How a Brand-Oriented Strategy Becomes a Survival Tool for New Ventures

By John H. Batchelor, Maggie M. Davis, Timothy R. Mcilveene, Dennis Barber III and Robert D. Perkins

On a quiet street, two CrossFit gyms opened within months of each other. Both had passionate founders, new equipment, and identical prices. Yet, within two years, one was thriving—its logo recognizable across town—while the other quietly shut its doors. The difference was not the product or the price; it was branding. This story highlights a broader truth: Startups that treat branding as an afterthought often fail to secure a foothold in the marketplace. New research and actionable insights can guide founders in building effective, integrated brands that enhance growth and survival.

New Venture Insights: Brand Big from the Beginning

The Hidden Risk in New Ventures

Founders frequently assume that branding is a task for later, something to be tackled once the business is stable. However, research demonstrates that early branding is a critical survival strategy. New ventures face a “liability of newness,” meaning they lack the established reputation and trust that older firms possess. Without a strong brand to signal credibility, even the most innovative products may struggle to gain legitimacy with potential customers and investors.

This challenge is magnified because the creation process for a new venture takes time—often one to seven years—during which the firm is vulnerable. The branding approaches used by large corporations often do not translate effectively to the small business context, leaving founders without relevant guidance. Despite a rise in university entrepreneurship programs, the high failure rate of new ventures remains relatively unchanged, partly because many founders neglect early branding efforts.

Corporate Branding as the Differentiator

Branding is more than advertising; it is about clarifying who you are and why you exist. A corporate brand expresses a firm’s unique purpose, characteristics, and character. For a new venture, this is not just a marketing tactic but a powerful engine for growth. For example, one pediatrician’s office differentiated itself from competitors who focused on “curing illnesses.” Instead, their brand statement was, “We create confidence in parents that together we can maximize their child’s growth and health.” This unique focus guided every customer interaction and set them apart.

A brand-oriented strategy has more impact on the growth of small firms than other strategies. As ventures progress, legitimacy and growth become mutually dependent; organizations that fail to achieve legitimacy are more likely to fail, while those that do tend to grow.

The Path Forward

Brands are increasingly viewed as a critical point of differentiation and a sustainable form of competitive advantage. Despite evidence that a brand-oriented strategy creates a competitive advantage, many firms resist placing the brand at the center of their strategy. Founders often lack confidence in their ability to get a return from branding investments and instead focus on product or technology. However, the lesson is clear: To overcome the “liability of newness” and thrive, new ventures must brand big from the very beginning. The evidence overwhelmingly suggests that a well-defined brand enhances the growth of new ventures by providing the legitimacy required for success.

Key Takeaways For Founders

• Branding is a survival tool, not a luxury. Early branding is a critical first step to overcoming the “liability of newness.”
• Start with your values. Clearly articulate what your company stands for and ensure every action reflects those values.
• Signal legitimacy early. A professional logo, consistent messaging, and a well-defined identity build trust with customers and stakeholders.
• Stay scrappy. Effective branding does not require a large budget. It can be achieved through authentic engagement and community involvement.
• Balance consistency with flexibility. While a clear brand identity is crucial, it must be able to evolve as the company grows.

Quick Comparison: Startup Strategies

Strategy Element	Traditional Product-First Approach	Brand-Oriented Approach
Primary Focus	The product, service, or technology.	The company's core values, identity, and purpose.
Branding Timing	Addressed "later" in the business life cycle.	A strategic tool from the initial growth stages.
Main Goal	Secure immediate sales and market entry.	Build legitimacy, trust, and a sustainable competitive advantage.
Stakeholder Signal	"We have a great product."	"We are a trustworthy and credible organization".

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About The Authors

John H. Batchelor is Chair of the Department of Business Administration in the Lewis Bear Jr. College of Business and a Professor at the University of West Florida. He earned his Ph.D. from Virginia Commonwealth University. His research examines entrepreneurship, leadership, methods, and organizational behavior as well as ethics, motivation, and opportunity recognition. He examines aspects of creativity, emotional intelligence, likelihood of success, and emotional labor. His study of organizational behavior considers implicit theories of work, motivation, and communication.

Maggie M. Davis is an Associate Dean of the Lewis Bear Jr. College of Business and Assistant Professor at the University of West Florida. She received her Ph.D. from the University of South Alabama. Dr. Davis’ research interests include organizational behavior, personality and individual differences, health psychology, and ethics. Her industry experience includes serving as a Licensed Clinical Social Worker, specializing in program development and consulting, within the healthcare and social services industry.

Timothy R. McIlveene is an Assistant Professor at the University of West Florida. He earned his Ph.D. from the University of South Alabama. Dr. McIlveene’s research interests include corporate social responsibility, environmental, social, and governance (ESG), organizational citizenship behavior, and the ethical implications of artificial intelligence and private large language models. He explores ESG practices, strategic management, and institutional theory, with a specific focus on how these factors influence organizational behavior and decision-making.

Robert D. Perkins is a retired Assistant Professor at the University of West Florida. He earned his Ph.D. from Colorado State University. Dr. Perkins’ research investigates the growth of start-up firms, behavioral perspectives on fraud, leadership at different organizational stages, entrepreneurial branding, organizational change, and leadership. His teaching relies heavily on learning through action, as he often incorporates local business scenarios into his curriculum.

This work is adapted from the journal article “Is It a Mistake for a New Venture to Think Like a Small Business?” by John H. Batchelor, Maggie M. Davis, Timothy R. McIlveene, Dennis Barber III, and Robert D. Perkins, published in the Journal of Brand Strategy 2025, 14(1): 72-91. Google Gemini was used as an assistive tool in the creation of this adaptation. See references.