Oftentimes in small business you see two extreme points of view on the topic of branding. Some people will spend way too much on "branding" and others don't see the value at all and don't invest in it period. Both of these approaches are rooted in a lack of true understanding of what branding is.
Whether you're someone who thinks that there is no use for branding or you think branding is the only thing that matters, both of these camps generally align on a particular definition of branding. In this definition, the scope of branding is usually just limited to logo design. Maybe web design and some other design, but generally when people think of branding they immediately think logo.
The people that don't value branding are really just saying that a logo is just a bunch of shapes. I can not argue with that point. It is, after all, just some shapes.
People on the other end of the spectrum think that companies like apple and nike became iconic brands because of the shape that they used in their logo.
My approach is a bit different. I do think a good logo has value. However, having a good logo doesn't mean you have a winning business. I came across a quote the other day that said something along the lines of: Branding is an amplifier for a great business, not a solution to a bad business.
Your Brand is Your Rep
One thing that you must understand if you're in business is that every interaction a customer or client has with your business is branding. Every touch point. Every single time they look at something you post. Everything is branding. How you as the CEO or founder present yourself. If your office is dirty and cramped, that is branding. If your office is open and clean, that is branding.
In this way, your brand is your professional reputation. Its your street cred. Its the way people perceive your business. If you have a clean website, clean office, clear communication and procedures, big contracts before doing work, people will perceive you as a professional. If you're operating out of your mom's basement and don't have a website, and your logo is your name in handwriting on a sticky note, people will not value what your business has to offer.
In essence, branding is about understanding the impact of each decision you make. It's reverse engineering every possible touchpoint that a potential customer may have with your business and being intentional about how that experience looks.
I think its important to note here that you may see some companies that have good branding but they haven't spent a dollar on "branding", if what you're saying is true, how does that happen?
The answer, my young padawan, is a simple one. Some people just naturally have street cred, while others have to work hard to earn it. Leaders generally have values or principles that they believe in. The extent to which these principles guide their daily lives is the extent to which they are true to themselves. When you get a leader who runs a business and is true to his or her own values, and those values align with the values of the business that they are trying to run, then they don't need a "branding expert" to come help them out.
Impression Matters
Whether you like it or not, the way people perceive you has an impact on your bottom line. If people look at you and don't think you can design a good website because you don't have a website yourself, you're just setting yourself up for failure.
I remember in one of Muhammad Ali's interviews someone asked him why he drives nice flashy cars or something like that. His response was that people look at that stuff and then they respect you after that. They see this man's got a nice car, I'm going to listen to what he says. He said that having these flashy things are just tools to allow him to connect with and influence people. If they see him and listen to him then he can talk to them about Islam. He can talk to them about justice. He can speak the truth and they will listen. But if he was broke and he was making a bunch of noise, people would just dismiss him.
The unfortunate reality is that people give too much weight to the opinions of people who have a certain image. It is the same way when it comes to your brand. If your brand has a nice logo, nice website, and nice graphics, people will be more inclined to take you seriously.
All that being said, none of this matters without an actually good business model. If you have all the bells and whistles in a car but don't have an engine, you're not going to get anywhere. Going back to the main quote, great branding amplifies a good business. Muhammad Ali was a great boxer, and that was the foundation of his brand. He branded himself phenomenally well, he played a character that was silly and was overconfident abou this abilities. He would do this while also speaking out on issues and sacrificing his career for what he believed in. This branding - this alignment of his personal values and the actions he took - allowed him to have an impact way beyond the world of boxing.
Business is about People
I always like to come back to this point. This should be the north star of your branding strategy. There may be some businesses that don't need to spend as much on graphics and logos and web design, but they should still spend on branding. What does that mean?
It means understanding the people you are trying to connect with and being intentional about shaping the experience they have with your business. If your business is primarily driven by customers that come into a store or office, you're much better off spending money on creating a better experience in store for them. For example, the money you would spend on a killer website, you could spend on a nice seating area where people can sit down and bring their stuff to work on. This will have a more profound impact on your branding then spending thousands of dollars on a website.