money - especially that of private investors - is plentiful. And ideas too. But many venture capitalists only invest in tried and tested implementations. However, the path there is rarely easy and one thing is also clear: the more promising the business model, the more other founders have already had a similar idea.

So how can founders make their idea stand out from the crowd? The answer is simple: with a strong brand. The implementation, on the other hand, is not easy because, paradoxically, tech companies in particular, which (have to) be among the innovative spirits by virtue of their DNA, often do not have the topic of branding as a management tool on their radar. On the one hand, because they generally focus on technology with their idea and therefore think in technical categories instead of understanding their idea primarily as added value for customers. Secondly, because they often succumb to the fallacy that a clear positioning excludes certain customers and would therefore cover less potential. It is not uncommon for the desire to keep all options open to miss the actual need.

Once the idea has proven its potential and made it to the second round of financing, the core team is in place and initial successes can be demonstrated, the next step is scaling and going to market. With the two-year plan in the bag and the Head of Marketing on board, the founders now face a communication hurdle - both internally and externally: What really sets us apart? What is the emotional USP? Which customers are the right ones? - After a few internal rounds, the target image often becomes blurred and this costs energy, money, time and sometimes even success.

1. brand work = groundwork

Brand is everything and everything is brand. That's what makes it so difficult to grasp. Everyone understands the term differently. And the range is wide: brand is the logo, brand equals marketing, brand is design - somehow hard to grasp and even harder to become a brand. But it's not that difficult: a brand is not what you say you are, but what others say you are. This requires you to put yourself in the shoes of your potential target group. Successful brands have understood this aspect in depth and know how to use it to their advantage. When you talk about brand, you talk about perception. The first step is therefore to look at your company with fresh eyes, to become aware of what you stand for and what makes you different. The second step is to realize that brand is a tool to make your own strategy tangible and tangible.

2. keep it simple

Digitalization increases complexity and quite a few founders have a very large portfolio of offerings in mind. Every innovation usually offers numerous connection options. Different stakeholders, multi-layered benefits, new markets, various product derivations - perhaps even an entire ecosystem of touchpoints and services. The result: a complex brand architecture with sub-brands for each business unit, independent labels for technologies and a bloated product nomenclature. Sounds great, but it also causes marketing costs to explode in the medium term and usually confuses the customer.

Effective brand management, on the other hand, is based on the principle of "structure follows strategy". A clear offer structure, coupled with simple language, provides orientation and effectiveness. Those who set this up properly from the outset also ensure that everyone in the company speaks the same language.

Patrick Wachner

3. use your identity as an asset

Digitalization has also led to a focus on numbers, data and measurability. This has led to real improvement and tangible results in many areas. Lead generation is important, but purchasing decisions are (still) made by people - and they also want to be inspired.

The focus of communication - both internally and externally - is often on the product, but the company behind it is just as important for the prospective customer. This is also important for existing and future employees. A lived foundation of values and a corresponding culture ensure greater stability even in dynamic times.

Capital, talent and technologies are transient. The brand is the only competitive advantage that founders do not have to share with their competitors. Used wisely, the brand encompasses far more than marketing and communication. It becomes a value driver for the entire company.

4. inspire instead of explaining

A picture says more than 1,000 words. Why is that so? Because every picture immediately creates a feeling. Visual communication has a subconscious and emotional effect. This is why it is so crucial. Many marketers rely primarily on the typical functional sales arguments of flexibility, scalability and efficiency. Or, when communicating to consumers, they rely on performance marketing with short-term promotions or discounts. The result: interchangeable communication and a less loyal customer base.

Enthusiasm for your own idea often leads to long web texts that describe in detail everything the technology can do or the complexity behind it (e.g. AI or big data). This often ignores the foundation of success: The customer and the added value they get from the product or service.

And this is also the key to success: people want to hear stories! A good and exciting story not only provides sufficient content - at best, it inspires. Because people dream in pictures - not in bullet points.

Patrick Wachner

5. create a unique experience (CX / UX)

Digitalization has also led to a focus on numbers, data and measurability. This has led to real improvement and tangible results in many areas. Lead generation is important, but purchasing decisions are (still) made by people - and they also want to be inspired.

The focus of communication - both internally and externally - is often on the product, but the company behind it is just as important for the prospective customer. This is also important for existing and future employees. A lived foundation of values and a corresponding culture ensure greater stability even in dynamic times.

Capital, talent and technologies are transient. The brand is the only competitive advantage that founders do not have to share with their competitors. Used wisely, the brand encompasses far more than marketing and communication. It becomes a value driver for the entire company.

Conclusion

Your own brand is both a creative and strategic tool. A brand can reduce complexity and make technology tangible. It forms the guidelines for decisions and actions and ensures that focus is not lost. So if you cultivate your brand from the outset, you build up an asset and benefit in the long term.