A Companies Brand is their Most Important Asset.
In today’s competitive marketplace what connects the consumer to your products, services, or company?
It is your brand.
What creates the Blue Sky book value for your company?
It’s your brand.
What is the difference between a highly valued company and a lower valued company?
It’s your brand.
We all learn in business school that the “Blue Sky” value of any company is that value above the book value of the assets of the company and what the company sells for, and this is always made up of what an investor perceives as the companies real value as it relates to the brands connection with the core consumer and the company…this is the Brand, and why your brand is an important asset of your business.
Highly valued companies show time and again that the Brand contributes significantly more to the overall valuation of your business, than most every other part, because an investor is buying into the future growth, brand loyalty associated with the company, and the brands opportunity to drive growth.
Only when companies realize that they must protect, develop, and build their brand so its attributes, culture, logo, image, and values are consistent throughout the organization do they realize that there is tremendous value to the company through their brand. Their brand is an asset , and it must be seen as the single most important asset they own as it creates the Blue Sky Valuation for their business.
Additionally, companies often forget that additional areas of growth, including licensing, are all driven from the brand value and brand connections developed by the company. A strong license that generates significant returns to the Licensor will always be associated with its Brand strength, and the ability of a Licensee to be successful is likewise driven on that same principal.
So when we say that the Brand is an important asset it is because it influences how a consumer perceives of a company, its products, its services, and their relationship with them and if you sully that relationship you hurt the brand.
That is why we say
“You must protect your brand’s core values and message and present them consistently everywhere that the brand connects with your consumer.”