What’s the true value of your brand? (It might be more than you think)
Most business owners can tell you what their equipment is worth, and their building or the balance in the bank.
But what is your brand worth?
Anyone?
And yet, when it comes to long-term success, your brand is likely one of the most valuable things you own, especially if you’ve been in business a while and built up loyal customers, solid word of mouth, and name recognition in your market.
So, how do you work out the value of a brand?
There are complex, accountant-approved methods used by brand valuation firms and corporate finance teams. They use terms like "royalty relief", "discounted cash flows" and "excess earnings". These are important in mergers and acquisitions, but let’s be honest, most of us aren’t selling to Unilever anytime soon.
So here’s a simple, practical shortcut you can try right now. It's not a formal valuation, but it gives you a rough and ready sense of the goodwill and trust built into your brand:
Average Net Profit (last 3 years) × Number of Years’ Purchase = Brand Goodwill Estimate
Let’s say your business has:
An average profit of £150,000 per year (after costs and tax)
A track record of consistent performance over 8 years
That gives you a goodwill estimate of:
£150,000 × 8 = £1.2 million
That’s not just theoretical. If someone wanted to buy your business, they wouldn’t just be buying assets or spreadsheets; they’d be paying for your name, your reputation, and the customer loyalty that delivers consistent profit.
That’s the value of your brand.
Note: This approach is based on a widely recognised accounting method called the Average Profit Method. It’s often used for small business goodwill calculations and informal valuations.
Why this matters
Understanding the real-world value of your brand changes how you treat it. You start to see why it’s worth:
Investing in design, messaging and consistency
Protecting your name and logo with a simple trademark
Telling your story clearly and confidently
Charging what you’re actually worth
Because a strong brand doesn’t just make you look good, it helps you grow faster, charge more, retain customers, and attract better opportunities.
Want help unlocking that value?
At Bespoke Brands, we help professional service businesses uncover, strengthen, and showcase the brand value they’ve already built, and position it for the next stage of growth.
If you suspect your brand is underselling your expertise, get in touch. We’ll help you tailor it to fit what you’re really worth.
Author: Lance Corrigan
Creative designer with a passion for visual communication and brand development, and a vision to make a positive impact on the world through design.
