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5 common mistakes startups make when building their brand identity (and how to fix them)

Establishing a strong and cohesive brand identity is one of the most critical aspects of building a successful startup. Brand identity not only shapes how your customers perceive you but also builds trust, loyalty, and recognition in an increasingly crowded market.

According to Lucidpress, consistent brand presentation across all platforms increases revenue by up to 23 per cent. However, many startups fail to get it right from the beginning, leading to confusion and missed opportunities.

This post explores five common mistakes startups make when defining their brand identity and how to avoid them, along with practical steps and real-world examples from B2B companies that have succeeded by doing it right.

Mistake one: Not defining a clear brand purpose

The mistake:

One of the most frequent branding errors startups make is launching without a clearly defined brand purpose. They rush into the market with a product or service but fail to articulate why they exist beyond profits. Without a well-defined purpose, a brand lacks direction and differentiation in the market.

How to fix it:

Start by asking foundational questions:

  • Why does your company exist?
  • What problem are you solving, and how do you want to impact the world?
  • How do you want your audience to perceive your brand?

Once you have answers, use them to build a clear brand purpose that will guide every decision.

Example:

Look at Slack, a B2B communication platform that identified its purpose as making work-life simpler, more pleasant, and more productive. This guiding purpose set Slack apart from competitors and shaped how they built their product, messaging, and user experience.

Mistake two: Choosing a complicated or inconsistent brand name

The mistake:

A confusing or overly complex brand name can confuse potential customers and hinder brand recall. Startups often choose names that are difficult to pronounce, spell, or don’t align with their mission, which leads to poor recognition and inconsistent messaging.

How to fix it:

When brainstorming a brand name:

  • Keep it simple, memorable, and easy to spell.
  • Ensure the name reflects your brand’s essence or values.
  • Verify that the name can be legally protected and that domain availability exists.

Example:

B2B SaaS company HubSpot chose a simple, yet effective brand name. It’s easy to remember, descriptive of their service (hub of marketing and sales tools), and scalable as the company grew. Contrast this with startups that struggle to rebrand later when they realise their name doesn’t resonate with their audience.

Also Read: Beyond the pitch deck: How founders can leverage personal branding for startup success

Mistake three: Overlooking the importance of brand guidelines

The mistake:

Startups often fail to create a comprehensive set of brand guidelines, resulting in inconsistent visuals, language, and tone across different platforms. This inconsistency dilutes the brand’s identity and makes it difficult to build a cohesive brand experience.

How to fix it:

Establish clear brand guidelines from the start. These should include:

  • Logo usage rules (size, placement, acceptable variations)
  • Color palette and typography standards
  • Tone of voice and brand messaging
  • Image and graphic style

Example:

Mailchimp, a B2B email marketing company, maintains a highly consistent brand identity across its website, app, and marketing materials. Their brand guidelines emphasize a playful yet professional tone, with clear rules on visual elements. This consistency has played a crucial role in Mailchimp’s brand success.

Mistake four: Focusing only on visuals and ignoring brand voice

The mistake:

Many startups focus heavily on the visual aspects of their brand (logo, colours, etc.) and overlook the importance of a consistent brand voice. Your brand’s voice is how it “speaks” to the audience, and inconsistent tone or language can confuse customers and weaken your brand message.

How to fix it:

Define your brand voice early on. Consider:

  • What personality traits should your brand convey? (e.g., formal, friendly, professional, playful)
  • What tone should your communications take in various contexts (e.g., emails, social media, customer support)?
  • Create a style guide that ensures consistency across all written and verbal communications.

Example:

B2B marketing automation company Drift has a distinct, approachable brand voice that is informal yet professional. Their voice is consistent across blog posts, emails, and even customer support, reinforcing their brand as friendly, accessible, and focused on customer success.

Mistake five: Neglecting to evolve the brand identity over time

The mistake:

Some startups make the mistake of sticking to their original brand identity without revisiting or refining it as the company grows. This static approach can cause your brand to feel outdated, misaligned with evolving business goals, or disconnected from customer expectations.

Also Read: Why startups should prioritise brand reputation from day one

How to fix it:

Your brand identity should evolve as your business and market conditions change. Regularly assess:

  • Is your logo still relevant and resonating with your audience?
  • Do your mission and vision statements reflect where your company is headed?
  • Are there new products or services that require you to refresh your brand identity?

Example:

B2B giant IBM has continuously evolved its brand identity over the years. From a traditional hardware company, it transformed into a modern technology and AI leader, updating its logo, mission, and messaging to align with new market realities.

Conclusion: Build a brand identity that stands the test of time

Developing a strong brand identity is not just about creating a logo or choosing colours. It’s about building a comprehensive, cohesive representation of your company’s purpose, values, and voice that resonates with your audience and evolves as your business grows. By avoiding these common mistakes and following the right steps, your startup can craft a brand identity that sets you up for long-term success.

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Image credit: Canva Pro

This article was first published on September 10, 2024

The post 5 common mistakes startups make when building their brand identity (and how to fix them) appeared first on e27.

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