It’s commonly thought that all it takes to build a business that stands out is a memorable name or a striking logo. However, what truly gives a business a strong identity isn’t based on surface-level impressions. Instead, what gives it an actual personality is its mission and how that’s communicated to customers (both directly and indirectly).
What can new business owners do once they realize that fact? To put it simply, they can take some time to really think about their company – what it does, why it was established, how it is different, and who it is meant for. It should all start with a concrete business mission statement, which may get refined further as the company keeps developing. Even with a basic idea, entrepreneurs will know the direction to follow.
Identify the Purpose of Your Business
Consider why you built your business in the first place. When answering this question, try going beyond the basics – rather than just thinking of what you do or sell, consider the reasons for deciding on your specific business activity. Is there a particular problem that you wanted to solve? A community you tried to help or support? Or perhaps you wanted to bring something to your industry that no other provider delivers?
As an example, let’s take a landscaping company. The obvious purpose of such a business would be to help homeowners improve their curb appeal without having to handle the work themselves. However, its deeper purpose could be to contribute to creating greener and more welcoming neighborhoods. Businesses with such awareness of their goals will be more convincing not only to customers but also to new employees and potential partners or investors.
Define the Values Behind the Business
While the purpose explains why the business operates, values are all about how it operates. A company may highlight its innovative approach, sustainable solutions, craftsmanship or customer care.
Most importantly, the value list should be meaningful and genuinely reflect the business’s most notable traits, and how those contribute to the high quality of its services or products. The list doesn’t have to be long for the sake of it, as a collection of generic positive terms without any substance backing them up may be seen as insincere.
Values should also be reflected in the actual customer experience. If a business claims to prioritize personal service, for example, its communication and support should reinforce that promise.
Understand What Makes the Business Different
Another important aspect of a business that determines what it stands for is its distinctiveness from its competitors. The difference may be in entirely unique products or services, but it may also come from details about how those are provided.
A business might use its customer service, pricing model, local focus, or availability to distinguish itself. These differences form a value proposition, which states why customers should choose one company over another. Harvard Business School’s explanation of a unique value proposition highlights the importance of understanding which customers a business wants to serve, what needs it aims to meet, and how its offering differs from competing alternatives.
Keep the Message Simple
Entrepreneurs must remember that people aren’t looking to get impressed. Customers will opt for providers that can relate to their needs or problems instead of those trying to sell themselves through overcomplicated jargon or emphasizing unnecessary details in their service descriptions.
The most effective mission statements focus on the essentials. To get their point across, the businesses should aim to address any questions related to their offerings, purpose, values and target audience in a way that’s both simple and compelling. Information overload will result in confusion among customers, prompting them to look elsewhere.
A mission statement should not be treated as a slogan, either. It’s intended to provide a broader reference point for how the company operates. On the other hand, slogans are meant for advertising and branding purposes – this matters when drawing attention, but not nearly as much when looking to convert visitors into paying customers.
Let the Business Identity Evolve
The identity of a business often changes over time. As the company grows, the understanding of its mission, audience, and goals can develop along the way.
However, the reverse can also apply – the mission statement by itself may actually affect how the company decides to operate. This shows that small businesses don’t need to perfectly establish what they stand for right after launch. They can start with a basic foundation and expand on their initial idea as they gain experience.
In the end, a business identity should represent what the company aims to achieve. Once that’s settled, it can transfer those ideas not only to its marketing or branding efforts but also to its services, product delivery, and customer communication. As the company shows more confidence in its established purpose, customers’ confidence will likely increase as well, resulting in the business gaining trust and recognition.