Brand Reputation: The Breaking Point

Most entrepreneurs believe that starting a business will make them rich and famous in a blink of an eye. Sadly, that is not how businesses work. Although, running a startup or a small business can indeed make you rich, it demands dedication, persistence and patience, not to mention hard work and a lot of effort.

Needles to say, many business owners have a short-term venture with considerable profits in mind. But what about those entrepreneurs who want to make a name for themselves and create a legacy that will be remembered for years to come? These are the kind of businesses successful investors should be looking for. The ones that will not only run a profitable business, but also rise in the ranks with brand awareness and brand value while gaining a competitive advantage over those who are not just looking to earn a quick buck.

Reputation Matters

The market today is overcrowded and more competitive than ever. Chances are that a business idea has already been used many times over by various other businesses or is still in use which makes those businesses competitors. This little fact can discourage many entrepreneurs from even trying to compete in the flooded market, forcing them to come up with something else to base their business on.

However, there are those who are daring enough and determined to see their idea through, and beat the competition that stands in their way. The best way to do this is to build a solid reputation from scratch. Building reputation means doing the right thing for the consumers, customers and the target audience. This can mean that sacrifices of potential and substantial short-term profits must be made. Indeed, sometimes sacrificing money for the sake of good reputation may sound foolish, but good reputation does not come without benefits. Believe it or not, a good reputation has a greater long-term value than any short-term profit you may accrue.

Higher market value

Businesses that aim for reputation have a good chance at increasing their brand value and awareness but while taking some financial hits below the belt along the way. Furthermore, investors mostly like to see statistics rather than hopes and dreams which can make the road to success even more difficult for some entrepreneurs. However, some investors can see the potential of a long-term brand value and the benefits a good reputation can bring, and be willing to endorse such business and assist them in their endeavour.

Brand value means higher market value. The more famous and better the reputation of a brand, the more interest and demand there will be on the market. For shareholders, this means that stocks will have steady growth while long-term investments will generate higher profits with a positive impact on revenue. For the business owner, higher brand value means business success and sustainability as well as opportunities for business growth and survival.

Long-term revenue

In the beginning, a business owner will have to make sure that the reputation they are trying to build isn’t negatively affected in any way. This means that they will have to battle with finances in order to make it happen. Truth be told, building reputation, brand value and brand awareness is quite expensive. Luckily, there are companies that can provide a bit of financial aid if needed.

will surely have a competitive advantage

In the long run, when a good reputation takes its course, businesses that strived for this goal will surely reach success. Increased brand value also increases demand for products or services. It ensures a high-level of customer loyalty and positive feedback from the target audience. A famous brand on good standing with the audience that values customer support, customer service, product quality, ethics and the overall customer satisfaction, will surely have a competitive advantage over businesses that would be more than happy to sacrifice those things for short-term profits.

For example, a business that cuts cost on customer support and product quality can increase profit temporarily, but when the news start to spread over social media, the only thing left will be to close shop. On the other hand, a business with a good reputation that puts customers first can enjoy a positive feedback over social media and reap the increased long-term revenue and return on investment.


Building reputation alongside brand value and brand awareness is a difficult and costly process. There are many obstacles along the way and many business owners tend to give up long-term success for short-term profits. However, for those who last until the very end, good reputation will bring profits and success that will last.


Comments are closed.