The Difference Between Growing A Business And Growing A Brand
Coca-Cola is a brand. Sprite is a product of a Coca-Cola company, and to some extent, making it uniquely a business. A brand like Coca-Cola, which many people know and connect with globally, can have several different businesses under its arm. Another prominent example is Amazon. From the name itself, you are already seeing an online retail giant – or Jeff Bezos. What you don’t see are other distinct businesses under the Amazon arm. The company has invested heavily in technology, pharmaceuticals, cloud storage facilities, entertainment and movie productions, etc. Prime Video is a product of Amazon. This makes the latter a brand and the former a business.
Businesses and brands don’t always assume such a setup, but it is worth noting the difference for the purposes of understanding how building the two differs.
Growing a Business
We can start by defining the term a business. A business is an entity that is desired to make a profit. A business might have so many reasons for it to be set up, but the core reason is for it to make a profit. So if a business is growing, it means that the profits are also growing. The profit for the business is the difference between the sales that the business has made and the capital and expense that it has. So another way, you can have a look at if the business is growing is by viewing the sales. If the sales that the business is making is more than that it previously had, then we can have a bottom line that the business is growing. There are so many indicators that the business is growing we will look at some of them and their meaning in the subtopic below:
Indicators That the Business is Growing
These are basically the signs that the business is growing, these are mostly seen and tangible, and they include:
These are the people who come to transact with the business by buying products from the entity. They come and bring money to the business. This money is what will translate into profits later. Hence if the number of customers increases in a short span of time, then we say that the business is growing. This is a simple fact that cannot be disputed and can be thought of in this sense. A customer brings, for instance, a dollar a day. If the number increases to one hundred, it means in a day, the business will have to get a hundred dollars from the customers meaning there is an increase of ninety-nine dollars of which is a growth in business.
Credit is when one can access a product from a business or a supplier without paying at the time of the transaction, meaning the payment for the transaction is met at a later date. Giving credit to someone in normal circumstances is a hard task because there is a risk that the credit being given out might not come back if the person you are a credit to never returns or pays up. So you must scrutinize the person you are lending the credit to. In business, what happens is that there is a criterion that is followed to grant credit to another one of them is the credit score. This means that the ability of the business to pay back is checked to verify that the person pays up. Using this credit score, also a parameter used is the amount of current capital the business is having at the time. If one can be granted credit means that the business has enough current capital to pay up the credit. Now the sense comes in handy where if the creditworthiness of the businesses increases, it means that it has increased current capital and can access bigger credit; hence the business has grown. In business, it is very difficult to avoid credit and loans; it is an essential part of the day to day running of the business.
This is what the business is selling to the customer. It can be valued in monetary terms. This kind of different from the customers in a little tilted manner. This is how a business can have so many customers flowing into the business, but they may not be buying anything, or another angle can be that many customers can be flowing into the business but buying very little amounts as compared to one customer who comes and buys a huge transaction in the business if the sales for the company increases from a lower point before it shows that the business has grown.
Creditors are the people giving credit to the businesses many people want to associate with a business that shows signs to do well in the future since it is very profitable for them too. So the creditors will have to attract the business by giving them credit. If the number of people who are willing to give you credit increases, then it means that the business is growing.
Net worth for the business is the amount of money or the value of the business after all deductions. In other words, the income of the business after all expenses have been catered for. The net worth of the business is the pride of the business, so if your business has a larger net worth than before, then it means it is growing.
Cash-flow is the rate at which cash is exchanged in the business. It can be seen as follows. Money comes from a prospective buyer or customer after he or she has bought your product; this money will be collected with the rest, part of it will be used to pay up debts and workers some of them will be used to buy up stock. So this process is circular and continuing. Hence if the amount of that cash in this circular flow increases, it is a great indicator that the business is growing
Type Of Business
There are different types of business that include and not limited to a sole proprietorship and a limited company. A sole proprietor works alone and does all things alone. He or she is the sole provider of capital, and profits and losses befall him or her. Many sole proprietors have small businesses. On the other hand, we have a company where it has a board of directors who manage and run the business shares can be bought by the public and so on. Companies are majorly large businesses, so if a business crawls from a sole proprietorship to a company, then there is the growth seen in this kind of business. That one is as clear as that.
Volume Of Stock
Stock basically refers to the goods that are purchased by the business in order to resale them. There will be no business; ideally, if there is no stock, then there is no business. So it can be used to measure the prowess of the business. A very large number or volume of stock as compared to the previous status of the business, then it will mean that the business has grown; hence it is a measure of growth.
Growing A Brand
A growing brand simply means the name of the business has grown. Brand growing is majorly abstract in that the brand deals with the reputation of the businesses and how people are talking about it in the economy. A brand is very important in selling the portfolio of the company.
When a brand grows, it has the following indicators:
This is where the name of the business has grown to. It can be geographically. If the name of your company is known in very many different areas or known by people that are very far. For example, a company like Facebook or Amazon is known worldwide it means that their brand has grown very well
There is huge competition among business. One major area of making a brand growing is by using advertisement. In this sector, the businesses have to pay up some fee in order to come up with the advert; these might include the local authority or the government. Due to this reason, there are some sections that have been naturally secluded for big brands due to demand for it; for instance, in a television commercial, there are these prime hours that for one business to advertise, you must pay heavily to access it or certain billboards in towns. So if your business falls in this category at a later date, then your business brand will have grown
The target market for the business is also a key indicator to show that the business has grown or not. If the business had, for instance, a small following at the beginning of the year, then at the end of the year, the target market can associate with the name of the brand, then it means that it has grown on a higher level.
Comparison Between The Growing Brand And Growing Business
As we all know, a brand is viewed with a bigger eyeball compared to a business itself. It seems as if the brand is more important than the business, or in other words, it is like many people are more interested in the brand than the business
The goal of your business is likely in a normal manner to generate income, while the broader goal of creating and building a brand should be to grow at large
When you are growing a typical brand, you should not focus more on how many products we are going to sale or have sold in one day or how much income that leads to profit we are going to earn and earned through a certain number of products sold. But instead, you should focus more on the number of leads you generate; you should be more focused on engagement, referrals, reach and recognition by the people who hear the name of your business
Growing your own brand is more of a key to motivation. In other words, it is mainly more headed on motivating yourself and the staff of the business to work towards a certain goal. Brand growing does not give the business or you enough room for negative choices, in other words, wrong decisions, since when you run your own business, your choices and decisions cannot be questioned by anyone. This gives room for negative and bad preferences.
There emerges a difference between the two in the sense that your business has a different company that produces your products or offers the same services as you do. Your brand image or identity that your business projects, that is the way the consumers will perceive your business.
A brand also starts as a feeling or maybe an idea, and time it expands over with time to become more complex than what the products entail.
A brand, on the other hand, is half business and half-human in that feelings of humanity are more incorporated in this branding than the business itself or as a whole.
Your humanity part helps you to get real connections with other customers and consumers, the other business part has only one goal, and that is to make income become more others see it as increasing the profit; the bottom line is making more money.
When you combine humanity and your passion, the desire to make money through a business, you have a brand.
This is an important difference since it helps you to understand that when you have a brand, you also have a business that is opposite to a business.
The two phrases that are growing a brand and business growth might seem so similar. This might not be the case because one might get two very contrasting results from the two. For instance, we expect a brand with a big name to have good business growth, but we can have one growing and the other failing. The above discussion presents a glaring view of this assertion and more.