In the wake of the recent economic meltdown, my executive assistant noticed a surprising trend. (Actually we were putting together our holiday greeting card list.) Despite the long odds facing any new start up, our client base had performed extremely well. According to the Small Business Administration,  (see item #7)

Only…

• 70% of new employer firms survive the first 2 years
• 50% last 5 years or longer
• 33% last 10 years or longer
• 25% last 15 years or longer

Yet, of al

l the 90 companies and products we have branded in the past seven years, 74 are still growing strong. Only 18 are no longer in business. That’s a startling 82% success rate, and an 18% failure rate. All this, during one of the most difficult financial times in a generation.

This begs the question…

1. Does branding enhance company success?

or

2. Does branding attract a more qualified, experienced customer?

The answer probably lies somewhere in the middle. Astute business owners, the type that know how to run a good operation, also know the value of proper branding. And the process of brand development itself, clarifies a company’s core value proposition, it’s reason for being. So the branded client starts out with more clarity, certainty, and focus than most new businesses. Their elevator pitch is both defined and refined. Their message is coherent, compelling and memorable. Rather than stumbling to explain themselves, the well-branded client has moved beyond the initial hurdle of identity and into a deeper conversation of the benefits of their products and services.

These high rates of success seem to parallel those of the franchise industry, where established best-practices have a direct correlation on the odds of long-term business success. Branding, like franchising, provides a proven path of performance. For those considering starting a new business, strong consideration should go into the merits of branding. Whether due to the clarification that branding produces, or the unique brand identity that results, this type of statistical advantage is certainly worth consideration in any business plan.