The most frequently asked question in New Kind is “How much should you invest in branding a startup, and at what stage is it better to invest?”. There are many branding agencies for startups and we are one of them.
We design branding for companies that are at different stages of the startup lifecycle, so we have a clear understanding of when this or that type of investment will be best appropriate.
A brand with a good position, beautiful visualization, and an intriguing story can lead a startup to a leading position in the market. The main thing is to correctly calculate the time and amount of investments. Spending large sums early can deplete the financial resources needed for growth. Small but late investments can lead to the fact that the startup remains unfulfilled.
The corporate identity of a typical startup consists of:
· The name of the enterprise or product;
· Visual identification systems (for example, label, typography, color, etc.);
· The history of the firm, its positioning and messaging;
· Additional brand materials (business cards, signs, brochures, social networks, etc.).
Individual businesses may need to outsource the branding to help develop these components. Others can save finances and do business with their own company. You can also join forces with a third party.
When our specialists conduct a dialogue with clients, they help them weigh the pros and cons of external investments by asking two main questions.
Startups come in all shapes and sizes. Some of them are funded by personal savings or not funded at all, developing on the side, while working all day (pre-financing startup). The rest is funded by wealthy family members, friends, incubators, crowdfunding organizations, or early business angels (seed finance startups). You can read more about this here: https://www.halo-lab.com/services/front-end-development-services.
Stick to a great general rule of thumb – spend no more than 5-15% of your total startup budget on branding.
If you plan to invest $ 30,000 from your own nest egg into a startup, set aside no more than $ 1.5–4.5 thousand of them for a branded project. If your investment reaches $ 100,000, plan on branding between $ 5,000 and $ 15,000 and no more. When the profit appears, you can invest more.
If a brand is everything for your startup (for example, you are releasing exclusive apparel or other product), you can cross the 15% line of the budget for a branded project. There are several firms that have invested up to 50% of their start-up capital during the branding phase. But it should be a well-considered step and should be applied in the most extreme case. If you do decide to invest more than 15%, do it carefully and do not forget about other important investments in development, infrastructure, marketing, etc.
For most startups, the most valuable investment in a branding project is getting to know the branding process itself. If you only have $ 100 or less in stock, buy educational books. Watch the movie Positioning: Battle for the Mind (Al Rice and Jack Trout). Read on for Designing Brand Identity by Alina Wheeler. And, if you still have a few dollars left in your pocket, buy the Branding-Free Brand Branding Book for Startups on a Budget.