Branding is one of the most important parts of any business. When growing your own business, every error you make means money out of your pocket, so why learn the hard – and expensive – way? Why not learn ahead of time which pitfalls to avoid?

As a corporate brander and an entrepreneur, I’ve seen (and made) a fair number of branding and marketing mistakes. I really believe it is because entrepreneurs see things differently. While in the corporate environment, we can clearly see where improvements can be made. Once we make the transition into our own business, we are so focused on what we want to do that we lose sight of what needs to be done.

In the beginning, the branding process sometimes takes a back burner to other “more important” tasks. Without even knowing it, companies often face a fork in the branding path; one direction leads to Brand Distinction and the other leads to Brand Extinction. Here are the top five things to keep in mind for Brand Distinction:

1. Know your value: Before you can begin the branding process, you need to understand your true strengths, and more importantly, your weaknesses.  Let’s suppose you run a dry cleaning business. If fast turnaround time isn’t your biggest strength, don’t focus all of your marketing and advertising on your turnaround time. Instead, focus on what you truly do well and better than the competition (e.g. getting stains out of delicate fabrics).
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2. Know your target: I have heard so many times “The bigger your target market, the bigger your business, right?” No. You can’t be everything to everyone. Your business won’t be truly able to reach your target market unless you can deliver a meaningful point of distinction. If you’re targeting all women 18 and older, you can’t show that entire age group how your product will help them because an 18-year old has different needs than a 50-year old. Find out what will appeal to your focused target market and focus on their particular needs.
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   Successful businesses know everything about their target from their education, salary, industry, kids, pets, interests, how many vehicles in household and whether they take cream or sugar in their coffee.  Seriously! So, get specific.
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3. Know your goals: At the beginning of each year, you should figure out and write down the goals for the year.  You should also figure out what the plan is for 5 years as well as 10 years and lay out a strategy on how to get to those goals.  (I don’t like scaring business owners, but this process is called writing a Business Plan.  I am not saying a small business needs a fancy 143 page document with graphs and charts. I am saying having a proactive tool to keep the business on a logical course is helpful. ) By not doing this, business owners can become comfortable where they are, and lose sight of the next step to keep them at the top.
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   Blockbuster, Inc. is a pretty good example.  Blockbuster busted out in 1985 and became the leader in VHS rentals, then upgrading to DVD’s and now Blu-Ray. Many movie rental stores came and went, but Blockbuster seemed to have the unbeatable brand. Blockbuster’s goal seemed to be solid and they were taking their brand global. In 1997, Netflix saw a better way to get movies to the population by utilizing the internet and mailing movies to their customers.  Quick, easy and the movies you want mailed straight to your home for a flat fee and with NO late fees. It took Blockbuster until 2004 to offer the same for their customers.  At that point Blockbuster was playing catch up.  And in 2009, Blockbuster was listed tenth on U.S. News and World Report‘s “15 Companies That Might Not Survive 2009.” On March 17, 2010 the company issued a bankruptcy warning after continued drops in revenue..
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4. You are the spokesman: No matter what you sell – and whether you like it or not – as an entrepreneur, you become the spokesman and figurehead for your business. Everything you do represents the brand of your company.  Be aware of how you dress, act and respond to people in person as well as online. I know everybody is sick of hearing about Tiger Woods and his personal brand in turmoil, me included, but it is a perfect example and I will leave it at that.
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5. Don’t be hard on yourself! Every entrepreneur makes a branding or marketing misstep now and then. If you have fallen prey to any of these mistakes, pick yourself up and do whatever’s necessary to correct them. Then, keep these Top 5 branding errors in mind. The more you steer clear of these blunders, the faster you will build a powerhouse brand for your business and enjoy the success you deserve.

The reason many businesses fail at branding is because they’re too close to it. Sometimes, you need a fresh perspective. Consider working with an experienced branding agency. Their experience and fresh set of eyes will help you to find the best way to position your brand in the marketplace.

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