Many small companies do not think that they need a brand. Actually, this topic has been covered by many speakers and writers who talk about branding.

Mostly, everyone is saying the same thing - you need to brand yourself. And of course, there are a ton of reasons why that is a good thing. So, if you are running a small business, how should you brand yourself and is there really a benefit to spending money on branding?

Paying a few thousand dollars to have a brand guru come in might not be the best option, especially for small businesses.

Before I go on, I want to make one statement - don’t be fooled by the big guys.

You see, many of us look at the big brands and we can understand why they do branding, advertising, marketing and promotions. Then we turn around and look at our little print shop or deli and wonder how that is relevant to us. And we think we do not need branding. After all, Jack comes in every morning for his coffee and Mary takes her bagel, with cheese; and they don’t really care the color of my logo. Actually, I just want to suggest that they do care. But maybe not in a way that you would like them to care. And in many case, you don’t care. And that makes it a moot point, doesn’t it?

Many small businesses do not take their own branding seriously. They do not see how a small business like theirs can benefit from a brand. Branding is a way of telling your customers what you stand for, and therefore, what they are getting. You would be surprised, that when you close your deli, and the new owner sets up shop, Jack might no longer get his coffee and Mary no longer needs her bagel. Why?

For small companies, branding is not about big, glitzy campaigns. Branding is about providing a consistent level of service, quality and value - and doing it with a consistently recognizable “face”. That same cup with your logo (or name, if you don’t have a logo). The same brown, eco-friendly paper bag. The tinkle of the door bell when a customer enters. Yes, even your welcoming smile. It all adds up the the total experience of buying something from you. Over time, that becomes your identity. Over time, you would have established your brand, like it or not.

So, small companies do need to brand themselves. But maybe not in the same way as the big boys do. Do you know what you need to do? If you have no idea, you might want to start with a simple Quick Branding Package which you can do online.

I want to suggest that to have your branding strategy started, do a simple survey as ask:

- what your customers like about your products/services
- what they like about your company
- what your suppliers think about your company
- what your staff like about your product/service

Once you have an idea of what your “brand” represents, you will know the priorities and the choices you need to make in order to maintain it. No need for the big bucks if you are small, but that is no excuse for not doing a few simple things to ensure your brand is clearly and properly communicated.

In a recent report released by MasterCard (Brand Preference of the China Affluent), the affluent in China has a preference for foreign brands. When asked about the most important factors for this preference, Quality (92.7%) came out tops. This was followed by global brand recognition (68.3%) and fashionable design (58.5%).

Well, “Duh!”

What are brands? They are the promise of delivery. A brand tells you things about the product or service simply by being true to a list of characteristics. When you pick a brand, you know exactly what you are getting, how much of it you will get and what it will cost you.

Look at the recent tainted milk incident in China. Before that was the luncheon meat (ok, spam for you) and then a few other incidents here and there. This kinds of slip up do not bode well for the industries in China. Above all things, quality is important. Would you drive a car that will fall to pieces at 60mph? Or a phone that refuses to connect in an emergency?

I am all for market surveys, but some are… well, unnecessary. Brands are just that, brands. Foreign or local, there is a difference only in so far as its percieved quality and reputation. If all the world were one country, there will still be a preference for brands. BMW over Toyota, Lexus over Saab… whatever it may be, people will have their preferences.

As marketers, we need to understand that to deliver on the brand promise is of utmost importance. That takes more than briliant marketing. It requires the efforts of the entire team, company. We can be the cheerleaders, but if there is no game, there is nothing to cheer about.

Some references:
Guangzhou news
China Daily
AsiaOne
BBC News

When we think of leaders, we think of someone who has vision. He has the “big picture”. He knows where he is going.

The difference between the strategic view and the tactical view is quite straight-forward. The tactical is concerned with the here and now, while the strategic view takes into consideration the longer term. If you have heard the saying “Win the battle, lose the war”; then you get a vague idea of this.

But having a vision is good, so what is this about “strategic competency”? Isn’t is strange to think that you have to be competent to know where you want to go?

Strategic competency is arguably the cornerstone of leadership. Without this, there is no leader. Even the situational leaders have some kind of end-goal in mind. That is precisely why a leader needs stategic competence. Anyone can have a goal. However, a good leader not only has a goal, but sticks to it. The whole world could be going one way, but the leader pushes on towards his own goals.

The ability to do that, the tenacity to hold on to the strategic goal; that is strategic competence. Too often, weak leader let go of their plans in the midst of opposing views. When the going gets tough, some people go - away. Too often, leaders get stymied by negative opinions, resistance to change and even simple lethargy. People like to stick to the “good old ways” and leaders find this one of the greatest challenge.

Strategic competence is the ability to put all the other leadership competencies together, weave them into a powerful, compelling force. The leader not only must be able to see the end-goal, he must be able to communicate it, work out a plan, gather the necessary resources and skills; and to last the distance.

Leaders are not necessary. This might come as a surprise, but it is true. A good manager need not be a good leader - in some circumstances.

You would see this most often in large, bureaucratic organisations. Management is about efficiency and effectiveness. Leaderhip is about inspiration and vision. Leaders deal with people. Managers deal with processes.

Which is why, to be a good leader, you need to have a good level of people handling skills. There are some dominant leaders who simply bull-doze their way through the team. In a crisis situation, that might work. But it can only be sustained for a short while. Imagine yourself under the tyranny of your supervisor, day in and day out; would you stand for it?

To be a good leader, you need to understand your people. But to be a great leader, you need to not only understand them, but to know how to bring out the best in them. Before you can inspire and motivate, you need to understand. However, if you stop at merely understanding them, but not knowing how to bring them to the next level, then you are a hapless leader.

Arguably, people competence is a pre-requisite for good leaders. But there are leaders who are in leadership positions because of their extreme technical capabilities, or their financial savvy or any other reasons. Without people competency, those leaders will not last very long. Or rather, their teams will not last very long.

Just a note about management. Managers are authority figures. They must be obeyed. They are in their positions through seniority, loyalty to the company or a zillion other reasons good and bad. Leaders, on the other hand, are people whom the group chooses to follow. They may have no organisational authority, but they inspire the group with their vision and passion. Sometimes, when natural leaders emerge, managers feel threatened, especially if its their group that is involved.

A good manager knows how to use and control the natural leaders. The weak managers simply get nasty. Leaders beware.

Here is an interesting one - finance. I believe that most people will think that if you know how to add up the dollars and you have a clever accountant doing your books, you are fine.

Small businesses thrive with good leaders. Big businesses thrive with good managers and a few good leaders. A manager has the luxury of being competent only within a narrow field. But to be a leader, you will need to have an awareness broader than the step immediately ahead of you.

Financial competency is important for several reasons:

You cannot have a good plan without understanding all the constraints, and finance is usually a big part of the picture
Finance is one of the pillars of your business and you cannot be blindly trusting that your “clever accountant” is taking care of you because he will not understand the other parts of your business
You are usually the one to take all the major money decisions, this cannot be done without knowledge and understanding of finance

I realise that “finance” might mean different things to different people. So, let me clarify a little. Finance is not about knowing whether your company makes money or not. It is not about knowing the price of your goods and their cost. It is not about doing the taxes. Finance is all these things and more. It is a management discipline that requires a lot of knowledge and skills.

You do not need an accounting degree to understand finance. But you do need to have a good grasp of the concepts and you need to know the policies of your bank, tax and corporate law and so on. The professional accountant and your tax lawyers are technically competent in their respective areas. But you need to have the ability to put it all together. Cashflow management comes to mind as one of the areas where small busineses typically fail.

If you are lacking, it might be good to consider investing in some education. “Finance for Non-Financial Managers” come to mind as an excellent course to take. But to think that your marketing brilliance or your great salemanship will carry you through without the “bother” of these “little things” - think again.