We’ve all heard (read: rolled our eyes at) an over-the-top quote about inspiring “change” in our lives, but deep down we know that change can be good, and sometimes even necessary. If your organization is considering a major brand change such as renaming, it’s important to do it the right way and for the right reasons. A name is a significant part of one’s identity, and your business name is no different – it’s the front door to your entire brand. While renaming a business can be risky, when done well, it will pay off.
Why Should You Change Your Brand Name?
To be candid, not every reason for renaming a company embodies sunshine and rainbows. Occasionally, a name change is unavoidable due to origins outside of your company’s control. This is all too familiar for Isis Financial Services, now Bay Debt Services, and the Lance Armstrong Foundation, now Livestrong Foundation. But, in most cases, a name change symbolizes an optimistic shift in your organization. You may even feel giddy with excitement thinking about brainstorming names and researching trademarks on the TESS website (or is that just us?!). In short, there are lots of reasons why a name change is a bad idea. Today, we want to focus on the reasons why you would change your name.
Your Company is Facing Legal Issues
As the song goes, “I fought the law, and the law won.” Sometimes, legal situations require a name change. Often, name issues are related to marks registered with the United States Patent and Trademark Office. Trademark issues can arise if two businesses share an identical or similar name and compete in the same market. We’re not lawyers, but the general rule-of-thumb is if the situation “causes confusion” you may have a problem on your hands. Likely, if your company did its due diligence in the initial naming process, a legal issue is uncommon and nothing to lose sleep over. However, it’s critical to research trademarks when choosing a new business name, logo, or tagline.
You’re Going Through a Merger or Acquisition
If your company goes through a business transition, such as a merger or acquisition, a name change is common, and often a good idea. Merging businesses, and retaining separate brands can be effective, but maintaining and building two brands simultaneously moving forward will be more work than the effort involved in a rebrand. Commonly, the acquired company simply takes the name of the new organization. Although, it’s not always that straightforward, and the new-found partners may decide to merge names, or as some married couples have decided, to create a new name altogether.
Your Name is Too Narrow
Perhaps your company launched new products or services, and now your name is backing your brand into a corner. If your brand name is limiting the company’s growth or losing its competitive edge, even a name change can help direct your future. For example, Dunkin’ Donuts has expanded their menu over the years and recently decided to drop “donuts” from their brand name to escape its limiting inference. All businesses go through an evolution of their services, solutions, and products—when that occurs, sometimes it makes the original business name obsolete. When that happens, it may be time for Company 2.0.
You Want to Signify a Strategy Shift
Has your organization decided to reinvent themselves by trying a new business model or hiring new leadership? A new name can be a good internal and external shift to signal a change. For instance, if you started as strictly direct-to-consumer, but soon you’ll be targeting health plans and clinicians, you may want a brand that appeals to this broader audience. Tiny Speck made a computer game called Glitch that flopped; the team pivoted, and one year later, launched Slack, a business collaboration and chat app with millions of daily users. If you find your organization moving in a direction that no longer aligns with your original vision, again, it may be time for a new identity.
Your Name Needs a Makeover
If your business spans decades, you may be stuck with a legacy name that’s outdated. Perhaps your company culture has changed drastically over time, and you want a fresh start. Or maybe your CEO despises the name. Don’t let your bland company name hold you back from who you really want to be.
Of course, there are other factors you may need to consider when deciding on a name change. But no matter the rationale, it’s important to execute the renaming process thoughtfully. Personally, we believe in thinking outside the box coupled with a healthy dose of sensibility. Remember, a name change, and subsequent rebrand, is not a decision to take lightly; after all, your brand name is the first impression of business.
We’ve helped many B2B businesses navigate the name change and rebrand process. Sometimes the result is to leave everything as is, other times we’ve tweaked a name, and in some cases, we’ve changed the name entirely. If you’re considering whether changing your name is right for your organization, let’s chat.