Does Your Brand Have a Business? The Brand vs. Business Dilemma: What Comes First?

A stunning logo and sleek website might catch attention, but without adherence to its mission and solid operational foundation, even the most beautiful brand will crumble.

Big brands invest millions into developing and refreshing their brand identities, delivering impressive logo designs, websites, and seamless brand experiences. With the rise of entrepreneurship and accessible graphic design tools, individuals and smaller companies can now create brands in seconds, making visual brand development more pervasive and commonplace.

After observing brands for some time, I cannot help but notice a divide among small businesses. On one side, some businesses focus on bootstrapping services without clearly distinguishing themselves in the market. Conversely, some companies prioritise creating eye-catching logos and marketing materials but lack a solid understanding of their markets, business operations, sales targets, pipelines, and projections.

Running a business involves navigating a complex array of details and moving parts. It relies on intuition, continuous learning, and practical knowledge. Still, many small businesses invest heavily in developing their brand assets and neglect the internal structures—systems, processes, and values—that create a sustainable and profitable brand.

So, which comes first: the brand or the business?

The short answer is that it depends on whether you are focused on bootstrapping or simply looking like a legitimate business. Building a brand and building a business goes hand in hand. How and when your business brand evolves occurs at different stages of your business’ growth and development. For small businesses that invest too heavily and prematurely in branding without a solid business foundation, here are some of the traps I often see.

Social Media Culture - "Everything is on display, yet nothing is as it seems."

Online social platforms are vital for brand visibility and influencing consumer decision-making through social proof and other behavioural economics. According to Medium.com, “This digital transformation of social proof has created opportunities for genuine connection and business growth, but it has also opened the door to manipulation and deception.”

The notion of manipulation and deception may sound harsh. Still, the truth is that the parasocial relationships formed with celebrities and influencers, along with the widespread belief in overnight business success, have led many to develop unrealistic expectations about building a brand, on and offline. The actual situation for many large and small brands is often unglamorous. More often than we'd like to admit, they face issues such as a lack of strategic planning and focus, leadership and operational challenges, struggling company cultures, and poor revenue performance. While it may seem counterintuitive, these elements are crucial for thriving business brands.

Branding is Seen as the “Fun” Part of Business

The allure of developing a new logo for branding or rebranding can be compelling for organisations at any stage, from nascent startups to established enterprises. With the widespread availability of advanced digital design platforms, including Canva, Adobe Express, and AI-driven tools like Midjourney, experimenting with logo design may seem like an obvious progression.

However, the initial excitement of crafting a logo can quickly diminish if the endeavour is approached solely from an aesthetic perspective.

A brand’s resilience is predicated not merely on visual appeal but a robust foundation encompassing strategic intent, operational proficiency, and an overarching commitment to customer experience—elements that directly contribute to profitability.

As outlined in a McKinsey & Company study regarding the operational model's role in enhancing customer experience (CX), the principle that "structure follows strategy" becomes pertinent. According to McKinsey, “… one of the biggest roadblocks to greater CX impact if not addressed properly—is integrating customer experience into the organization and operating model.” Neglecting this integration can inhibit a brand's ability to function effectively and meet customer expectations in a competitive marketplace.

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Branding is a Fast Way to Create Credibility

Shooting stars fall fast; similarly, a brand that tries to establish credibility right from the start often meets the same fate. While effective branding can help build credibility for your business, sustainable credibility and trust are earned over time through consistent efforts. There’s more to branding than simply creating a logo and a beautiful website. Establishing credibility in business branding is a long-term endeavour. It requires a deep understanding of your company’s mission and values and how these elements influence your culture, operations, and customer experience. Deviating from these aspects can create cognitive dissonance, which may deter customers and be costly to fix.

The driving force behind these decisions can be understood through the lens of Behavioural Economic Theory, particularly the cognitive biases of immediate gratification and visibility bias. According to The Decision Lab, our tendency to choose immediate rewards over larger ones that come later—despite the immediate rewards often being smaller—can be traced back to our inclination towards impulsivity and immediate gratification. This behaviour leads to poor decision-making, prioritising short-term pleasures (a pretty logo, in this instance) while often neglecting our long-term well-being (a thriving and sustainable business brand).

When examining the effects of this type of decision-making on individuals and institutions, it is suggested that historically, "our immediate challenge of survival…” – a state in which many small businesses find themselves—“…took precedence over concerns or speculations about the distant future." This perspective helps to explain our evolutionary tendency toward these decision-making biases.

In short, the desire for immediate gratification often foregoes the potential for long-term rewards.

In this context, the focus on creating eye-catching branding without considering the bones of the business – strategy, operations, customer experience, etc. – detracts from establishing a sustainable business brand that would enhance revenue, ensure stability, and increase market competitiveness.

Your Next Best Move to Build a Powerful Business Brand is to Take a Step Back

If you’ve gotten this far, you’re probably wondering, “Well, what should I do now? Do I redesign my logo?” I will say it’s a good time to stop focusing on the aesthetic brand and step back to reassess your business brand as a whole.

Think about brand and business building like the tyres on a car. They must run in alignment with each other to endure the journey ahead. Taking a step back to understand your ‘WHY’ can be a great strategic move to future-proof your long-term growth. Start your discovery process by answering the following questions as a starting point.

• Why did you set out to start this business in the first place?
• What is the larger mission?
• Who did you set out to serve?
• What challenges are they facing, and how is your business brand the best solution for them?

Taking a step back to examine these questions and drilling down into what is and is not working well in your sales and revenue performance, company culture, customer behaviour, etc., is critical to building a successful business brand.

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This article is the first in a series about Deep Branding. In the following article, we’ll examine the business side of this brand versus business exploration to understand some common pitfalls and intersections between business and brand development.

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