If there's a trend in branding at the moment, it's one focused on "rebranding." We've not only been busy lately with rebranding projects, but have seen some of the behemoth brands rebrand themselves. Whether it's in response to an organization wishing to shift its differentiation, repair a less-than-perfect image or just generate new interest, we can only speculate. But there are some important distinctions to point out.

How do you know whether to just refresh your identity or do a true rebranding? And as a company rebrands, does it necessarily have to refresh its logo? In the small business world, that decision is often driven by what funds are available to spend on it. But that's not what should drive such a decision. Compared to the potential return good branding can bring to a company, the cost to rebrand is one of the smaller costs of doing business. So how do you know when one, and not the other, is needed?

First, of the two choices (new logo or new focus) the business priority is new focus, or at least shifted focus. You can use an identity upgrade to express that new focus in a transitional way and ease into a major shift. Or you can introduce your new focus and keep the logo as a stabilizer so customers will be able to accept your shift without having the sense that you are now foreign to them. It depends on how established you are and what impact you are hoping to create.

Second, if you haven't expanded your product or service range and you're just reposing your products or services within a new market or with a different relevance, you may only need a logo, tweaked brand language, or tagline change, without a rebrand. As long as your message is still on target for the new market, and speaks to their needs appropriately, you should be fine.

Can you make a shift without either a rebrand or logo upgrade? Sure. It might put a new fire into your sales people and employees if you do. And it might reinvigorate your company's self-view and commitment level. But the likelihood it will translate into concrete revenue — slim.

What matters most is that you're always thinking about your customer. And that what you do is rooted in deeper thought, and not just a surface exercise. Remember, branding is not a marketing ploy, it is as core a business function as your name and what products or services you choose to offer.

If you find yourself in the unfortunate situation that your brand has lost its fire, business is flat and falling, and you think it's a result of competition out-shining you, rebranding can give your business the energy it needs to not only stay in the game but shine even brighter. But if you just dust off the logo and you don't reinvigorate your business proposition you will only see short-term results. You need to take a 180-degree (sorry!) approach and make deep-rooted changes — change the whole experience of doing business with you. The moment a customer steps into your office or store, views an ad or visits your website, they should be able to see and feel a difference.

~