By Brett Banker
In the fast-paced world of startups, where agility, innovation and market disruption reign supreme, branding often takes a back seat. Many founders, especially those backed by venture capital, are rightly focused on product development, customer acquisition and achieving product-market fit.
However, as their companies grow and evolve, they often realize that a strong product alone isn’t enough to stand out in a saturated market. This is where building a strong brand foundation comes into play.
Branding is much more than a logo or a tagline — it’s the story you tell and the perception you create. It communicates your company’s values and mission in a way that resonates authentically with customers, investors and employees. It’s what you stand for in the minds of your audience and sets you apart from competitors.
It’s not just a marketing tool, either — it’s your company’s identity. Yet, many startups struggle to invest in branding early on, not because they don’t see its value, but because they lack the time, budget or expertise to do it right.
Why brand fit matters
While product-market fit determines whether a company has built something people want, brand fit establishes emotional resonance and differentiation in the marketplace. This is critical, knowing that McKinsey & Co. found that brands with strong emotional connections with their customers achieve 30% higher customer acquisition rates and 60% higher customer retention rates.
Research has also found customers who have an emotional relationship with a brand have 3x higher lifetime value and will likely recommend the company at a rate of 71% (vs the average 45%).
Brand fit should be embedded early in a startup’s strategy, guiding a multiple of business decisions — everything from product development to talent acquisition. And for good reason. A 2020 study by the London School of Economics found that companies with robust brand strategies outperformed the market by 20% over a five-year period.
Additionally, strong branding fosters trust and recognition, leading to customer loyalty, top-tier talent attraction, and even price premiums. In fact, Bain & Co. found that brands with strong brand equity can charge up to 20% more than competitors.
On the other hand, startups that neglect branding risk becoming commodities, blending into an already crowded market despite having innovative products.
The founder’s dilemma
Most founders understand the advantages of a strong brand, but the realities of running a startup make branding feel like a luxury rather than a necessity.
Time is scarce as they juggle multiple priorities, budget constraints push branding down the list of expenditures, and branding itself requires strategic thinking, creativity and patience — resources in short supply for fast-moving startups.
As a result, many founders resort to DIY branding or fragmented marketing efforts, only to realize later that their brand lacks consistency and fails to make a lasting impression, thereby weakening their odds of being successful in the long run.
Rethinking how startups approach branding
It’s no secret that startups move fast. Their branding efforts need to match that speed. However, hiring an internal marketing team or working with a traditional agency can take months and a sometimes reluctant opening of the wallet.
Even when the right team is in place, bureaucratic hurdles often slow down execution with more time spent in meetings than actually developing impactful branding.
While traditional agencies might work for established companies, startups need a different approach — one that prioritizes speed, expertise and flexibility. This is where branding sprints come in: short, intensive engagements with senior creative talent who can rapidly define a startup’s positioning, tone, voice and visual identity.
Bringing in external experts for focused branding sprints offers startups the best of both worlds — high-impact branding without the long-term commitment or hefty price tag.
Senior-level strategists and creatives can distill complex ideas into compelling brand narratives in days or weeks rather than months. This concentrated effort eliminates the inefficiencies of bloated teams and excessive meetings, allowing for decisive action and strong creative execution.
For startups looking to scale, branding is not an afterthought — it’s a crucial investment in long-term success.
Founders may not have the time, money or patience to build a brand from scratch, but this targeted approach can provide the strategic foundation needed to stand out — in a fraction of the time.
Brett Banker is co-founder of branding and marketing agency X&O and the former managing partner and head of account management of a 2x Agency of the Year winner. Banker is also a brand and business strategist, DTC entrepreneur, an Emmy winner, an aspiring chef and a half-decent golfer.
Stay up to date with recent funding rounds, acquisitions, and more with the
Crunchbase Daily.
