Pros and Cons of changing a business name

-William Shakespeare, Romeo and Juliet

The name of your business holds a lot of meaning and importance. It’s harder to name a business than some may think. There are many things to consider. Finding the right name can have a significant impact on your business. The wrong name can turn customers away, fail to connect with your target audience and even result in legal issues. However, when businesses grow, the original name is not always best long-term. If you are considering changing your business’s name, consider the following:

Changing the name can align with growth

When you first open the doors to your business, it is hard to predict the future and what your brand will look like years from the start date. If your business begins to offer new products and services, or takes a different path, changing the name can help your business grow into new markets with new audiences.

It is expensive and time-consuming

It takes a lot of time and effort to rebrand your business. You have to notify the IRS, update anything with your previous name on it including licenses and permits, business cards, website, product packaging, mailing address, social media, and signage. Just to name a few. And, of course, notify your customers to avoid any confusion in the long run. When considering this big change, make sure it is worth it.

Brand Equity

This entails the added value, or equity that comes from the familiarity people have with your company name. Changing it takes away some of this equity. If you have built solid relationships and a good reputation, keeping your existing name may be better than changing the name. You will have to rebuild part of your company’s reputation when changing names.