In today’s climate of financial uncertainty, SMEs and early-stage startups face unprecedented challenges—but also unique opportunities. This article explores why brand is no longer just a marketing asset, but a core driver of business valuation, resilience, and growth. Drawing on the latest research, including findings that brand assets now contribute nearly 20% of enterprise value on average—and over 50% for leading consumer brands—this piece offers a practical roadmap for leaders who want to transform their brand into a measurable, boardroom-level asset. You’ll discover how aligning brand purpose, demand generation, employee value proposition, and investor relations can directly impact cash flow, pricing power, and long-term business performance. With actionable stories, financial metrics, and a holistic approach grounded in behavioral economics and investor psychology, this article positions BlueBirds Group as a strategic partner for founders, executives, and marketers ready to turn uncertainty into lasting value.
In today’s volatile economy, small and medium-sized enterprises (SMEs) and early-stage startups are facing unprecedented financial challenges. With shifting consumer behaviors, investor caution, and rising competition, the old playbook of cost-cutting and short-term fixes is no longer enough. The businesses that are not just surviving—but growing—are those that treat their brand as a strategic, financial asset at the heart of their organization.
At BlueBirds Group, we believe brand is not just about logos or advertising. It’s about building a resilient, valuable ecosystem that drives business valuation, attracts investment, and creates long-term growth. Here’s how—and why—your brand should be your most important asset in turbulent times.
Brand valuation is the process of quantifying your brand’s contribution to your company’s overall worth. This isn’t just a marketing exercise—it’s a strategic tool that bridges marketing, finance, and business planning, enabling leaders to set realistic growth targets, identify new market opportunities, and align every initiative with the company’s long-term objectives.
In March 2024, Unilever announced plans to separate its global ice cream division—which includes leading brands such as Magnum, Ben & Jerry’s, Wall’s, and Cornetto—as part of its Growth Action Plan. The division generated €7.9 billion in turnover in 2023, representing about $8–8.3 billion in annual sales and holding a 20% share of the global ice cream market. However, the ice cream business has underperformed compared to Unilever’s other categories, with just 2.3% underlying sales growth and a decline in volume last year.
Unilever’s Board and management determined that the ice cream division’s distinct supply chain, seasonality, and capital intensity made it less synergistic with the company’s core focus on higher-margin, scalable brands in beauty, personal care, home care, and nutrition. The separation—expected to be completed by the end of 2025—will allow Unilever to streamline its portfolio, target mid-single-digit sales growth, and improve profit margins.
Valuation estimates for the ice cream business range up to £15 billion ($19.4 billion), making it potentially the largest-ever IPO or sale in the sector. Private equity interest has been strong, and Unilever is conducting management presentations with potential bidders. The move is a clear example of how portfolio optimization, guided by business performance and strategic brand focus, can drive major corporate decisions and unlock shareholder value.
A strong brand increases customer loyalty, enables premium pricing, and attracts investor interest. In fact, brand equity is now recognized as a key intangible asset that can account for up to 20%–30% of a company’s market value. During economic downturns, companies with high brand equity retain more customers and recover faster.
Companies with strong brands outperform the market by up to 96% in shareholder returns during downturns.
82% of venture capitalists now include brand health metrics in their due diligence for funding decisions.
Traditional business models assume rational decision-making, but behavioral economics tells us otherwise. Customers and investors are influenced by emotions, cognitive biases, and social proof—especially during periods of uncertainty. Brands that understand and leverage these insights can frame their value proposition more effectively and drive better outcomes.
Example:
During the 2008 financial crisis, brands that used “loss aversion” messaging (“Don’t miss out on savings!”) and social proof (“Join thousands who trust us”) saw higher conversion rates and retention[9]. Today, these principles are even more critical as consumers seek reassurance and investors look for signals of stability.
Your brand purpose should be more than a slogan—it must be a guiding principle that resonates with both your team and your customers. Define what your brand stands for and ensure it aligns with your business goals and customer needs.
Warby Parker entered the eyewear market with a mission to democratize access to affordable glasses. Their “Buy a Pair, Give a Pair” program built emotional resonance and trust, propelling them from startup to industry disruptor.
In uncertain times, trust is the ultimate currency. Focus on transparent, value-driven communications and leverage customer success stories to reduce perceived risk and build credibility.
Mailchimp’s pivot to a freemium model during the 2008 recession wasn’t just about lowering barriers—it was about demonstrating empathy and value to small businesses. The result? A 650% increase in net income and explosive user growth.
A compelling employee value proposition (EVP) turns your team into passionate brand ambassadors. Companies with strong EVPs attract better talent, retain employees longer, and deliver superior customer experiences.
Citigroup’s financial education program during the 2008 crisis increased employee satisfaction and loyalty, proving that investing in your people pays off in brand strength and business performance.
Audit your existing brand assets to ensure they’re flexible and relevant. Can your visual identity, messaging, and digital presence adapt to new market realities without major investment?
IKEA’s shift to online operations and price cuts during tough times increased market share and engagement, even as sales dipped. Their brand’s adaptability was key to their resilience.
In today’s market, investors are looking for more than just financial statements. They want to see resilient brands with long-term growth potential. Communicating brand value effectively requires integrating brand health metrics and valuation data into your investor narrative. Brand valuation helps investors and external stakeholders see beyond short-term revenue numbers and understand the underlying strength and equity of your company.
Brand metrics, such as Net Promoter Score (NPS), customer retention rate, brand awareness, and customer satisfaction scores, provide insights into how customers perceive and engage with your brand. These metrics can then be translated into financial value using brand valuation methodologies, such as the discounted cash flow method or the relief-from-royalty method. By quantifying the financial impact of your brand, you can create a compelling story for investors about your business’s long-term potential.
In its annual report and investor presentations, Interbrand uses a proprietary methodology to value brands, providing investors with insights into the financial impact of brand equity. In 2023, Apple’s brand value increased by 4.8% year-over-year to $502.6 billion, making it the first brand to surpass half a trillion dollars in brand value. Interbrand’s valuation methodology analyzes the financial performance of branded products and services, the role of brand in purchase decisions, and the strength of the brand in securing future earnings.
As such, investors increasingly recognize that a strong brand is a key driver of long-term value. This makes demonstrating and communicating brand value a competitive differentiator for SMEs and startups seeking funding.
Brand isn’t just marketing. It’s the foundation of your business’s value, growth, and resilience. In times of uncertainty, it’s the anchor that keeps your company steady—and the engine that drives it forward.
At BlueBirds Group, we help you turn your brand into a powerful financial asset, ensuring you not only survive the chaos but emerge stronger, more valuable, and ready to lead your market.
This site uses cookies to offer you a
better browsing experience.
