June 28, 2021
Considering Changing Your Business Name? Before starting a small business, most new entrepreneurs spend time thinking about what to call it. They frequently believe that once they choose a name, they will keep it for the rest of their lives. However, the name you chose for your company may not be the best name for it in the long run. As a result, many business owners choose to rebrand.
Businesses change their names for a variety of reasons, some strategic and others more practical. Regardless of your motives, altering the name of your company can have both beneficial and negative implications. Before you decide on changing your business name. examine the benefits and drawbacks, as you would with any important business choice.
We’ll show you how to rename your company. We’ll also go over the benefits and drawbacks of changing the name of your company so you’re fully prepared.
If you’re just starting out, you can take your time coming up with a memorable business name that encapsulates what you have to offer. However, if you want to rename your current company, things can get a little more tricky.
To begin, think about why you’re looking for a new business name. Here are some of the most typical reasons why businesses change their names and begin the rebranding process:
Whatever your reason for rebranding, you should take your time this time to choose the greatest possible name. Many entrepreneurs use business name generators to get their venture off the ground. Alternatively, they poll their current consumers to see if they have any suggestions.
However, before you make your name change official, think about the advantages and disadvantages listed below.
Here Are the Advantages and Disadvantages of Changing Your Business’s Name
Building a business’s reputation and gaining name recognition among your target client base takes time. As a result, altering your name may cause confusion among your current consumers and reverse any progress you’ve made.
Even if you make it apparent that your company is rebranding, it’s doubtful that everyone will know. You should expect to lose at least a few clients as a result of the name change. Some people may believe your company has closed if they can’t find your old name on social media or other sites.
It’s easy to underestimate the amount of time and work required to successfully rebrand your company. For example, you’ll need to notify the IRS and your local government that you’re doing business under a new name.
You’ll also need to update everything that contains your old company name, such as:
Updating systems and obtaining new materials is not only costly, but it can also take weeks, if not months, to complete. Before changing your name, make a list of the areas that will be impacted and make a detailed plan. A single blunder can have far-reaching consequences.
According to Forbes, the average rebranding project might cost anywhere from $1,000 to $50,000, depending on the size and industry of your company. If your campaign fails, these expenditures can rapidly double.
Make sure your new small business name is the correct fit for your company before moving forward. Returning to your old name and brand is costly, and the reputational harm may be difficult to reverse.
Everything is a learning experience when you first start a formal business. This is frequently the case while choosing a business name.
You may have chosen a name that was extremely detailed at first. Maybe the name you chose wasn’t descriptive enough, leaving your potential buyers perplexed.
You can choose a more appropriate business name once you’re certain in your company’s products and services, as well as who your target consumer base is.
Many entrepreneurs don’t know what their brand is when they first start out, so they pick a name for the sake of convenience.
However, as your company grows, you will be able to be more strategic with your branding. This could entail changing the name of your company, especially if you started with something generic or plain.
Customers are more likely to recall a business name that is linked with your brand and easy to remember. Furthermore, it will assist you in standing out among your distinct competitors.
It’s not uncommon for a company to have an identity issue at some point during its existence. When this occurs, many businesses seek to rename themselves in order to reinvent themselves.
You might, for example, discover that you’ve become popular with a market niche you never planned to target. Renaming your business helps you to rebrand yourself and reach out to a new — or larger — audience. There may be long-term benefits for your company if you do this.
When it comes to altering a company’s name, there are several success and failure examples. Choosing a new business name might help a company flourish in some situations. Other times, however, it might be a costly and time-consuming error.
If you’re thinking of renaming your company, you’re probably thinking about it for a good reason. Just make sure to do your homework and analyze all of the prospective advantages and disadvantages first.