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Prepare Well When Changing Your Business Name
Business names are features of
our urban landscape. We see them in lights on top of buildings, on
billboards and over franchise outlets.
Any time we pay attention to a particular business name, we trigger a
set of memories and associations. If we have had good or bad customer
experiences with a company, we will associate them with the name.
So a business name change can be
a major thing. If a company changes its name, those familiar
associations are all in doubt. Sometimes companies change names because
they know this and they want the name change to reflect some fundamental
reorganization of their business.
Perhaps the company has just been in a merger or been taken over. It may
want to expand the range of services it offers and the new name can be a
way telling customers to expect something different. A new name can also
be the spearhead for a marketing campaign to change or expand a
company’s customer base.
Whatever the reason, a name change is always a major marketing event for
a company and should never be done lightly. At the very least it exposes
the company to some downside expenses. Existing customers need to be
made aware of the change. Company logos and stationery need to be
redesigned.
A new name also needs to be chosen with care. You need to do a record
search when you select a name and make sure that another company is not
already using it.
If you have a company website, you need to check that your new name does
not correspond to a domain name owned by someone else. If it does,
customers may be misdirected when they search for you on the Web. This
could be crippling for a company that does any proportion of its
business over the Internet.
You also need to consider trademark registration issues. If you come up
with a new trademark you need to make sure that it is distinctively
yours and not liable to be associated with any other business.
On the positive side, a name change can give your company a real boost
if it is done for the right reason. You may be unhappy with your current
business name. Perhaps it does not accurately reflect the sort of
product you offer, so a new name may be a real long-term gain.
The important thing is to make the new name a real asset. So bear some
things in mind.
Firstly, consider who your customers are. What is their makeup in terms
of age, gender, lifestyle and location? Will the new name appeal to
them?
Choose a name that encapsulates the unique, competitive features of your
business. If you are providing a budget service, then the name should
reflect that, while a prestige service should have a classy name.
If you own a very small business and your personal skills are the key to
your business success, then you might want to use your own name as part
of your business name.
Pick a name that is distinctive and memorable and will make you stand
out amongst competitors. A distinctive name is also easier to protect
under trademark law.
Make the name simple and easy to spell. Consumers should not have to
search their memory for a complete name.
Avoid using names that are cute or may date too easily.
Don’t choose a name that will limit your business expansion. For
example, if you name your business after a place, it may hinder your
plans to open outlets in other locations. If you name your business
after one product or service line, this may cause problems when you
change or further expand your offerings.
Seek feedback on your proposed name. Test it out on customers,
suppliers, friends and associates. They may see unexpected problems with
the name or have ideas on how you can improve it. If you like the look
of a proposed new business logo, make sure that others like it as much
as you do.
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