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ENTREPRENEURIAL BRANDS
In times of economic growth, conditions are perfect for the entrepreneurial brand. There is a classic business school method of brand building, which aims to make a lot of money in a very short time for its owner and developer by selling to a large, established company. There are benefits to both sides. The big company doesn’t have to take the risk of developing its own brand; the initial investors make their fortunes. Sometimes.
The idea You study for your MBA and you learn the rules of how to create a cool brand in a short space of time. You develop your business plan, take it to venture capital companies (VCs) for funding, put the plan into action, attract the attention of corporations in your market, then sell out. The VC gets its investment back with a big financial return, the corporation gets a new brand without having to do all the investment in creativity and the brand owner tuckers his or her millions safely away in the bank ready to start again, or retire for ever, or become a venture capitalist. VCs expect a very high return on their investment, because they often lose their money when brands crash and burn before they are bought. If they don’t get a big corporate buyer, these brands rarely break even because their debts are too high.
196 • 100 GREAT BRANDING IDEAS
100 Great Branding Ideas 14dec.indd 196
12/14/11 11:14 AM
