It's pretty clear that branding is important for your small business. You need a distinctive, memorable, and enticing brand to separate your startup from the competition and build customer loyalty. But have you considered how your own reputation and public profile might play a role in these goals?

As an entrepreneur or founder, you also have a brand to consider. This, in turn, can contribute to the process of building your business. This article will detail the benefits you receive from investing in a personal brand and some steps to consider if you decide to pursue this strategy.

What is a personal brand?

As a small business owner, you're familiar with branding as a general concept. In simplified form, it's the shorthand way an entity is perceived by the outside world. For a company, it's the reputation you bring to casual outsiders. A brand also represents the core connection you have with current and potential customers.

You've probably spent a lot of time, effort, and money working on the corporate brand for your small business. But what about your personal brand?

Your personal brand describes the way the outside world perceives you as an entrepreneur, business owner, leader, and community participant. This differentiates from your company's brand — although the two interact with each other in important ways.

Think of Elon Musk or Warren Buffett. You might not even be aware of all the companies they control. But you have a sense of who these titans are as leaders and investors.

Besides Tesla and Twitter/X, Musk runs SpaceX, The Boring Company, and Neuralink. Meanwhile, Warren Buffett's Berkshire Hathaway operates businesses as diverse as GEICO and Dairy Queen. Yet, in the public perception, both these corporate heavyweights stand as distinct personalities, separate from the specific companies they lead.

You probably won't get to the global level of recognition of a Musk or Buffett. However, within a narrower community, you can build a personal brand as well.

Why is building a personal brand important?

There are two main factors to consider as you think about investing in your personal brand:

1. The value you receive as an individual
2. The benefits a personal brand can bring your business

It's important to consider how developing a personal brand can provide a boost on both fronts. To start, here are some ways a personal brand can help you individually:

• Fundraising: Gathering funds for any venture comes down to trust. Strangers are slow to become investors. A strong personal brand can fast-track those relationships, as your reputation helps break down barriers.

• Connection of varied investments: Elon Musk is the clear example here. With his personality and profile, businesses as diverse as electric vehicles, space travel, and social media fit easily under a single umbrella. If you've got a wide-ranging set of investments, a personal brand can help tie those together.

• Additional options if your business fails: Unfortunately, not every investment will pay off. When you have a strong reputation, it's easier to launch your next venture. Investing in a personal brand gives you options, even if the market doesn't immediately turn your way.

A personal brand doesn't just help you. It can also open up new avenues for your small business. Here are some of the upsides your company can expect from an improved public profile for you:

• Increased attention to your company: In politics, candidates spend a lot of time trying to achieve what’s called “earned media” — time spent in the spotlight without the need to pay for advertising. A personal brand can help you receive earned media as a business leader. This, in turn, can raise the profile of your company.

• Recruitment of the best talent: Top talent wants to feel inspired. If you have a reputation that resonates with the people in your industry, you'll attract believers in your cause. This bolsters recruitment.

• Partnership opportunities: With an enhanced reputation, it becomes easier for you to make business connections. Other companies will seek you out for collaboration opportunities.

• A dedicated customer base for your products and services: Apple doesn’t have to work hard to promote the iPhone. Part of that enthusiastic fanbase started with the connection many users felt to founder Steve Jobs. Even long after his death, the company benefits from the loyalty he helped engender.

• Improved corporate branding: The time and effort you commit to your profile as a business leader can also feed into the company’s brand. Don’t think of the two as separate endeavors.

• Better team engagement: By becoming an inspirational business figure, you spark loyalty with your employees and increase their sense of motivation. Working for you becomes more than a paycheck. As a result, you could see a boost in retention and higher productivity.

How to connect a personal brand with your small business

There are downsides to a personal brand. As you develop your public profile, you need to keep the long-term goal in mind. Your efforts need to be in service of your business goals — don't let your ego get in the way of corporate development.

Too much attention on a personal brand can steal valuable time from the central task of building your company. Meanwhile, your time in the limelight can become a distraction. An overbearing profile or the wrong type of reputation can overshadow your business.

Given this situation, it's important to weigh your personal brand-building efforts with the other needs your company has. To do that, here are a few tips to keep in mind:

• Set clear goals for your personal brand
• Track the success (or failure) of your brand-building efforts in business terms
• Remain open to feedback
• Budget your time effectively
• Make rational ROI determinations when balancing your personal brand with other demands on your time and attention

How to build a personal brand

We've looked at some of the benefits of developing your personal brand, while also acknowledging some of the potential pitfalls. Now it's time to look at the process itself. Here are some steps to take as you pursue this strategy:

• Assess your current profile: How does the world see you now? This provides an important jumping-off point for your branding efforts.

• Lean into your strengths: Look for the ways in which you're most likely to stand out. Base your target brand on your best traits and the ones that feel most natural for you.

• Develop a coherent vision: What do you want your brand to be? Having a concrete goal will give you a clear direction.

• Build your social media presence: Start building a following online. Done right, this will raise your profile and begin nurturing your broader reputation.

• Become a thought leader: Showcase your deep knowledge by weighing in on critical debates in your industry. Seek out opportunities to share your opinions.

• Speak at industry conferences: Raise your profile by seeking out chances to make keynote speeches or appear on panels.

• Supercharge your networking skills: Personal connections matter in the brand-building process. Expand your networking web to find new opportunities.

• Increase your charity work: You can improve your reputation through activities outside the business world. Philanthropy provides another venue to enhance your profile.

• Update and adjust: Review your personal brand from time to time. Make necessary adjustments to your strategy if you aren't getting the results you expected.

Understanding the value of a personal brand

It might seem like your personal brand is nowhere near as important as your business brand. After all, your main goal remains growing your company. However, you shouldn’t ignore your personal brand completely — your target audience is looking at your character more than you think.

Developing a strong personal brand is tied to the establishment of a positive and professional reputation. This gives you credibility, identity, visibility, and networking support. These advantages can help your small business (as well as your individual career) thrive.

Developing a strong personal brand [...] gives you credibility, identity, visibility, and networking support.

Use the information here to think systematically about your personal brand. The truth is: you likely already have one, even on a relatively small scale. By taking this process seriously, you can bolster your small business and open up your future opportunities.