You’ve been in business for a while now and things are going well. Your company is profitable, you have a great team in place, and you’re doing what you love. But there’s one thing that’s been bugging you: your business name. Maybe it’s not as catchy as you originally thought. Maybe it’s too similar to another business in your industry. Or maybe you simply outgrew it. Whatever the reason, you’ve been thinking about changing your business name.
But is that really a good idea? Like with anything else in business, there are pros and cons to consider.
One of the main reasons you might want to consider changing your business name is if you’re pivoting your business. This means that you’re changing your focus, target market, or mission in a way that warrants a new identity. For example, let’s say you started out as a wedding planning company but have since shifted your focus to event planning. In this case, a new name would make sense because you’re no longer targeting the same customer base.
Con: Lack of Brand Recognition
If you’ve been in business for a while and have built up a good amount of brand recognition, then changing your name might not be the best idea. Your customers have come to know and trust your brand, so why risk losing that hard-earned goodwill? If you do decide to change your name, you’ll have to start from scratch in terms of building name recognition. That means investing time and money in marketing and advertising to get your new name out there.
Pro: Brand Alignment
On the other hand, there are some cases where changing your business name can help to better align your brand with your company’s mission or values. If your current name no longer accurately reflects what you do or who you serve, then a change might be in order. For example, let’s say you started out as a small boutique but have since grown into a full-fledged fashion retailer. In this case, changing your name to something that reflects your new status would make sense.
Con: Potentially Expensive
Changing your business name is not a decision to be made lightly. There are a number of costs to consider, both in terms of time and money. If you have any existing signage or marketing materials, those will need to be updated with your new name. Additionally, you’ll need to update your website and social media accounts. Depending on the extent of the changes, this could end up being quite costly.
If you’re thinking about changing your business name, be sure to weigh the cost of doing so against the benefits. Contacting a group of experienced attorneys who can answer all questions you may have, as well as helping you weigh out all of the pros and cons, can be a great way to start. Contact us at 248-572-1050 to get started today.