Raj K Pathak

Connecting Entrepreneurs with Information,Knowledge & Networking

Why invest in Branding?

November 16th, 2013

An entrepreneur friend of mine is running a successful service company.His services are  in demand and thus his business is growing by leaps and bounds.

With a vision to expand his business,he approached a bank with his expansion plans which needed investment of Rs 6 Crores.Bank was happy to hear his success story,was satisfied with last 3 years of profitable  balance sheet and cash flow.What’s more,bank  was totally convinced about the success of his expansion plans.

The deal seemed to be almost done when the  Bank asked for collateral in return of extending credit for Rs 6 Crore.

My entrepreneur friend told the bank that though he is market leader in the segment, has a well recognised brand but  frankly  he doesn’t have any collateral to offer.The deal now seemed to be in soup.

But,all of a sudden the Bank itself suggested a way out.Bank offered to accept the brand of  my entrepreneur friend as the collateral.

Everyone smiled and shook hands.

Now my entrepreneur friend is busy rolling out his expansion plans.

That’s the power of Branding.

5 Reasons why your business needs BRANDing.

  1. When you have a well known brand, customers prefer you over others.
  2. When people are familiar with your brand,you are free to charge more for your products and services.
  3. You are able to gain loyal customers.
  4. When you have an easily recognizable identity – whether it is your brand name, your logo or your product, your target audiences are able to connect with you instantly and it gives them a reason to buy from you.
  5. When you invest in your brand, it becomes easier for people to choose your business over your competitors.

And finally remember,if you managed to develop a good well recognised BRAND,the investment in your Brand can help you raise funds  for your future expansion plans,as my entrepreneur friend realised,recently.

More on BRANDing,coming soon.Keep watching this space.




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