Personal Branding vs. Company Branding

Creating a personal brand is easier to do than building a company’s brand. There are many tools today, like social media and website packages, that make it simple.¹ Personal branding is getting more important. Vandana Nanda from Winbrand Academy says choosing the right branding can greatly affect your business’s success.

Personal branding means creating a clear public image about you. It shows who you are, what you stand for, and what you can do.¹ But, company branding aims to make the business stand out, without focusing on individual people.¹ The best choice depends on what you plan for the future, what you sell, if you want to be a brand’s public figure, and what your customers like.

Key Takeaways:

• Creating a personal brand is easier and offers you more freedom, but it needs regular work.
• Building a business brand is tough but could make it easier to sell the business if you want to later.
• People often trust individuals more than companies, so personal branding is very effective.
• For fields like art, coaching, and speaking, personal brands usually work better. On the other hand, business brands can grow more easily.
• For some businesses, finding a good mix of personal and company branding can be the best strategy.

Understanding Personal Branding

Personal branding is about creating a strong public image for yourself. This image is built on your unique qualities like skills and personality.² The goal is to enhance how others see you and become a key figure in your field.²

Definition of Personal Branding

At its heart, personal branding is making yourself stand out from others. You do this by sharing your own story, skills, and what makes you real.² This helps you connect with people who trust you more. It could also mean better prices for your work and chances to get your message out there.²

Advantages of Personal Branding

The big plus of personal branding is sharing your story with others. This gets people to care more about you.² It helps form a deep bond and makes you someone others can count on. Also, having a personal brand gives you more room to move; you can switch up what you offer or start new adventures easier.³

Challenges of Personal Branding

Yet, personal branding does have its tough spots. Keeping your personal brand strong needs a lot of work. You have to keep putting out content that’s just right to keep people interested.² Plus, what you do reflects on your business, so it’s important to be seen in a good light.³ Vandana Nanda says personal branding really shines in jobs where it’s all about you, like art, coaching, or being a speaker.³

Understanding Company Branding

Company branding is about making your business distinct. It gives you a unique name and reputation.² In today’s digital world, having a strong brand is critical. It sets you apart from others.² More than one person can help build and grow a business brand, making it reach more people.

Advantages of Company Branding

Creating a strong company brand lets your business grow larger. It isn’t just about the owner’s personal name.³ This means it’s easier to sell in the future.³ Also, a business brand can last through time, handling changes well.³ It can grow because it’s not just about one person.

Challenges of Company Branding

Starting a brand new company brand can be hard. It might not feel as personal as someone’s own brand.² A personal brand can really make one person stand out. It helps the audience trust them more.² This trust can lead to good things like more customers and value for your products. It also creates chances for good press.

Expert Jon Michail says having a well-known figure as your company’s “face” can make a difference.⁴ This shows the power of using personal appeal in marketing. Think about how sports stars make brands of fast food and drinks popular. They help sell shoes and sportswear. The same idea works for all kinds of products and services. People trust in these brands more because they love the stars that support them.

Ease of Business Idea

Starting a new business? Personal branding might give you more room to try things out.⁵ With your own brand, you can find your audience and see which business ideas work. This gets you feedback and helps you make your offer better. On the flip side, having a company brand means you need a solid business idea from the get-go.⁵ Personal brands also let you team up with others to make money while saving up to start your own thing. This makes personal branding perfect for those really into a field but aren’t sure what business to start.

Being able to change your business idea easily is a big plus of personal brand development over corporate branding strategies.⁵ It lets entrepreneurs check out different paths and get important feedback before diving deep. On the other hand, big brands find it harder to switch, as they need to protect their image and what they stand for.⁵ The Ease of Business Idea is a major point in picking the best way to brand your new business.

Thinking of starting a business? Going with personal branding offers a lot of freedom.⁵ It lets you tweak and refine your idea, gather feedback, and save up before taking the plunge. However, if you go with corporate branding strategies, you need to know what you’re about right away. So, there’s less room for experimenting or changing course.⁵

Ease and Cost of Starting Up

Starting your own brand can be much easier and cheaper than a company brand.⁶ If you’re working on your own, you are the face of your brand. This means you don’t have to pay others to build your audience or make content. It’s a big help for new entrepreneurs without a lot of money to spend on a big brand.⁶ You can use free or cheap tools online to reach people and grow your brand. On the flip side, making a company brand usually needs a lot of money upfront for things like logos and marketing.

⁶ The U.S. Small Business Administration says most small businesses need $3,000 to start. Home-based franchises range from $2,000 to $5,000.⁶ According to Drew Gerber, CEO of Wasabi Publicity, you should have enough money to cover costs for six months when you start.⁶ For a startup with five workers, first-year costs were estimated at almost $185,000, including rent and salaries.

⁶ William Brigham suggests new owners should plan their money for the first few months. This means figuring out all costs and possible earnings.⁶ Lots of new companies pay for everything themselves. They might use savings, loans, or help from investors to get started.

⁷ The IRS lets businesses write off up to $5,000 in costs in their first year. If you start in 2024, and spend more than $50,000, you lose some of that write-off.⁷ You can spread the extra costs you weren’t able to write off over 15 years.⁷ Which tax form you use to claim startup costs depends on your business. Make sure you claim these expenses in the right way or else you won’t get the benefits.

⁷ If your startup costs are more than $5,000, you can spread them out over a period of 15 years.⁷ Even though these costs don’t go on the balance sheet right away, you can slowly write them off.⁷ It’s smart to talk to a tax expert before you use these tax breaks. They can help you follow the rules and get the most help possible.

⁸ For costs over $50,000, you lose a dollar of your initial write-off for every extra dollar spent.⁸ You’ll write off these extra costs over 15 years.⁸ Corporation setup costs can partially be written off right away, but the rest will stretch over 15 years. These include legal and accounting fees.

⁶ The cost to start a business changes based on what kind it is and its needs. For something online, it might only be $100. For a physical store, it could be hundreds of thousands.

Pivot Potential

Personal brands can shift their focus easily. They are built around one person, making it simpler to change what they offer. Imagine a copywriter switching to teaching gardening. It’s harder for a regular company to do such a shift.¹ A personal brand’s built-in audience and storytelling skills help explain such big changes. In comparison, a company brand would have to build a whole new image.¹ This is why personal branding is often better for those who might change their business approach.

Pivoting with a personal brand is a big plus. It lets entrepreneurs react to new trends or customer needs. When sales go down, it might be time to rethink the business.⁹ Good planning is key before making big changes. Hurrying can lead to problems. Planning means looking at the data and understanding the risks.

⁹ The text suggests looking at site traffic, sales, and what customers think. This helps find new business opportunities that match the company’s strengths. Using data wisely is crucial for smart business decisions.⁹ It also advises coming up with a few ideas and picking the best ones based on what the market needs. This way of choosing is based on facts and what the business can do well.

Personal Branding vs. Company Branding

Personal and company branding offer unique benefits. Choosing the best one depends on several factors.¹ Personal branding lets you make strong connections with your audience. You become the face of your brand, and maintaining your public image is essential.¹ On the other hand, company branding is more scalable. It can be easier to grow but might find it hard to match the trust a personal brand can build.¹ Your choice will mainly rely on your long-term ambitions, business type, and how comfortable you are in the spotlight.⁴ For some, balancing both personal and company branding proves to be a winning strategy.

Durability and Scaleability

When we think about how long a brand can last and how much it can grow, personal and company branding work differently.¹⁰ Knowing these differences helps entrepreneurs who want to make a brand that lasts and gets bigger.

Durability of Personal Branding

Company brands often outlast personal brands. If a company’s founder moves on, the brand can keep going because it’s about the company, not just one person.¹⁰ But with personal brands, everything leans on that one person. If something happens to them, the brand can fall apart.¹⁰

Scaleability of Company Branding

Company brands have more room to grow big. This is because they can hire more people and serve larger areas.¹⁰ Personal brands might find it tough to grow big because they’re tied to just one person.¹⁰

When you’re aiming for long-lasting business success, the brand’s ability to last and grow is key. Finding the right mix of personal and company brand strengths makes your business stronger. This approach can benefit the Brand Equity of the company.

Power of the Brand

Personal brands have a special power. They can really capture people’s attention. By sharing their own stories and experiences, personal brands make strong, deep connections with followers.⁴ For instance, Jenna Kutcher connects with people on a personal level. She talks about issues like feeling good about your body and faith. This shows how appealing personal brands can be.¹¹ Meanwhile, big company brands might have a harder time making these personal connections.¹¹

Captivating and Convincing Power of Personal Brands

Look at Colonel Sanders, the face of KFC. Even after he died in 1980, he’s still a strong part of KFC’s story and branding.⁴ Personal branding puts the spotlight on people, not products. This makes leaders walking advertisements for trustworthiness and credibility.⁴ Branding works best when a real person stands for it. This person brings the company’s values to life.⁴

Leveraging Influencers for Business Brands

Some business brands use famous people to add a personal touch to their marketing.¹¹ But, this isn’t as strong as when the brand is built around an individual leader.¹¹

CEO Freedom and Flexibility

Choosing between personal and company branding affects a CEO’s freedom and flexibility. A personal brand expects the founder to always be the company’s main face and voice. This limits their ability to step back and pass certain duties to others.³ For instance, Vandana Nanda’s situation shows that personal brand CEOs might have to constantly stay in touch with their audience even during tough times. On the other hand, a company brand separates the CEO from daily operations. This means they can take a break or let the team handle things since the brand is linked to the whole business, not just one person.³ For entrepreneurs valuing CEO freedom and flexibility, or those planning on needing more personal time in the future, this is a key point to consider.

When it comes to personal brands, the founder must always represent the brand publicly. This leads to less freedom and flexibility for the CEO.¹ Yet, with a company brand, the CEO can stand back more since the brand isn’t focused solely on an individual.³ This setup helps entrepreneurs aiming for work-life balance or needing breaks from running the business now and then.

In sum, deciding between personal and company branding shapes a CEO’s freedom and flexibility. For those who value time off or expect to need more personal freedom later, a company brand might be the best route. This contrasts with personal brands, where founders usually must always represent the brand themselves.

Conclusion

Deciding between personal and company branding is a big choice for start-ups. Personal branding gives more freedom and lets you connect better with people. But, it needs a lot of your time and effort. Company branding is about building something lasting, growing bigger, and having more freedom as a CEO. However, it can be harder and costlier to set up.¹²

Choosing the right path means looking at your long-term goals, what your business is about, and what you feel comfortable with. Knowing the pros and cons of each helps make a choice that fits your business and goals.¹²

Whether you go for a personal brand or a company brand, the aim is to shape your brand into something special. This way, you build strong bonds with your audience and set your business up for success down the road. Navigating through the differences in personal and company branding helps you get the most out of your brand. And, it helps you meet your goals.¹²

Source Links

1. https://www.linkedin.com/pulse/personal-brand-vs-business-which-one-should-you-choose-nanda-
2. https://books.forbes.com/blog/personal-branding-vs-corporate-branding-why-you-need-both/
3. https://www.paigebrunton.com/blog/personal-brand-vs-business-brand
4. https://www.forbes.com/sites/forbescoachescouncil/2022/06/24/personal-branding-versus-business-branding-which-comes-first/
5. https://www.entrepreneur.com/starting-a-business/should-you-use-your-own-name-or-create-a-brand-name-for/358399
6. https://www.businessnewsdaily.com/5-small-business-start-up-costs-options.html
7. https://www.investopedia.com/articles/personal-finance/010616/writing-expenses-starting-your-own-business.asp
8. https://www.wolterskluwer.com/en/expert-insights/startup-costs-and-organizational-expenses-are-deducted-over-180-months
9. https://codeconspirators.com/when-and-why-to-pivot-and-rebrand/
10. https://www.pamelawilson.com/personal-brand-or-business-brand/
11. https://www.simplilearn.com/personal-branding-vs-business-branding-article
12. https://business.linkedin.com/marketing-solutions/blog/personal-brand/2018/personal-branding-vs-corporate-branding–how-to-strike-the-right