5 Criteria for Investors When Looking at a Strong Brand to Invest In

When it comes to investing in a brand, there are a lot of factors to take into consideration. In a Forbes interview, private equity titan David Rubenstein highlights how markets are getting more sophisticated and more people are putting their money at risk, which means stakes are also getting higher. In an era where new names are emerging left and right, here are 5 important criteria investors should look into when looking for a brand to invest in.

1. Broad Target Market

One of the safest ways to pick a brand to invest in is to assess the size of its target market. Comparing the strengths of a broad market and a smaller, niche one is a common dilemma for investors. However, it’s undeniable that a larger target market increases a company’s revenue and cash flow potential, which is what makes them a good choice for investors. Apple, for instance, enjoys sustained success thanks to its extensive market.

2. Unique Branding

To attract investors like you, reliable brands spend a lot of time refining their corporate identity. That said, we also need to take a look at elements like brand identity, company culture, and online presence, among other things. Using Namechk is a great way to verify a brand’s domain name on social channels and online platforms to check its uniqueness. A brand with a firm domain name is also a good sign of credibility, longevity, and impactfulness.

3. Solid Team

In our 5 Criteria for Investors to Consider When Evaluating a Startup, we place importance on checking the qualifications of a brand’s management team. Make it a point to research their operational and technical expertise and how well they can use capital to grow their company – this is where track records come in. Having a team that has previously worked on successful projects is definitely one of the defining factors of a strong brand.

4. Value-Focused Mindset

One of today’s top PR trends is ethical awareness for businesses, but there’s a high chance that it’s a trend that’s here to stay. Entrepreneur explains that consumers are now actively discerning brand values and siding with ones that they think align with their personal values. Therefore, it’s crucial to study potential brands inside and out to make sure that they are able to uphold their values consistently. 

5. Expanding Industry

Lastly, it’s a no-brainer that fast-growing industries are likely to have brands that are expanding at an equally rapid pace. For instance, Statista shows that IT is a prime example of a fast-growing industry, with a growth rate of 104%. Brands in expanding industries like IT tend to cross over to other industries. Take a look at Alphabet (Google) – as an umbrella tech platform, it has now taken root in the software, eCommerce, and even the education industry.

Conclusion

Making investment decisions is definitely not an easy task. But more often than not, there are key factors that will affect a brand’s odds for success. In this article, we elaborated on the target market, branding, team, values, and industry as five of the most important criteria to assess. To get started on investing and diversifying your portfolio, VerifyInvestor.com can help you become an accredited investor within a few simple steps.