How creating a credible and engaging brand will help you raise money.
Investing in a credible brand image for your company, product or service is critical to raising capital. It not only makes you look like a winner, it instills confidence and trust in your potential investor.
Have you ever watched Shark Tank or Dragon’s Den? Most often, the entrepreneurs who get funding from the investors on these shows are the ones who have put a lot of thought (and money) into branding. If you show your audience that you are truly committed to your brand image just as much as your business, they will trust you. If they feel disconnected, it won’t happen. Engaging brands create buy-in.
Our 5 rules of brand engagement when raising money:
- Look the part. Your brand image is a direct reflection of you, your team, and your business. Treat it like business attire and grooming for the idea you are pitching.
- Keep it consistent. An engaging and unified brand platform instills comfort and confidence, and requires less explanation – comfort and confidence creates trust.
- Get real. A relevant and meaningful brand image evokes a believable, living and breathing entity that your investors can understand. It needs to seem real and possible.
- Be memorable. A memorable brand experience creates a positive and lasting brand perception. You want your potential investors to remember you, so be memorable.
- Believe it. Believe in your brand as much as you believe in your business. If you don’t, your investors won’t either.
I cannot emphasize rule #5 enough. Our agency recently helped two companies looking to acquire private capital to fuel their business. Both firms had spent money on elevating their brands. One firm just closed over $1M in financing and is well on their way to subsequent rounds of funding.
The other firm is still scrambling to find an investor. Why?
The problem with the latter firm is lack of belief. Although they have a compelling brand, but they just don’t believe in branding and marketing. They see it as a costly expense. The trouble with this thinking is that marketing and branding are critical dealmakers for investors. They want to know that you can deliver to your customers. They want to trust that you believe you can. It’s up to you to show them.
What has been your experience with branding and how it affects your ability to raise money for your business? Share your story in the comments section. We’d love to hear about it.
