Changing the name of a business isn’t a decision you take lightly. You carry various risks when you make a name change. You will lose any brand equity, brand awareness and SEO value you had under the old name. However, there are some good reasons to rename your business. You may have new insights you didn’t have before. There may be a reason to pivot and head in a new direction. Here are some good reasons for a name change.
Your business has outgrown
When you launched your business, the name may have been perfect. However, change is inevitable and unavoidable in business. The name you chose may restrict you and no longer reflect where you want your business to go.
Apple Computers rebranded to Apple, and Tesla Motors rebranded to Tesla. Starbucks dropped the coffee. This meant they weren’t tied to a single product. Your company may describe your main product, but it may no longer convey all your areas of influence.
In the online gambling niche, Parx online casinos were renamed to betPARX due to the brand expansion into new markets. The new mobile app delivers simple, fast, and easier mobile casino and sports betting. The renaming was an effective way to convey the new direction the brand is taking.
The name is misleading
Sometimes you don’t realize that your business name is misleading. People may confuse your business with another one. If your name isn’t that unique, it won’t really stand out and differentiate your company from the competition. A generic name isn’t memorable. If you have one variation of a generic name with slight differences, it will be hard for customers to find you online.
Customers may mispronounce your name or have difficulty spelling it. Confusion can do lasting harm to your business, and it’s definitely worthwhile considering a change. If it takes too much effort to say your name or to spell it, a name change may be in order.
The name is offensive
In 2010, the Isis Mobile Wallet was born. Sharing the name of an extremist military group was not what the company could have predicted. It had to change its name to SoftCard.
Many companies today are in the spotlight for racist names. Companies like Aunt Jemima and Uncle Ben’s have received criticism for names, logos, and images rooted in racial stereotypes.
The name doesn’t match the brand
One of the earlier names of Amazon was Relentless. In a rebranding strategy the brand was renamed because it was felt to be a little intense for the brand personality. The name Amazon was chosen to reflect the vastness of the brand’s offerings. This was very prescient considering the scale to which Amazon has grown.
Conclusion
Don’t let the name you choose limit your business. If you start with a local name and your brand grows across the country, you will probably need to change it. Likewise, if a new name better reflects the extent of your company’s growth, go for it. The same is true if you narrow your offerings and work in a niche or if the name doesn’t reflect the company’s values.
If you have the right reasons for changing the brand name, put it into practice now so you don’t miss out on more business opportunities. Get out of your comfort zone and don’t be afraid to try something new.
