While you’ve probably heard the term “branding” before, you might not know much about what it means, or how it can benefit your business. A lot of companies still assume that the word “brand” simply describes a company’s name and logo – but there’s a lot more to branding than you might think.
Not only can your brand help you to strengthen your relationship with your target audience, improve employee buy-in, and enhance your marketing campaigns, but it could also help you to sell your business toowhen you decide it’s time to explore a new venture.
Ultimately, branding helps you to improve the value of your company, and here, we’re going to explain how that works.
What Does “Branding” Really Mean?
Before you can begin exploring the benefits of branding, you need to know what a brand is, and what it does. Branding is about creating a reputation for your company – an identity that other customers and investors can recognize you by. This helps to ensure that when the time comes to sell your business, your would-be buyers know what they’re investing in.
As mentioned above, your brand is more than a logo or a selection of company colors. It encompasses everything you do and sayas a business. Your brand is the face of your businessand its personality. It defines what people should think and feel about your firm. Here are just a few reasons why branding could be the key to selling your company for maximum profits.
1. A Brand Develops Your Reputation
With a brand, you develop a strong, consistent image that makes it easier for consumers to recognize your company. The more people grow familiar with your organization, the more your traffic and leads will grow, as people start to develop loyalty towards your brand.
While branding is fantastic for generating consumer interest, it’s also useful when you want to earn the attention and respect of buyers for your company too. After all, investors will be far more likely to purchase a company that they’ve already heard about, over one that they have to Google. A well-known brand can generate both future businessand more opportunities for sales.
What’s more, since you’ll be pre-established in your chosen marketplace, your company will be more compelling to investors, because it should be easier for them to start making money fast!
2. Good Brands Show Sustainability
Another great benefit of having a solid brandis it that it helps to demonstrate the longevity of your company as an investment for your buyer. After all, anyone who considers purchasing your company will want to know that they’re going to get high returns on the money they spend. The fact that you’ve taken the time to develop a brand with a solid image and a strong customer following will work well in your favor.
Strong branding demonstrates that your company is in good health and has the power to continue growing in the months and years to come. On the other hand, a business that hasn’t bothered to invest in consistent branding might appear unprofessional and flaky in the eyes of an investor.
3. Branding Builds a Powerful Team
If you’re planning on allowing your employees to continue working with your business when you sell it to someone new, then it’s a good idea to work on building a team that’s just as desirable as the company itself. When an employee works for an organization with a good communication strategy, and a well-respected brand, they’ll be more invested in what they do.
When investors come to look at your company and see that your employees are loyal to the name you’ve built, and proud to show it on their resume, they’ll see just how much your organization is worth. A happy team of professionals reinforces the strength of your brand and what it stands for.
4. Your Brand Boosts Your Value
When you decide to sell your business, you want to make sure that you get as much money back from your investment as possible. Fortunately, companies with strong brands seem to consistently make more money than their counterparts. In fact, Millward Brown discovered that the medianprice of brands that held higher levels of customer esteem was 11% higher than an average brand.
In today’s competitive marketplace, consumers want to buy from companies they understand, resonate with, and trust. Organizations that spend time developing a strong brand have more opportunities to demand a high price when they’re selling their company. When your investor knows that they can make lots of money off your company in the future, they’re more likely to spend above the asking price on their initial investment.
5. A Brand Establishes Credibility
If you want to successfully sell your company, then you need to convince buyers that they can trust your firm. People are always more likely to do business with a company that has a professional and polished brand image. The right branding helps to showcase your position as an industry expert and help everyone you work with to feel as though they can trust your firm, the services you offer, or the products you provide.
In a world where reputation counts, people associate strong brands with powerful companies. The more you build the credibility of your brand, the more the people who are considering buying your company will feel as though they’re buying something that’s more “valuable” than “risky”.
6. Brands Generate Word-of-Mouth Marketing
We all know that marketing is key to the success of any company. However, when someone purchases your business, they’ll want to know that they don’t have to immediately invest in lots of marketing just to get you back off the ground. Fortunately, a good brand can get you to the point where your customers do most of the hard work for you, through word-of-mouth advertising.
92% of customers will trust information from other people – even if they don’t know those individuals personally. As your brand continues to grow, people will start to talk about it and reference your company by name. This gives you a great foundation for building positive word-of-mouth marketing results in the future.
7. Branding Can Protect You Against Negative Exposure
Finally, a great brand not only helps to develop your reputation, but it can also protect that reputation too. When you effectively build a strong brand for your organization, you’re less likely to find that the occasional slip up has a negative impact on your overall image. When people feel like they’ve gotten to know your company already, they’ll forgive the occasional slip-up, and see them as the mistakes they are.
Mistakes are common in any industry, and a PR campaign can help with this. However, your investors and buyers will want to know that if they do purchase your company, they’re buying something that’s strong enough to withstand the occasional issue.
Brand a Sale-Worthy Business
Ultimately, there are plenty of reasons why a building a strong brand can be important to your business. Not only does branding help to shape the image of your organization into something valuable for your customers, but it can also improve your chances of a sale when you decide it’s time to hand your venture over to someone new.

Jock Purtle is the founder of Digital Exits and Business Exits. Heis an industry leader and expert on valuations of high growth internet companies, website valuations, and website brokerage. He has been featured and quoted in publications such as Forbes, CNBC, Entrepreneur and Business Insider. Jock acquired his first company at the age of 19, and since then has acquired 3 different businesses over his career.