It is true. You can have a successful business without a logo. I run into businesses on occasion that basically have no branding and no logo. They have there name in some standard font on a sign but they really don’t have a logo or a brand. They have been in business for longer than I have been alive and are making good money doing whatever they do. So here I come ,mister logo designer, trying to sale them a logo or a brand or anything resembling a marketing effort. Their response usually goes like this. Well buddy our owner Jim started this business 50+ years ago and we rely on word of mouth and good customer service. “Two-thirds of new employer establishments survive at least two years, 44 percent survive at least four years, and 31 percent survive at least seven years, according to a recent study.” from sba.gov. If this is true than this business is unique to start with. To be in business for so long means they are doing a lot of things right. Generally after closer evaluation a few things are found to be true.
1. The business Owner is the back bone of the business and brings in the majority of revenue through personal contacts and long standing relationships.
Problem: If the owner dies. The relationships may also. Or if the person the owner has the relationship with moves to another company. The business will likely suffer. Because there is no brand in place the value dies with the relationship. If the value is in the brand then the new owner will likely continue the service that the brand represents. One other potential problem with this scenario is that if the business should decide to sale while things are good the owner will likely need to stay on to see the business through the transition. With so much of the value in the person and not in the brand the business will be valued less to potential buyers. Example if you were buying Coke. Would you want to own the drink or the name? If you could Only pick one you would probably pick the name because it is recognized world wide.
2.The company was able to carve out a niche early on and have not seen significant competition.
Problem: When competition comes, and it will, You don’t want to start a brand or marketing campaign to tell your clients about the value you bring. You want to have that in place before. Be assured that the competition will have all there ducks in a row. They will tell your customers all the things you should have been telling them coupled with a great price. It may not take much to persuade them to leave.
3.The Company has large clients that generate consistent business.
Problem: If one of those clients leaves you will have wished a strong brand had been in place so that when your new sales guy goes out people will have heard of and recognize the value in your brand. You will not need to take the time convincing them that you know what your doing you will just have to make the sale based on offering what they need at the right price.
So if you are a business that has enjoyed success, take the necessary steps to ensure your companies value and develop a professional image with a logo that customers can associate your quality with.