Many start-ups crash when they pursue growth without a brand identity, fail to act on market research or rely only on design instead of investing in trust and value, explains Vinayak Burman.
Building a homegrown brand requires more than passion and creativity. It's also about strategy, consistency and perspective.
Many start-ups crash when they pursue growth without a brand identity, fail to act on market research or rely only on design instead of investing in trust and value.
Others misunderstand the importance of technology, efficient systems and a team that embodies the brand.
Thinking in a relevant manner about the strategies you are employing will ensure sustainable growth and an increased relationship with and loyalty to your brand over time from your customers.
1. Expanding too quickly without having systems in place
One of the most prevalent issues brands face is expanding too rapidly instead of setting up systems first to manage the expected scale.
Expanding too quickly, without the ability to support such growth efficiently, often leads to diminishing the quality of the product or service. It also reduces the customer's experience and leads to ineffectiveness, which can affect both profitability and the brand's reputation.
Brands also need to ensure they continue to align with their core offering when they expand geographically. They need to enhance what customers love about their product and/or service instead of diluting it.
This can be achieved by investing in technology and retaining experienced teams and processes so that, when you scale, it actually amplifies your brand instead of overwhelming it.
2. Ignoring brand identity while scaling up
One of the main errors a company can make when scaling its existing brand is to forget about brand identity.
When growing quickly and potentially facing challenges in production, sales, capacity and finances, it is easy to forget about your brand identity and how it helped you stand out.
While your logo and design are part of your identity, your brand also involves your story, your values and the experience you consistently provide your customers.
Brand identity also helps segment your company from the noise of the competition in your space and unites your staff in a common belief.
3. Not understanding your audience beyond early adopters
A crucial mistake homegrown brands make during a scale-up is assuming what their early adopters like will extend to the larger market.
Early adopters may simply be product discovery seekers or have loyalty or a personal connection with the product whereas the larger market may have different needs, values or price perceptions.
Not bridging this gap could lead to missed opportunities or stagnant growth.
This is why continuous market research about demographics, purchasing habits and attitudes towards evolving consumer trends can help small brands with segmentation, developing aesthetic changes and working towards evolving their values as they head towards a larger market.
4. Excessive reliance on discounts and influencers
Labels that rely on discounts and/or influencers may see excellent short-term results but such strategies rarely provide longer-term brand equity.
To further develop a label from the ground up, it's critical to develop a variety of approaches towards growth.
Implementing a content marketing strategy can leverage your content authority by providing blogs, videos or podcasts that link to the lifestyle of your audience.
Another approach that is equally valuable is community building.
By using a wider approach towards your brand's growth -- one that is not reliant on discounts or borrowed influence only -- you create an opportunity for sustainable growth.
5. Neglecting data and customer feedback
A common mistake many homegrown brands make is growing too quickly without focusing on data or customer feedback.
Customer insights are critical to intelligent growth because they provide insight into your customer's preferences, frustrations and changing expectations.
Without the use of customer data, brands risk launching unpopular products, missing opportunities and risking trust with customers.
The secret is creating a listening culture in your company. It includes social media monitoring, customer reviews, surveys and purchase analysis.
Ultimately, making decisions based on customer feedback will change pain points into opportunities and deliver sustainability for short- and long-term scalable growth.
Growing a homegrown brand does not take just imagination; it also needs clarity, systems and vision.
The approach, from a growth perspective, needs to focus on maintaining authenticity or the brand's original essence. Ultimately, balancing growth with authenticity leads to longevity and sustainability.
Vinayak Burman is a corporate lawyer, founder and managing partner, at Vertices Partners.
He has been an advisor to several start-ups including Sugar Cosmetics, Mcaffeine, Upgrad, Fritternity (acquired By CureFit).
He is also the founder and creator of The Lifeboat podcast.
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