According to research, 90% of start-ups fail.
You have probably heard that statistic before. People mostly concentrate on what the 10% successfully do and how you can learn from it.
But it’s also important to consider which mistakes new businesses make when they’re starting out.
In particular, let’s investigate the top mistakes businesses make when starting a brand. Keep reading to discover common mistakes you DON’T want to make with your business. Let’s go!
1. Badly Chosen Brand Name
Your brand name is absolutely the most important part of any brand. Your name needs to be memorable, relevant and engaging.
If your customers cannot identify you by your name, you’re always going to struggle marketing your business.
You need to think carefully about your brand name before you choose one. Ask yourself the following:
How could this name be misused? You don’t want to end up a laughing stock because you have a ridiculous name.
Are we trying too hard? It’s not necessarily mistaken to come up with a clever and funny name for your company. But this can always go wrong and get confusing for your audience.
Therefore, if you’re not sure, choose a simple but original name.
2. Focus on Customers Later
The customer is always right!
That’s the motto of successful businesses. However, when you’re building a brand, it pays not to concentrate on your customers.
Even though your customers are important.
When you need to raise capital for your business and establish your network in the industry, your brand strategy needs to focus on investors and competitors more.
Once you’re already established, then it’s time to focus on how you can bring in the customers.
3. Don’t Forget Your Niche
What do you want to achieve with your brand?
It’s important to be aware of your niche market at all times. It’s easy to overreach!
You need to build your brand in a manner which recognizes that you need to offer something nobody else does.
If you’re selling the same product as someone else, you need to have a competitive advantage of some kind.
Maybe you’re more convenient or affordable? Perhaps you provide a better quality product?
Whatever it is, you need to make sure your brand reflects your niche focus.
4. Confused Visuals
Have you ever looked at a logo and wondered what it represents?
This is a sign of poor branding. You need to be immediately engaged by the brand’s logo.
One of the most important rules of branding is consistency.
Think about how everything in McDonald’s is Yellow and Red. What about how Coca-Cola always makes use of white and red in their marketing.
You know immediately that the product or commercial is related to the brand because you recognize the color scheme.
However, there are businesses that use every color in the rainbow to promote products. This creates confusion and should be avoided.
You need to discover how you can do the same thing for your business. Everything from your packaging to your correspondences needs to reflect your color scheme.
6. Neglect the Competition
No business enters the market without competitors. Even if you have invented a brand new product.
There are always going to be other players who are selling the old product which does the same thing.
For example, the inventor of the dishwasher competed with the seller of sinks and soap.
When you’re starting your brand, it’s important to be aware of your competitors. If there’s a big player in your niche who uses the color scheme blue and red. Instead, you need to go yellow and green.
Plus, don’t let your rivalry stop you from learning from your competitors. You can always learn from others.
7. Ignoring Your Target Audience
When you’re building your brand, it’s important to continually remind yourself who your target audience actually is. It’s easy to forget.
However, by connecting with your target audience via social media, you can directly engage with your customer base.
Ask them what they want to see from you? What are you doing well? What could you do better?
Social media is a valuable tool for receiving feedback from your audience. However, don’t let negative comments put you down. You don’t always receive constructive feedback on social media.
8. Overspending on Marketing
Of course, building your brand can involve a lot of your marketing budget. There are many things you need to spend money on.
However, it’s important to use your marketing budget wisely. Don’t overspend when you’re launching your business.
Many businesses go completely overboard with spending in the initial stage of setting up a business. Then, they don’t have any money left.
Make sure you diversify your marketing spending. This way if your online social media campaign doesn’t work, then your face-to-face marketing might pull off.
If you want to find out more about saving money on marketing your business, check out our resources here.
9. Not Standing Out of the Crowd
You need to stand out of the crowd.
There is absolutely no point in bringing out a dark colored soda with a red and white color scheme. You’re not going to be very successful.
You need to show your customer base how you’re different from the rest of the players in your niche.
10. Thinking Inside the Box
Lastly, too many businesses don’t think innovatively enough. If you’re always thinking inside the box, you’re not going to be very successful.
The most successful start-ups don’t re-invent the wheel. They realize an idea that has never been done before.
Is your product absolutely different? Maybe your brand appeals to an untapped audience?
Are You Starting a Brand?
Lots of businesses start off with high hopes. However, many of them end up making the same mistakes over and over again.
If you’re going to make a success of your business, you need to avoid these mistakes. Learn from the businesses that have come before you and do something great.
If you want to find out more about starting a brand, check out our website for resources and advice today.