Beloved by CFOs everywhere, EBIDTA (Earnings Before Interest, Depreciation, Taxes and Amortization) is the shining, indisputable measure of the health and profitability of a business. When EBIDTA is good, business is good.
Companies with the kind of EBIDTA that accountants brag about at parties are far more likely to be the companies with clearly defined, recognized brands in their market space. This has been shown again and again, not only by the Harvard Business Review but also by Mamie, our head of branding here at Red Letter.
Your brand is your business.
Our branding team gets a kick out of showing clients the clear correlation between brands and business. You can’t argue with facts. (Or you can, but not without damage to your dignity.) Companies that have invested in defining themselves—both to their customers and their employees—are more productive and more profitable. This is true in good times and bad. When every business is hit by recession, the ones with strong brands bounce back the fastest.
How exactly does one build a brand?
We can’t tell you exactly how, because the process varies for each business. But here is the gist of it. Branding is a long-term strategy that defines how your company will prosper. A strong brand will identify:
- A clear point of view on your purpose
- A clearly articulated, sustainable competitive advantage
- A memorable description of your unique values and personality
- A long-term plan for sustainable success
It is often the case that an organization has what you might call a latent brand. That is, there exists in the company an understanding of its values and its promise to its customers—but that understanding has never been explicitly articulated. Our branding team helps clarify these qualities, and makes them known internally and in the marketplace. The results show up in earnings reports.
A strong brand works in B2C and B2B.
Whether your company sells to consumers or businesses, a strong brand assures your target of the value of your product or service. This is true whether they’re shopping for carrots or bulldozers.
We could go on. But let’s talk face to face.
If you’ve read this far, maybe it’s time for us to chat over coffee.