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thebusinessstories.com > Economics > Startup > Why Startups and MSMEs Ignore Branding and Marketing Early and Pay Later
Startup

Why Startups and MSMEs Ignore Branding and Marketing Early and Pay Later

Puneet Yadav
Last updated: March 11, 2026 2:21 am
Puneet Yadav 18 hours ago
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Brand strategist Rushibhi Deshmukh explains how weak early branding and marketing decisions can lead to trademark conflicts, ineffective promotions, costly rebranding, and missed growth opportunities for startups and MSMEs.

Within India’s expanding startup and MSME ecosystem, new enterprises are continually emerging, characterized by innovative ideas, ambitious founders, and promising products. Entrepreneurs often concentrate their efforts on manufacturing, operations, service delivery, and securing their initial customer base. However, a critical component is frequently neglected during the early stages of business development: branding and marketing.

According to branding strategist Rushibhi Deshmukh, the issue is seldom a lack of interest in branding. Rather, many founders misunderstand the significance of branding and marketing in building a sustainable business.

Rushibhi explains that branding, brand identity, and marketing are interconnected yet serve distinct functions. Branding defines how a business is positioned and perceived in the market, fostering reputation, trust, and long-term direction. Brand identity represents the visual manifestation of that strategy through elements such as logos, colours, and typography. Marketing then communicates this brand to the audience through advertising, digital platforms, and other channels that strengthen visibility and growth.

Challenges often arise when organizations bypass the strategic groundwork and proceed directly to design or marketing activities.

In the early stages, many startups and small businesses search online for quick logo solutions. Some rely on AI generated designs, while others engage beginner designers or local DTP centres to create a basic logo so that they can begin operations quickly. Marketing efforts often follow a similar pattern, beginning with random social media posts, advertisements, or promotional activities that lack a clear brand direction.

Initially, this approach may seem practical because budgets are limited and the priority is launching the business. However, challenges often emerge once the company begins to expand.

As businesses grow, they encounter issues that were never considered earlier. Some discover that their brand name cannot be registered as a trademark because similar names already exist. Others realise their logo appears generic or visually similar to another brand. Domain names may already be taken, and marketing campaigns may struggle to achieve strong recall because the brand identity behind them lacks clarity and consistency.

At this stage, many companies approach professional agencies for branding or marketing support. Once a detailed brand audit begins, the gaps become visible.

The business then faces a difficult decision. Either continue operating with a weak identity or rebuild the brand completely.

Rebranding can involve changing the brand name, redesigning logos and packaging, updating legal documentation, replacing signboards, and relaunching marketing campaigns to rebuild recognition among customers. The financial cost can be substantial, but the larger challenge lies in rebuilding trust and market recall.

Rushibhi often summarises this situation clearly: saving a small amount on branding and strategic marketing in the beginning can lead to spending far more when correcting the brand later.

His observations also extend to the broader visual culture of marketplaces. In many global cities, even small shops maintain structured brand identities and clean signage, creating organised commercial streets. In contrast, many Indian market areas appear visually cluttered because branding and marketing communication are often developed without planning or consistency.

For Rushibhi, this difference reflects how branding and marketing are perceived. In some markets they are treated as core business disciplines, while in others they are still viewed primarily as design or promotional tasks.

Rushibhi himself approaches branding from what he describes as a technical perspective. With an engineering background and a strong interest in art and design, he entered the branding field during the pandemic after his previous business venture closed. That period allowed him to study branding and marketing in depth while working on real brand development projects.

This experience eventually led to the formation of IXBRAND, a consultancy focused on brand identity development along with long term brand growth and marketing strategy. The approach combines research, audience insight, and strategic design so that businesses build identities capable of supporting sustainable growth.

To support implementation beyond strategy and design, IXBRAND collaborates with Aakriti Enterprises to deliver integrated branding solutions including printing, packaging, stationery, signage systems, exhibition support, and brand launch activities.

Rushibhi has also launched an educational initiative for students and startup enthusiasts interested in branding and marketing. Participants work on building a direct-to-consumer brand from scratch while documenting the journey from product development to brand positioning and marketing strategy.

For Rushibhi, the message is clear: branding and marketing should never be treated as secondary elements.

Businesses may begin with strong products, but the ones that endure are those that build clear brands and communicate them effectively from the very beginning.

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