What’s a Brand Worth? How to Value a Name Like Teeny Cakes or Coca-Cola
Would Coca-Cola still taste like Coca-Cola if it had no name? What if Mercedes-Benz was just called “Standard Sedan”?
These questions opened a powerful conversation about brand value—whether you’re a global company or a local cake shop. As Harat Ken Oo and others discussed, your brand isn’t just a name. It’s an asset—sometimes your most valuable one.
Here’s how to figure out what it’s worth, whether you’re building it for the future or thinking about cashing out.
1. Brand Recognition Isn’t Just for Giants
We all know household names like Coca-Cola, Apple, or Mercedes-Benz. But branding matters just as much for small businesses.
Look at Kirkland, Costco’s in-house brand. It started as a generic label. Today? It’s worth an estimated $75 billion—more than the entire budget of the state of Ohio.
And it didn’t happen by accident. Kirkland built recognition through consistent quality, clever pricing, and deep customer loyalty.
The takeaway: You don’t need to be a Fortune 500 company to have a brand worth protecting—or monetizing.
2. Small Business, Big Brand: Teeny Cakes
Michelle Mahoney’s Teeny Cakes is a local legend. Known for beautiful milestone cakes and quality ingredients, it’s more than just a bakery—it’s a brand.
Michelle invested $50,000 into a professional rebrand. Now, the question is: could she sell it? Or license the name and generate passive income in retirement?
That depends on more than just logo design—it depends on profitability and recognition.
3. The Rule of Thumb for Brand Valuation
So how do you actually value a brand?
According to Harat Ken Oo, here’s a simple formula:
If customers are buying because of the brand’s reputation and consistency, you can estimate brand value based on potential royalty income.
Here’s how it breaks down:
- Brands often command royalty payments of 25% of operating profit
- For a business doing $1 million in revenue with 10% profit margins, that’s $100,000 profit
- 25% of that = $25,000/year in royalty potential
That means Michelle’s Teeny Cakes brand alone could be worth 4x that annual royalty = $100,000, if she chose to sell it.
4. Passive Income or a Payout? The Licensing Option
Selling isn’t the only option.
Michelle could license the brand to another baker or investor and receive $25,000/year in royalties—effectively turning her name into a retirement paycheck.
Harat emphasized that royalty-based valuations should be supported with:
- Historical revenue
- Brand consistency metrics
- Legal protection (like trademarks)
In a 2011 court case (Unilog v. Microsoft), the royalty rule was rejected without supporting documentation. So, always back your numbers with evidence.
5. Intellectual Property Is the New Real Estate
From patents and copyrights to trademarks and domain names, intangible assets are increasingly where value lives.
As John Stewart of Quaker Oats famously said:
“If this business were split up, I’d give you the land and bricks—and I’d keep the brands and trademarks—and I’d fare better than you.”
Whether you’re selling cookies, code, or courses, your brand is your moat.
Final Thoughts: Your Brand Is More Valuable Than You Think
Building a business is hard. Building a brand is harder—but often more valuable in the long run.
Whether you’re a local entrepreneur like Michelle or a national player, remember:
- A strong brand can outlive your storefront
- It can generate passive income
- It can be licensed or sold
- And with the right valuation strategy, it can become your biggest financial asset
So the next time someone asks what your business is worth, don’t forget to answer:
“That depends—do you mean with or without the name?”Would Coca-Cola still taste like Coca-Cola if it had no name? What if Mercedes-Benz was just called “Standard Sedan”?
These questions opened a powerful conversation about brand value—whether you’re a global company or a local cake shop. As Harat Ken Oo and others discussed, your brand isn’t just a name. It’s an asset—sometimes your most valuable one.
Here’s how to figure out what it’s worth, whether you’re building it for the future or thinking about cashing out.
