There’s one piece of advice that successful business owners dish out again and again: ‘when you’re first starting out, do as much as you possibly can yourself.’

If you’re poised to start a business, or even if you’ve already done so, then you’ll know that the internet has made it easier than ever to set yourself up. And if you’re bootstrapping, then it can seem like a good idea to create the basics like your website and logo for free. With websites making design templates simple, accessible, and easily customisable, it’s a no-brainer, right?

Well, not according to Trade Marks Attorney Raquel Garcia, who is the founder of Legiterati, a brand protection firm that creates and protects brands.

Having worked in Big Law for the earlier part of her intellectual property career, Raquel knows the ins and outs of IP. She founded Legiterati to make brand protection accessible for small businesses and startup founders with brilliant ideas. And here, she shares some of the most common mistakes she sees new businesses make. She tells us how to avoid them, and save yourself a whole lot of heartbreak – and cash - in the process.

Raquel Garcia

Let’s talk basics - what’s the difference between a trade mark and a business name?

A business name is one of the requirements to run a business, while a trade mark gives you exclusive rights to use a name, brand, tagline, logo, etc.

A registered trade mark gives you the legal right to stop someone else from using an identical or similar name, brand, or logo as yours. Apart from giving you the power to prevent competitors from ripping off your brand, a trade mark is an asset that can be licensed or sold.

Who needs to trade mark their brand?

Everyone who does business, really! A business that wants to protect and protect their brand assets, ensure that they’re not infringing on others, have peace of mind knowing that they have a course of action to stop others from copying their brand definitely needs to get registered trade marks.

There are lots of ways that you can bootstrap a new business, such as designing logos and websites using free templates. What are some of the issues that can arise from doing this? What would you recommend investing in from the start, and what can you afford to cut corners on?

Issues that may arise include:

·      Logos: while websites such as Canva are such an easy and inexpensive tool, ‘designing’ a logo on Canva does not give you ownership of the logo. Canva’s conditions of use specify that they only licence their templates, images and fonts to the user. This means that you don’t own files that you download, which means you cannot trade mark them.

·      Using a Canva template for your logo also means you’ll have thousands (if not millions) of other businesses who have a very similar (if not identical) logo.

·      As for websites created on platforms like Squarespace, by DIYing your website you run the risk of noncompliance with Australian Consumer Law, without a comprehensive set of terms and conditions and privacy policy.

I recommend investing in:

Brand design

Your brand is the face and persona of your business. You want to make a good impression from the get go. In a competitive marketplace, good design beats good enough every time.

Trade mark searches and registration By conducting a trade mark due diligence (both searches and registration), you will mitigate many risks, such as unwittingly infringing on an existing trade mark - which could mean an expensive rebrand. Getting a trade mark registration is akin to getting an insurance policy; it ensures your freedom to operate under your brand name.

Website terms and conditions, privacy policy, contracts and service agreements custom drafted by a lawyer

Having these means your business is legitimate, and compliant with the law.

@legiterati

@legiterati

If you have eye for design and are confident with DIY, you could cut corners on:

Your website

With tools like Shopify, and Squarespace templates, you can create an amazing website or e-commerce store yourself without spending thousands on a web developer. Ensure your terms and conditions, privacy policy and secure payment systems are in place, however!

Social media marketing

With free Canva templates and downloadable templates you can purchase from graphic designers and places like Etsy, you can create beautiful social media content which you can then schedule on apps like Planoly and Later.

What are your essential steps for establishing a brand, particularly for a small business or start-up?

1.     Come up with a brand name that stands out, and one you can trademark.

2.    Have your brand designed to reflects your brand’s values and messaging. Once you have this, creating your website and planning your marketing will come easy.

3.    Create pre-launch buzz: get your target market excited t ‘meet’ you.

4.    Consistency after launch: this is how you keep the momentum going and maintain and foster your connection with your ideal customer.

Are there any common mistakes you see new brands making, that can cause problems down the line?

·      Choosing a brand name that is not scalable: for example, naming your business after the suburb you are based in. What if you outgrow your suburb?

·      Not doing a trade mark clearance search: I’ve seen many businesses that had to rebrand after finding out too late that their brand name is actually already taken. Imagine all the money wasted getting branding done and products manufactured when you can’t use them.

·      Not getting a registered trade mark early: trade mark applications are on a first-to-file priority basis. This means that even if you have used a brand name earlier than another business, if that other business trademarks the name before you do, they’ll be given priority. If they are granted the trade mark, they could stop you from using your brand name.

How important is it to have a completely unique brand name?

Very! Two reasons: firstly it helps you stand out in the market, and secondly it allows you to protect your brand.

For example, you’re a Pilates studio. Say you named your studio something descriptive like ‘The Pilates Studio’. Your superfans are raving about you, but if these superfans friends ask which studio they are raving about, you’re easily forgettable if they say ‘The Pilates Studio’. You’d drown and look generic amongst the thousands of results on Google searches too.

Whereas, if your studio’s name was something unique and non-descriptive like, MegaMode - a name like this stands out when it is recommended by word of mouth, and would come up as the top result when Googled.

Having a completely unique brand name also helps with trade marking it. Descriptive and generic names don’t meet the criteria of the Trade Marks Act 1995 (and its international counterparts) which means you can’t trademark names like ‘The Pilates Studio’.  

What are your favourite examples of fantastic branding and why?

This is a tough question, there is quite a few! But two that stand out are Aesop and Gymshark.

Aesop: Name a more iconic cult brand! I love the story behind the name: Aesop is named after the fabulist whose tales are built around moral lessons.

Aesop is the gold standard in branding: it tells a story, is consistent, recognisable, and aspirational.

Gymshark Gymshark knows and understands its target audience on a very deep level. It knows the lingo they speak, where they hang out and what content they consume and engage with. The result is a loyal and trusting customer base.

It’s no wonder that while it’s not even a decade old, Gymshark is one of the most popular and recognisable brands in the world.

It’s also worth nothing that both Aesop and Gymshark registered their trade marks not long after they launched their brands.

Want to know more?

Go to Legiterati.com

Follow @legiterati