The name of your business holds a lot of importance. First of all, a catchy name will make potential customers notice and remember your brand. Secondly, it helps set your business apart from the competition. A business name should be unique enough to reflect the essence of your venture and also flexible enough to accommodate future growth.
When famous fast-food chain IHOP changed its name to IHOb, it caused a media frenzy. The reactions were mixed, but most customers were unhappy with the new name. In the end, it just turned out to be a publicity tactic to promote their new line of burgers. The company achieved what it wanted to- customer attention. And they proceeded to change their name back to the original IHOP, which ultimately made everyone happy.
Did you name your business in a rush and ended up with a name that you don’t like anymore? Have you changed the course of your business and the current name is no longer relevant? Such situations may prompt you to change your business name. However, it’s important to first weigh the pros and cons of renaming your business. Take a look.
Pros
More Fitting to Your Business
When you’re launching a business, it’s difficult to clearly picture what the future of your brand will look like. It’s possible that your business takes a different path than what you planned for.
Many entrepreneurs choose a name that’s way too generic in order to accommodate such deviations. But once the business flourishes, this generic name might not do it justice. Renaming may be essential to have a name that fits well with your business.
Widening Your Target Market
You can plan as much as you want, but uncertainties and surprises are bound to happen in the business world. One of the pleasant surprises could be winning an audience that you never intended to target. If you want to bank on this opportunity, rebranding may be necessary to grow your venture in new markets.
You Know What Works
As previously mentioned, being a budding entrepreneur, you may have picked a generic name or named your business in a rush. Now that you’ve gained practical knowledge in the industry, you know what works and what doesn’t. This may urge you to change your business name to something that is more promising.
Cons
Loyal Consumer Will Be Confused
Your loyal customers have formed an attachment with your current brand name. The brand name is instrumental in making your product easily recognisable and differentiable. Changing that means risking this customer loyalty. Some may not connect with your brand anymore, while others may get confused.
Complicated & Time-Consuming Process
For changing your own name, you need a deed poll and the process is fairly simple. However, the same is not true for changing the name of your brand. You have to notify the relevant authorities, shareholders and of course, announce it to your customers. It’s a time-consuming and complicated process.
Inconvenience for Employees
Switching to a brand new name can increase your employees’ workload. They have to make extra effort to inform clients about the name change and explain the reasons. The work isn’t done as soon as you take care of the legal paperwork. It is an ongoing process that will take months to implement.
It’s Expensive
You’d have to update the new name on your website, email, business cards, letterheads, product packaging and so on. It can be quite expensive.
Final Words
You should take time to analyse every consequence of renaming your business. This decision could propel your business to exceptional success or an untimely downfall.
Interesting related article: “What is Brand Management?“