I got a call this week from a retailer who wanted to retire and sell his business. He was very profitable, the store was up to date and had a strong customer base. But no one wanted to buy it. He wanted to know why.

Instead of answering the question directly, I answered it by asking him a question. I asked him why do you think that’s happening? I knew he was sharp enough to know and he did. He answered with a lesson we can all learn from. He said, “I built a store that was dependent on me. I never delegated any important decisions to anyone. I was the store. Plus we prided ourselves on carrying only the top name brands.” Then he said, “Why would anyone want to buy a business like that? Without me, there is nothing. And as for the labels I carry, you can always buy them, and if not, they can be replaced. There are other resources that are just as good.” My heart went out for this man as we planned a going out of business sale.

The most important brand you carry is the name above the door. It can’t just be about you. The brand must have its own identity. Yet so many independent retailers don’t believe this. It is the difference between being able to sell your business or going out of business. Please don’t misunderstand me — the Going Out of Business Sale can make lots of money. However, if the name by itself (without a person attached to it) has value, then the business has value. The name must mean something in the mind of consumer. It must represent something. It might be dependability, reliability, being familiar with the customer, quality, or service. Just ask yourself — what business would you rather buy? MacDonald’s or Joe’s Burgers. You might be saying that McDonald’s was named after two brothers and you are right. But it took Ray Kroc to turn it into a brand that is worth billions.

There are two parts of branding. One is creating a separate brand identity for the business and the second part is creating your own brand of merchandise, your collection.

Let’s go back 100 years to fully understand the concept of brand. Around the turn of the 20th century, the largest retailers in America were A & P and Sears Roebuck & Company. What products did they carry? Their own brand — A & P products and Craftsman from Sears being the most famous. The richest people in America were the retailers. But then companies like Kellogg’s, Proctor & Gamble, General Mills, and even Black and Decker started advertising directly to the consumer. This advertising initiative forced the retailer to carry their merchandise because customers were coming in demanding it. The shift was on. The purse strings or profits were moving from retailer to manufacturer.

Les Wexner and The Limited are the perfect example and model to follow. Wexner opened his first store in 1963 but didn’t start his expansion explosion till the 70’s. The 70’s were a time in the apparel industry when discount stores were the rage. Stores such as Marshall’s, TJ Maxx, and Hit or Miss were the hot retailers. Discounting was coming to mainstream America. Brand Names For Less and 20-to-40% off everyday was the advertising mantra. Wexner decided to go in another direction. He didn’t carry the brands that the discounters were going to carry. He created his own brands so that he competed only with himself. He had manufacturers make merchandise and put his name on it, not theirs. He created his own uniqueness and consumers had to go to one of his stores to get this unique merchandise.

Today The Limited has grown to 5,300 stores and 9 retail store brand names such as Express, Structure, Lerner New York, Lane Bryant, Victoria Secret, Bath and Body Works and The Limited, just to mention a few. Wexner created some of these names while others came from companies that he bought. But nevertheless, he worked his magic on the name. The one concept that remains constant with Wexner is brand. He gets it. If you go to The Limited’s web site, you will see this wonderful quote for all of us to follow. “We continue to build a family of the world’s best fashion brands that creates sustained growth of shareholder value by focusing our time, talent and capital on the highest return opportunities.”

Are you creating a great brand? Does your brand have brand equity? What is brand equity? Yes, it’s the value of the brand, but a better definition is the extra amount of money that someone is willing to pay for the exact same product.

A store that focuses on building their brands is saleable. Without a strong name, the most you will ever receive upon selling your business is the amount of business generated from a going out of business sale. Focus on your brands.