Business survival is a broader concept encompassing a company’s health and viability. On the other hand, brand survival is more specific, focusing on the resilience and ongoing positive perception of the brand itself.
Businesses will only survive long-term if they recognize and adhere to business and brand survival fundamentals.
This business article examines the differences between business and brand survival. Is your company doing well with one but ignoring the other? Read on to find out.
Business Survival Basics
Business survival pertains to the overall ability of a company to continue its operations and stay afloat in the market.
What influences business survival?
Factors influencing business survival include:
- Financial stability
- Operational efficiency
- Adaptability to market changes
- Effective management
- Ability to generate revenue
What are the key indicators of business survival?
Key indicators of business survival include profitability, cash flow, market share, and the ability to withstand economic downturns or unforeseen challenges.
Profitability is revenue exceeding expenses. A business that earns more than its operating costs is considered profitable.
Cash flow is money on hand to pay for expenses and handle unexpected circumstances. Therefore, healthy cash flow reserves are required for a business to be considered cash flow positive.
A business needs to manage its debt to obtain a positive cash flow status. Understanding debt-to-equity ratios and ensuring it can meet its financial obligations are fundamentals of good debt management.
If debt blooms, a business needs healthy liquidity. Assets that can be converted to cash to meet debt obligations, including money, short-term investments, and bonds, are liquid.
Managing resources effectively with a well-structured financial plan and budget allows a business to allocate funds strategically to meet challenges and grab opportunities.
Business survival also requires diversification. Creating many revenue streams from various customer bases protects the business from dependence on one product or service offering, which is necessary for business survival.
Brand Survival Basics
Brand survival focuses specifically on the sustainability and relevance of a company’s brand in the market.
What factors influence brand survival?
Factors influencing brand survival include brand reputation and loyalty, customer perception, effective marketing strategies, and the ability to differentiate from competitors.
What are the key indicators of brand survival?
Critical indicators of brand survival include brand recognition, customer satisfaction, positive brand associations, and the brand’s ability to evolve and stay relevant in the minds of consumers.
Brand survival focuses on the following:
- Know Your Audience
- Staying Current with Trends
- Using Emerging Tech
- Collaboration With Partners
- Environment and Social Responsibility
Dedicating resources to work on brand survival fundamentals keeps the sales coming in.
Regular market research to stay updated on changes in customer needs and expectations never ends.
Engage marketing data analysts to delve deeper into understanding a target audience to learn more about their preferences and behaviours.
AI in marketing improves the accuracy of collection, analysis and reporting. When a business uses AI tools to do mundane marketing tasks, human marketers can focus on creating content that enhances personalized experiences and brand loyalty.
Leveraging digital marketing channels, such as social media, email, and content marketing, is necessary.
A business active on social media platforms where their audience spends time can respond promptly to comments and messages, fostering a sense of community.
Additionally, sharing updates on your products or services to meet changing customer needs is an opportunity to get ahead of the competition.
Use the innovators and early adopters of the technology curve, who adapt quickly to change and are most willing to try new offerings. This group comprises two out of five categories of the tech curve, which is likely to be 5% of your target audience.
Once the innovators and early adopters have tried your new offerings, they can be inspired to share their experiences of your new or updated offerings with the early to late majority, who make up the most significant chunk of your customers and where your business will make the most revenue for business survival.
CSR and Sustainability
Align your brand with social and environmental causes. Show commitment to corporate social responsibility, as many customers value socially conscious brands today. To do this well, join synergistic businesses to promote both brands.
Collaborate with influencers to reach new audiences who genuinely care for and respond well to social and environmental causes.
Your marketing team can form partnerships that align with your brand values and goals to strengthen your brand’s survival.
Some examples of corporate social and environmental causes include supporting education with scholarships and donations. Investing in your local community with financial support in projects that make a difference to the well-being of people, domestic animals and wildlife.
Securing the future of a business goes beyond the basics of business and brand survival.
Innovation is required. Talent management with robust recruiting, developing and retaining top performers should also be a priority.
We mentioned AI in marketing; however, that is just the tip of the iceberg in emerging technology. Staying up to date with technology developments and using it to improve efficiencies may be the difference between business failure and survival.
What are the consequences of ignoring the fundamentals of business and brand survival?
Neglecting business and brand survival fundamentals will have serious consequences that will impact your stakeholders and staff.