When people talk about branding, they tend to get an oversimplified idea about it. I know many people who think that the words “brand” and “business” are one and the same. But here’s the common truth:
You can have a brand without a business and a business without a brand.
A little confusing, isn’t it? Well, not to worry because this is exactly what I’m going to talk about today. Let’s explore the distinct difference between a business and a brand—and how you can integrate one into the other.
First things first, let’s define what a business is.
What Qualifies as a Business?
There are many types of establishments but not all of them are for profit. This is the very reason why we have non-profit organizations such as those meant for peer or “hobby” groups and charities. Although the setup of these establishments resembles that of a company, with members and governing authorities and all, they are missing one key factor in what makes a business a business: Profit.
That’s right. I think that the simplest way to define a business is to determine whether an individual or group is profiting off their operations or not. For example, something simple like selling your skills online on platforms like Fiverr or Craigslist and actually receiving payment for it can be considered a business.
In other words, there are 4 important aspects to this trade:
- Seller
- Product
- Buyer
- Profit
Using the very same example we have above, being a freelancer offering services on Craigslist makes you the “Seller.” Your “Product” is the services you provide be it Photoshop Editing, Graphic Design, Content, etc. The “Buyer” would be anyone who’s interested in procuring your services. And lastly, “Profit” is the amount you earn minus the expense you incurred—which in this case, can be pretty relative since your raw materials are basically skill, effort, and time (all of which are very hard to attribute value to).
With that being said, any entity (individual or group) qualifies as a business so long as these factors are observable. This is regardless of whether you operate on a small or large scale, doing open or close door transactions.
Being a brand is different.
What Is a Brand?
To cut things short, a brand is when a business goes beyond “just being” a business. It is the attribution of a product to an idea. This is where the tricky part comes in. After all, all brands are businesses but not all businesses can become brands.
Say, Nike for example. When you hear the word “Nike,” you think of shoes, sports, Michael Jordan, basketball, athletes, jumping (for some weird reason), and basically anything that beams of energy and athleticism. All these ideas and imagery immediately pop into your head as soon as you hear someone mention the name of the company. This is what you’d call branding.
In other words, branding happens when your product or service has seeped deep into the masses’ subconscious so that they start associating and correlating objects your brand represents as if the two are interchangeable.
When you see a bubbling hot tub, you refer to it as a Jacuzzi. But Jacuzzi is a brand that even produces toilets and mattresses. And yet, we refer to any and all brands of hot tubs as a Jacuzzi, even when it is (in fact) manufactured by another company!
The same thing goes with Chapstick, a brand of lip balm. We often refer to all kinds of lip balm, even from other manufacturers, as Chapstick. This means that the business has managed to dominate its product’s industry so much that it has replaced the generic term for the product.
If you want your business to go down in history, it’s a must for you to invest in branding strategies. Get business name ideas with companies like Brandlance, for instance. A good name for your upcoming brand is the best way to set the mood right, after all.
Sure, focusing on income-generating activities and product development is very important. However, these activities will not immortalize your brand. What will make your products stand out and make your business run for a long time is people’s confidence.
You have to go beyond just being business. You have to create your own brand.
