All brands are businesses but not all businesses are brands. Chances are you think you have a brand but really only have a business. What’s the difference?
- A business is a legal entity that exists to sell goods and services.
- A brand is a business that has developed a strong purpose, sense of self, and identity.
Anyone can build a business, but most never get to a place where they can call their business a brand. A brand is business personified; it connects with their customers on a deeper level.
Businesses on the other hand are only useful to the extent of their product’s effectiveness. That’s why we see big brands like Nestle position their products to evoke feelings of familiarity, family, and warmth (think Nescafe).
Brands have the influence to call their customers to action by supporting their cause/vision. Ex: Bombas: One purchased = one donated.
Brands are the businesses who can cultivate a cult following- people who are so devoted to that brand that they choose to only shop with them. Most businesses become commoditized- they are one of many options.
If you’re looking to build a business worth remembering and following religiously, you need to transition your business into a brand (here’s a resource to help you do that). Set a genuine differentiator, find its purpose. Give your business a reason to exist outside of making money.