Your definition of a brand will be different to mine. The Intellectual Property Office says this about a brand
A brand can be a trade name, a sign, symbol, slogan or anything that is used to identify and distinguish a specific product, service or business. But a brand is much more than this; it can also be a ‘promise of an experience’ and conveys to consumers a certain assurance as to the nature of the product or service they will receive and also the standards the supplier or manufacturer seeks to maintain.
A brand is an intangible asset of your business and is often the most valuable part. So how much is a brand worth?
A brand is really only worth what somebody is prepared to pay for it. If you were to try and calculate what a brand was worth on a business already for sale then in theory you could take the amount the business is to be sold for, deduct its fixed assets and the remainder, often referred to, as "Goodwill" is essentially the value of that businesses brand.
Calculating the value of your brand is a far greater task and there are many methods that we will discuss another day.
Building Value in Your Brand
If you are looking to sell your business then developing your brand is going to be key. Here are a few areas we suggest you focus to add value to your brand and increase its value.
- Develop Brand Guidelines and stick to them. Deliver what you promise, and don't promise more than you can deliver.
- Use Brand Targeting to find the people who will drive revenue and profits into your business.
- Engage your employees and bring them into the brand, they will probably be around for the new owners of your business and they are what makes the machine work.
- Clearly define your brand in a document that allows anybody to continue your work. This reduces the work involved in taking over a business and allows the new owners to focus on other areas.