Market research and framing the business idea
4. Building a brand
Building a brand is on the one hand a science in itself, on the other hand it is actually "only" a by-product of an intelligent business concept.
Today, however, the principle that every innovation, every new business idea should be devised by the brand already applies in some circles. That's not wrong either. Thinking from the brand's point of view means developing a holistic business concept right from the start that is coherent both internally and externally and where it is clear at all times what this business stands for.
The first approach - after a general examination of the economic viability of your business idea (i.e. whether you can earn money with it) - is market research. With it you have already determined who could buy your product and why or what your target group needs.
When it comes to a brand, many first think of the logo and a fancy website. But a brand is much more than just a logo. To be a brand means to have real recognition value, because you embody certain values and unique selling points.
The question of what makes you special and what you stand for is at least as important as the visual design. It is often said that a brand must be literally memorable. So, it must be worth remembering. That may sound banal at first, but it isn't.
If you are not offering a unique, completely new product, there are others who offer something similar. How can you now make it clear to people that they should buy your product (or use your service, etc.)?
An example: If you open a Turkish snack bar, there are probably already some of them. The fact that you offer "original Turkish cuisine" will no longer really be a USP (Unique Selling Point).
So it is important that you think before you even start, what makes you different from the other providers (really!). This is also essential for a business plan.
But what does it really mean to differentiate? That is always a tightrope walk. Realistically, of course, hardly anyone really has a unique innovation. But anyone who opens the tenth hairdressing salon in their neighbourhood has to offer more than USP:
- all top cuts of the season
- Appointment without advance notice
- Wash&Cut from 10€
In practice, it often looks something like this – but that has nothing to do with a clever brand concept. Why are some companies nevertheless successful with the 100th copy of the same business idea? Because demand is high enough. Then, and only then, can something like this work. Especially if you want to get a subsidy (e.g. a start-up subsidy), you usually have to pay close attention to whether the company has enough USPs.
Those who start up in the field of Social Heritage sometimes find it easier, because there is not much competition. Assuming that we want to open a towing museum where visitors can tow a piece along the old towing routes, there is (probably) not too much competition yet. The USP is then easy to find:
We are the only towing museum in northern Germany (if that's true).
But beware: never forget - having a unique selling point doesn't mean that it's a viable business idea. Perhaps nobody is interested in it. Maybe it's too expensive. Perhaps it is legally problematic. There are always several factors to consider.
Even if you have a USP, that doesn't mean you have to leave it at that. Other points can be added, for example:
- We only serve food that was available at the time of towing.
- We strive for sustainability: there is no plastic tableware etc.
The logo should embody these values. The best thing to do is to create a briefing for your graphic designer, which will be particularly important for your brand. You will learn exactly how to do this in the practical workshop this week.