Here's a word of caution to aspiring entrepreneurs, who're so caught up with issues of the moment like VC funding, that they neglect building a strong foundation for their brand.

Having started my own company in December 1998 and worked with several start-ups (many of them technology-based), I have made a few observations that others could benefit from.

Perhaps the biggest and most common mistake that many start-ups make is deferring their plans of brand building as they have more urgent matters (though not necessarily more important) on their plate. Start-ups are worried about revenues, the order book, cash-flow and salary payments, and that is perfectly understandable. I have been there, done that and shared the same mindset. Building a brand is generally sidelined or kept on hold for the time when the company that started small, gets larger. The common response to brand building runs along the lines of, "Let's reach a turnover of US$ 100," or "Let's get 500 people on board." "Others should talk about our achievements," or "It is crass to talk about ourselves." While there may be some merit in these statements, I think the most important point that start-ups need to remember is that while life could be sequential, in business many things must happen simultaneously if the budding enterprise is to succeed. I am sure the technology industry invented the term ‘parallel processing' and this really has to be the guiding philosophy for start-ups; particularly those with dreams and ambitions of making it big.

Why must you build a brand?
At the risk of sounding repetitive, let me once again say that brand building is extremely crucial for companies and perhaps more so for start-ups. If you've ever heard the following statement, ‘Other things being equal, people will buy from friends; other things being unequal, people will still buy from friends', I suggest you replace the word ‘friend' with ‘brand', because a brand ultimately has to feel like a friend. A brand is ‘someone' whom you can trust and depend on to take care of your requirements. And while there are enough ways and means to build brands, technology companies have discovered that public relations can, and will make, a major difference to their brand-building efforts. In fact, the smart use of public relations has made a major difference to companies like Infosys and MindTree, as they have well-defined and carefully executed public relations strategies that are an integral part of their brand building strategies. Infosys does hardly any advertising, but talks aggressively to the media, which is keen to write about it. So, for a fraction of the cost of advertising, Infosys gets a disproportionate media coverage. As the adage goes, "You become a brand not when you talk about yourself, but when others talk about you." A start-up may not have the visibility or the newsworthiness of an Infosys today, but can certainly have the ambition of an Infosys and learn from the leader on several fronts, especially on how to harness the power of public relations.
Branding is essentially about the long term and it is a process, not an event. So start-ups too must realise that they should not expect magical results overnight or get disheartened too easily in case the going is slow or difficult.
What does a brand mean?
Very often, companies do not realise the benefits of branding. The obvious reason companies spend so much time branding their products, services and often the companies themselves is that the consequent awareness and familiarity that this creates, leads to the brand claiming a price premium. Employees too are happy to see their company in the news and prospective employees, for their part, would prefer to work with better-known companies. Investors, too, are happy to stay invested in companies that are not only well run but are well written about. The unfortunate part is that start-ups are so preoccupied with the short term that they are unable to think long term. Branding is essentially about the long term and it is a process, not an event. So start-ups too must realise that they should not expect magical results overnight or get disheartened too easily in case the going is slow or difficult.

A word of caution
There are two aspects to branding - the rational and the emotional. The rational part is easy; it is something tangible that the brand owner brings to the table. In the case of Big Bazaar, it is the value that its consumers get by shopping there, in terms of better prices. In the case of Jet Airways, it is the superior, professional service that the brand consistently provides that customers seek out, and so on. But often, brand owners get carried away by the emotional aspects of the brand. These are the softer emotional aspects of the brand, including its look and feel. Companies spend a lot of time on their identity, the colours used, the tag line that describes the brand's philosophy, etc. They often spend crores of rupees on their advertising and wax lyrical about the brand. While I am not downplaying the importance of these softer aspects of the brand, I would still like to make a fairly important point. Successful brands are built on a strong product or service. No brand, however attractive and however well positioned, can sustain itself in the long run without first offering excellent quality. In today's competitive Indian market, it is imperative that the product or service is of good quality. Branding only makes the brand different and stand out from its competition.

So what's the bottom line?
Starting up a venture is not easy. And yet start-ups need to sustain themselves over a period of time. While they need to focus on running the business efficiently, they need to simultaneously worry about their brand and how to build it. Public relations is the strategic route that many currently successful companies have used to reach a recognition level that others wish to emulate.

So here is my suggestion to start-ups. Have you thought about building your brand? If not, do it today. And remember that public relations could well be the strategic key that opens the doors of success for your brand.

The author is the CEO of Brand-comm and the author of ‘One Land, One Billion Minds'. He can be reached at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it