Starting a business is easy – you can open the company in one day. But if you have a bad idea, nobody is interested in your offer, and your business won’t be profitable. So, brand strategy is one of the few elements that influence your industry success and requires, in most cases, only your time. Logo, your website style, company name, and advertising forms are equally essential and… costly! To learn how much does it cost to start a brand – learn my article and check the details!
Branding for small business – which determines your dream’s brand development cost?
The cost of branding development depends on your approach. You can do it alone and create a brand strategy, logo, website, company name, and ads for free, but it’s very time-consuming. Your company’s design and strategy won’t be stunning if you’re not a specialist. Most things will likely look bad.
Serious thinking about running a business means developing an initial brand strategy and outsourcing the rest to an external branding specialist.
Here’s how it may cost your startup from scratch to a professional leading brand:
1. Brand strategy
Brand strategy is the first element you’ll think about while creating your company.
Don’t pay for it at the beginning. Consider your branding plans and note them. Create a buyer persona and excellent storytelling solutions to stand out your company in the industry.
The next step is to book consulting with one of the best branding agencies or a renowned branding freelance specialist.
The approximate brand strategy generates costs from $2,000 to $7,000 if you consider starting a micro- or small company with the agency’s or freelancer’s help.
2. Logo
A straightforward way to find out logo creators is to use Fiverr. It’s not worth saving money because the logo design will define your company for the next few years.
On the logo, you should spend from $400 to $1,500.
Bet on minimalists and aesthetic visual identity that clearly conveys your company’s business profile.
Photo 1. Logo design Fiverr offers. Source: www.fiverr.com
3. Company name
Naming is one of the most expensive branding services, but having a well-thinking brand name will help you gain the customers’ trust and become a market leader much faster than if you didn’t get your company name right.
For this purpose, you should hire a professional copywriter or content marketer with over five years of experience. On UpWork, you can add personalized offers and talk only with relevant copywriters.
Photo 2. Brand name writing job offer. Source: www.upwork.com
Regarding actual industry standards, I recommend paying $700 to $2,500 for naming.
In most cases, prices include a few company name propositions and free corrections if needed.
4. Your website
If you’re starting your own business, a professional website is crucial.
Creating a website on WordPress Elementor may be an excellent idea, but only if you have minimum basic knowledge about web development. Otherwise, you’ll create a slow and non-responsive website. As a result, potential customers will be irritated and choose competitors’ offers.
Website costs mainly depend on the size of your offer and the functionality you require.
Micro- or small businesses with up to 50 products or 20 services should pay from $2,000 to $4,000 for a comprehensive and professional website.
5. Advertising
The form of advertising depends on your industry.
I recommend using SEO (Search Engine Optimization) to gain more customers from search engines like Google, Yahoo! or Bing. You can also mix SEO with Google Ads to maximize advertising results.
SEO costs start from $1,000 monthly to local marketing. Global SEO costs refer to $5,000 when you’re a small- or medium website owner (with dozens of essential-to-sell products).
The Google Ads budget starts from $500 to $1,500 monthly. With this money, companies can boost 10–15 products on the first page in SERPs (Search Engine Results Pages) and significantly increase sales.
Photo 3. Google Shopping results. Source: www.google.com
Online advertisement purposes require a minimum of $1,500. I would be inclined to spend $3,000 – 70% on SEO and 30% on Google Ads (a good scenario).
How much does it cost to start a brand? The final thoughts
Starting your own company requires you to:
- A lot of time to prepare the brand’s conception and a minimum of $2,000 to outsource to create a comprehensive and professional brand strategy;
- Minimum $400 to visual brand identity, i.e., your company’s logo;
- No less than $700 for your company’s name;
- From $2000 to $4000 for a professional WordPress or Joomla website.
In summary, minimum one-time branding costs are $5,100.
To get more website traffic and sales traffic, you should invest at least $1,500 monthly in SEO & SEM – one of the most effective online advertising forms.
How much does it cost to start a brand? – FAQ
What are the primary costs associated with starting a brand?
When you consider launching a brand, several core expenses come into play. Initial costs often include market research to understand your target audience, brand design (like logo and packaging), and initial inventory or production costs. Additionally, promotional activities such as advertising and public relations campaigns will demand a portion of your budget.
How much should I budget for branding design?
Branding design encompasses your logo, website, business cards, and other visual elements representing your brand. Depending on the complexity and the professionals you hire, this can range from a few hundred to several thousand dollars. You may need to allocate a larger budget for a more refined and unique design, especially if hiring a top-tier agency.
Are there any legal costs I should be aware of?
Yes, protecting your brand identity is essential. Depending on your product or service, you’ll need to budget for trademark registration, potential patent applications, or other legal protections. Legal fees range widely, but initial trademark filing in the U.S., for instance, costs between $225 to $400 per class of goods or services, not including attorney fees.
How much will marketing and promotion cost?
Promoting your brand can vary significantly in cost, depending on your chosen methods. Digital advertising, events, influencers, and traditional media have different price tags. Depending on scale and strategy, a startup might spend anywhere from $1,000 to $10,000 (or more) on initial marketing efforts.
Should I anticipate ongoing costs after the launch?
Absolutely. After launching, you’ll need a budget for continuous marketing, inventory replenishment, website maintenance, and possibly staff salaries. Regularly assessing and adapting to market needs also means ongoing expenses in product development, customer service, and brand updates.
Can I start a brand on a limited budget?
Yes, many entrepreneurs begin with limited funds. Leveraging cost-effective digital platforms, utilizing freelance or gig workers, and starting on a smaller scale can make this possible. While initial investment can dictate the pace and scope of your launch, passion, creativity, and a clear vision often prove equally valuable.
Are there hidden costs I should be wary of?
Starting a brand can come with unforeseen expenses. These might include unexpected production setbacks, market shifts requiring strategy adjustments, or additional promotional efforts if initial campaigns don’t generate anticipated results. Setting aside a contingency fund, typically 10-20% of your budget, is wise to cover unexpected costs.
