Is branding a luxury or a strategy for an early-stage startup?

If you've ever worked in a startup, you've probably pondered over branding at least once. One of the conversations I had most frequently as a co-founder was, “Do we need to worry about branding even when our product isn't fully complete yet?”

If you view branding solely as a pretty logo or a cool website, it can definitely seem like a luxury for an early-stage startup. With limited capital, manpower, and time, startups must prioritize actions that are essential for survival. Developing core product features, incorporating user feedback, and market validation are all urgent and crucial tasks.

However, in my experience, when branding is approached as 'direction' rather than 'decoration,' it became the most important strategic asset for a startup.

The Opinion of Postponing Branding

The opinion of postponing branding is a realistic and rational argument. Investing too many resources into branding when the product isn't polished, or when the market's reaction hasn't been verified, can be risky. It’s understandable that in the early stages, startups should prioritize product development over branding since customers tend to choose based on the 'practical value' of the product rather than the brand.

Moreover, early-stage startups may need to pivot or change directions based on market reactions and customer demands. A pre-defined brand identity could become a hindrance during such transitions. In fact, we had to revise our initially set brand image multiple times based on market feedback. Each revision of the logo, website, and messages consumed considerable energy and costs.

The Opinion of Establishing Branding Early

On the other hand, there is the opinion that branding should be established early on. The reason is simple: the first thing customers notice when they encounter a product or service is the brand. The first impression the brand gives can influence customer trust and is a key differentiator in the competitive landscape.

Additionally, branding serves as a compass that offers direction for the internal team, beyond just a visual identity. Setting up the brand's philosophy and message clearly from the start allows the entire team to work towards the same direction and maintain consistent communication. This provides clear reference points during product development and ensures a unified experience at the customer interface.

In our team's case, the 'tone and manner' of the brand established early on greatly assisted us in customer service, product development, and content creation. Although there were multiple changes in visual aspects, the core values the team aimed for remained unchanged from the start, ultimately providing stability and gaining trust from our customers.

My Thoughts on Early-Stage Startup Branding

Based on my experience, the best attitude for early-stage startups towards branding is “light branding, deep reflection.” Creating a brand that's overly heavy or perfect makes it hard to respond flexibly to changes. But moving forward with a product without any framework can lead to confusion not only among customers but also within the team.

Early-stage startup branding is more akin to setting a direction rather than a fixed identity. We used to call it “compass-like branding.” The design of the logo or website might change, but it’s essential to clarify from the very beginning how we communicate with customers, the values we pursue, and our perspective on the problems.

Ultimately, branding is about how the product or service is remembered by the customer. Planning how the team will approach the market and customers with what attitude and voice from the early stages is not a luxury but a necessity.

A Simple Branding Checklist

Here are a few questions to quickly assess whether your startup has proper branding in the early stages.

• Who do we want to solve problems for?

• If our brand were to be described in one sentence by a customer, what would it be?

• What tone and attitude will our brand use to communicate with customers?

• What are our core values, and are they consistently reflected in our product or service?

This checklist serves as a reminder that branding is the process of establishing relationships with customers from within rather than focusing on the appearance.

Finally, branding in early-stage startups is closer to authenticity and consistency than perfection. I hope this article helps your startup grow into a successful brand.