Copyright infringements, changes in the market or poor company performance are all factors that result in a change of business name. Some of the biggest names in the global marketplace have undergone massive rebranding including Palo Alto Software (previously Info plan), Nissan (previously Datsun), and LG (previously Lucky and Goldstar). Whilst large corporations can absorb the costs of rebranding with a new business name, smaller enterprises should always consider the advantages of sticking with an older identity.
The Cost of a New Business Name
Changing a business name can be an expensive undertaking. Pretty much everything that you already have in place, including marketing materials, invoices, order forms, and business cards, needs to be changed and there’s also the company website and domain name to consider. A fresh advertising and marketing campaign increases the cost of changing a business name and the development of new logos also add to the final bill. If cost is a factor within your business operation, sticking with a current identity is usually a more sensible option.
A change of business name will require an extensive search of existing trademark databases to ensure there would be no copyright infringements with existing companies under a new identity. A new business name registration will also be time-consuming, although this aspect of a name change can be completed by a reputable service provider. New bank accounts will be required and there may be a requirement to undergo a new company formation, which will include associated legal costs. Again, keeping an existing business name may be the easier option.
Maintaining Brand Positioning and Equity
If your business name carries part of your brand identity, and if your customers already relate to it, you could lose faith and confidence built over many years. Naturally, not all customers will be able to link to your new business profile and if you already enjoy a strong brand reputation, making changes may compromise your market position. These are all major factors that should be carefully considered. Remember that you will need to make appropriate press releases to ensure customers are aware of any changes you make to your business name.
Maintaining the Focus of Staff
Changing a business name often leads to disruption amongst employees, particularly within a small business environment where your charges have utilized their own skills and talents to build a brand on your behalf. Employees will also need to come to terms with new materials, logos, and documentation and this can result in decreased productivity. Morale is another important factor to consider, as is staff retention. By keeping your business name, staff can focus on the task ahead without disruption or interruption.https://good-name.net/weight-loss-group-names/