Business vs Brand: Which One Are You Building and Why It Matters

Ever looked up how to run a successful business only to find terms like “brand identity” and “brand management” thrown at you? What even is the difference between business and brand? Are they interchangeable?

If you don’t know what you’re building, how do you know where to start? So, let’s settle the age-old confusion between business vs brand.

To start with the basics, business is the exchange of products or services for money or in kind, whereas a brand is about making your business stand out among all the generic ones.

For instance, a business could be something as simple as selling homemade cakes or as complex as selling biodegradable burial pods.

When they market it with unforgettable messaging, a logo that stands out, or a design that is so unique that it grabs the customer’s attention, that’s branding at work.

Without further ado, let’s move on to the big picture. In this blog, I’ll cover the following in depth:

Business vs brand: What’s the difference?

A business is an enterprise engaged in the sale of goods or services for either money or the exchange of other goods or services (a.k.a. the barter system).

At the core of a business is the product or service you offer. A business owner may have systems in place to run the day-to-day operations. Pricing and promotional activities, such as offers or discounts, also come under their wheelhouse.

You may decide to add new products, offer a new service, or even open a new location to grow your business.

Imagine you run a café. Apart from beverages and light snacks, you might offer cupcakes, cookies, and even scones. You may also create a cozy spot where people can sit and scroll through Instagram using your in-store WiFi while enjoying your treats.

These strategies and tactics might help you gain new customers. But without a distinct identity, customers may buy once and forget about you. (Unless you have the most mouthwatering items or the best ambience, of course!)

To them, you’re just one of the twenty cafés they found on Google. So, how do you set yourself apart or appeal to your ideal target audience?

If you guessed marketing, you aren’t entirely wrong. But while marketing might get their attention, branding builds preference.

A brand is a reflection of who you are as a business. It thinks beyond the functional benefits of your business. It helps you connect with your customers emotionally and gives them a reason to be loyal to you and only you.

A brand is arguably your most important hook. Your name, visual assets, and personality and values influence customer perception and how memorable you are. It can also impact whether your ideal audience deems you trustworthy.

According to an Edelman 2025 Trust Barometer report, 67% of customers agreed that while they may try a product with a good reputation, the decision to purchase or stop purchasing depends on how much they come to trust the company behind the product.

Why does the difference between business and brand matter?

Both business and brand matter, but on different levels.

The business gives you ways to earn revenue by selling products, services, or even ideas. But if people don’t feel anything toward your business, every sale becomes nothing more than a mere transaction.

On the plus side, your business offers a solid groundwork upon which you can build a brand.

A brand is the missing link between you and your customers. It ties key elements together to make your business relevant, trustworthy, and memorable to your customers.

Let me elaborate with yet another example.

Have you ever watched movies and suddenly recognised the cute, little blue box that actors pull out to propose? Yes, I’m talking about the Tiffany Blue Box!

The brand stands out with its aesthetically pleasing robin’s egg blue colour, which became so popular that it was trademarked in 1998. The iconic brand even earned a space in movie titles like Breakfast at Tiffany’s and Something From Tiffany’s.

This is a classic example of a brand being bigger than the business. Though their jewelry is beautiful, seeing that blue box is enough to make people giddy with anticipation.

With all the praise I have sung about brand, it is easy to get the main idea twisted. So allow me to clarify:

Although a brand may be bigger than a business, it needs the latter to grow. In contrast, a business can exist without a brand, but powerful branding gives it a soul.

Signs you’re just building a business

So you have a product or service that could drive your potential customers into a feeding frenzy. And you have nailed down the pricing and promotional aspects. But something is amiss.

Here are a few tell-tale signs you’re just building a business:

• Your focus is on the next sale, the next launch, the next pitch

You focus on short-term tactics instead of adding long-term value to your customers. By ignoring how it emotionally benefits the person on the other end, you could be leaving money on the table.

• You chase trends instead of defining what makes you unique

You jump on every trend like that guy who constantly changes lanes on the road. You’re looking for a shortcut. That puts you at risk of being stuck in a never-ending loop, chasing vanity metrics and hoping they translate.

• Your business is growing, but no one remembers you

Although your products or services sell fairly, your customers lack a meaningful connection with your business. People engage with or purchase products and services from hundreds of businesses. Why should they remember you?

If you’re guilty of any of these, don’t worry. You’re not the first person to do it, and surely won’t be the last. But you can still use this as an opportunity to change how you think of business.

So, let’s see what it looks like to actually build a brand.

What it looks like to build a brand

Your product or service may change in the next 2 or 3 years, but your brand can last a lifetime.

And how do you ensure your brand does that? By selling an emotion, a feeling, a lifestyle. People don’t just buy Nike; they buy motivation. People don’t just buy a Volvo; they buy safety. They don’t just buy Apple; they buy status.

There are a few other signs you’re well on your way to building a brand:

• You’ve defined what you stand for

A good brand knows exactly who they are, why it exists, and what it stands for. Only then can you effectively connect with and sell to your ideal customers.

• Your visual design, verbal communication, and experience are aligned

When prospective clients can easily recognise your brand name, logo, or even colours, you stand a better chance against your competitors. Further, creating a positive experience encourages them to recall your brand favourably and be your biggest advocate.

• People remember how your product made them feel

When your customers share on any platform or even through word of mouth how your products made them feel, these shared experiences have the ability to shape the overall opinion and appeal of a brand.

• You’re building something people want to be part of

People feel drawn to brands they see as reflective or aspirational. How we see ourselves and what we aspire to be influence which brands we find desirable. Using Starbucks coffee to project a desirable social image is a prime example of ‘I buy, therefore I am‘ psychology.

To establish a strong brand, you need to work on developing a strong brand identity, creating consistent positive experiences at every turn, and maintaining a memorable brand image.

A good brand builds a community and increases customer loyalty.

Can you build both?

Yes, and you should!

Building a business vs a brand is not mutually exclusive. In fact, I’d argue they are interdependent and become stronger as a unit.

The truth is, without a solid business foundation, you have nothing to brand. And without a compelling brand, you are just another face in the crowd.

Having a marketable product or service is the first step in building a business and getting customers. The brand’s primary job is to build trust and value for those customers.

In simpler words, a business is the operational framework and a brand is the emotional engine.

Even though both go hand-in-hand, you may wonder which takes priority. That leads us to our next question.

What should you focus on first — business or brand?

To determine whether your brand or business needs more work, it is helpful to identify your current stage and outline your goals and vision.

If you’re launching a new business, as a rule of thumb, I’d suggest you familiarise yourself with your business first.

That is not to say you need to sort and plan every single business operation. But you should know the basics, such as business overview, target audience, top competitors, etc.

Again, the logic here is that business serves as the basis for your brand, not the other way around.

Your brand should only promise what your business can actually deliver. And your business must deliver on what your brand promises.

If you have insufficient operational strength or poor customer experience, focus your efforts on the business side of things. More specifically, find opportunities to improve your business by strategizing and prioritizing key resources.

On the other hand, if you’ve got that part down but lack awareness or customer trust, concentrate on creating a brand that supports your business and clicks with your clients.

Keep track of both the brand and business health over the years. Although business strategy differs from your brand strategy, if either side takes a hit, the other may suffer too.

How to shift from business-only to brand-led thinking

By now, you realise that both business and brand are equally important. Let’s quickly review how you can shift from a business-only approach to brand-led thinking, thereby driving more connections and even sales.

• Define/revisit your purpose

Brand purpose is the reason your business exists, beyond making a profit. A clear and meaningful purpose can give a new direction for your business and a better way to connect with your customers.

• Clarify who you serve and the desired perception

Take the time to learn more about your current customers. This is also the time to analyse if they are your ideal audience. Then, think about how you want them to feel when they think of your business.

• Define your positioning and messaging

Check whether your current messaging communicates below-the-surface details about your business and positions you as the best choice for your audience. Evaluate if and how well it lands with your customers

• Invest in brand identity and stay consistent

Once you define your brand foundations, you can proceed with creating a unique brand identity. Developing distinct visual and verbal assets can help you position your brand in the minds of your audience

• Ensure internal alignment

Your role doesn’t end with creating a brand identity. You need to share it with your team and implement it across all touchpoints. When you live and breathe the brand, it becomes easier to attract the right employees and customers

You can learn the step-by-step process of developing a comprehensive brand strategy, including purpose, target audience, personality, etc., here.

Examples of brand-led businesses

Apart from the Tiffany example given above, below are a few well-known companies that gained further popularity because of what they represent and how. They offer insights into how a business can become more self-aware and focused by leading with a brand.

Patagonia

Patagonia is one of the first brands that often comes up when speaking about authentic brands. In fact, it’s uncommon to find any related article that doesn’t mention this brand.

Apart from their durable clothing, Patagonia became known for their efforts to promote sustainability and protect our planet. In 2011, they ran a provocative ad on New York Times, ‘Don’t Buy This Jacket‘, to encourage responsible consumerism.

In 2022, Patagonia transferred ownership to Patagonia Purpose Trust and the Holdfast Collective in a radical move that aligns with their mission and core values. The founder, Yvon Chouinard, said that instead of “going public,” they are “going purpose.”

That’s exactly why Patagonia is a prime example of how a brand guides the overall direction of a business, and not just vice versa.

Dove

Dove made a splash in the industry with their mild, pH-neutral cleansing bar and commitment to Real Beauty. They feature real women in their ads rather than models.

In an AI era, where 90% of content is predicted to be AI-generated by 2025, Dove increased efforts to protect real beauty by committing to never use AI-generated content to represent real women in its advertisements. They also created a prompt playbook, providing tips to create AI images that represent beauty, without bias.

Despite major companies shifting towards the use of AI, Dove’s choice to stick to their brand ethos was well-received. The campaign received 94% positive sentiment. This goes on to prove how a branding mindset can drive trust among customers.

Oatly

Oatly is a good example of how a business can champion a serious cause, but with so much personality that it makes people pause and take notice. They primarily serve people with allergies or those who make conscious lifestyle choices for their bodies or the planet.

People of all age groups and cultures respond to humour. Oatly uses self-deprecating humour and a provocative, quirky personality to their advantage. They carry this across all their touchpoints, carving out a unique brand identity that has been key to their success. Check out their obligatory “About page” for more context.

Like most businesses, they have run into their fair share of controversies. But unlike most businesses, in line with their cheeky brand character, they also made a website entirely dedicated to it.

Key takeaway

You may be running a business with a great product/service, but no one recognises your brand. Or perhaps you have a great brand, but you’re struggling to convert it into paying customers and grow your business.

If you’re in a similar situation, this may be your sign to focus on building either your business or brand, or even both. But which should you focus on first? Well, that depends!

Strengthening your business operations or creating a recognisable brand may hold the key to opening new doors to success. Ultimately, it’s not a one-size-fits-all solution and depends on your current stage and goals.

While a business provides the foundation for a brand, a brand is a business with a soul. Which one are you really building now?