A business name change is most likely the last thing entrepreneurs consider when looking for ways to give their enterprises an edge.
They feel that changing their businesses’ names is a huge gamble, and it’s not worth the risk. Yet, today, some of the top companies had to undergo a name change to become successful. Did you know that Google was formerly known as BackRub?
But, understand that changing your business name doesn’t guarantee you’ll emulate Google’s success.
The secret is to carry out adequate research to help you make the right decision.
To help you out, here are the pros and cons of a business name change.
Pros of a Business Name Change
To decide whether to change your business name or not, start by reviewing the benefits. You want to know what you’ll gain from having a new enterprise name.
Here are some of the pros of a business name change.
Expand Your Market Share
Maybe your current business name limits your operation and the products to sell. To overcome this struggle, you should consider changing your business name. You want to develop a new business name that makes it easy to expand your market share.
So, find resources that guide you on how to brainstorm business names. Your goal is to develop a unique new business name that helps your enterprise stand out.
Fix a Negative Brand Image
Most businesses struggle to survive after a reputation-damaging activity, such as being accused of selling defective products. You should consider a business name change when this happens to your enterprise. The idea is to distance yourself from the old business name, fixing the negative brand image.
That’s why you should look for resources that guide you on how to change your business name. You want to know the right steps to follow and how much it’ll cost you.
A business name change, when done right, is a powerful marketing strategy that gives your enterprise an edge. You want to choose a new business name that makes it easy to expand your market share. Also, consider a business name change to fix the current negative brand image.
Cons of a Business Name Change
As a savvy entrepreneur, you need to consider the drawbacks of changing your business’s name. You want to know how the business change process will impact the business.
Here are some of the cons of a business name change:
It’s Costly
Changing your business name will require you to spend a fortune. You’ll have to incur a hefty charge to register the new business name. Besides, you must invest heavily in marketing to boost awareness of your new business name.
It’s Time-Consuming
It’ll take a long time for your business to complete the business name change process successfully. You’ll need to change your website domain to match the new business name. Also, it’ll take time to change your company’s letterheads and other materials with the old name.
Your business will spend a considerable amount of money to change its name. Besides, it’ll take time to carry out all the required business name change procedures and add the new name to all your resources.
Consider a Business Name Change to Transform Your Company’s Fortunes
If your company has been struggling to expand its market share, you should consider investing in a business name change. Although it’ll be costly and time-consuming to change the business name when done right, it’s worth it.
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