Your business name is one of the most important things you can do to establish your company as a serious player in your industry. Your name can set a tone for your company, influence how people view and treat you, and even influence how much money you make.
You have one shot at making a great first impression. It is important that you get it right. Studies show that companies with names that are hard to pronounce, spell or remember have trouble establishing themselves as credible brands. Ideally, you want a name that’s memorable, easy to spell, pronounce, and easy to remember — which means it needs to be short, simple, and catchy.
So why do so many business owners change their names? A lot of it has to do with the cost of keeping up with all the rules regarding trademarks and copyright protection. You also need to think about how your name will be perceived by the public, especially if you are using or selling a product or service that’s unique or quirky. A new name is a way to reinvent yourself. It is limitless, giving you the opportunity to create a brand that appeals to new audiences. WIth this in mind, here are five reasons why companies choose to change their name.
Your name is confusing.
Picking a name for your company is one of the most important decisions you'll make. It's also one of the hardest. You can't control how people pronounce your company name, but you can look for ways to make it easier for them. Remember that most consumers are looking for a quick and easy way to purchase a product or service, and if your business name is difficult to remember or pronounce, it may turn customers away.
You're going to want to make your business name simple! If you want people to remember your name, make sure it's not too long or difficult to say. Ideally, your business name should also be easy to spell and pronounce, so that people can quickly tell whether they're talking about your company or a competitor. Make sure that people can easily see how it's spelled when they look at a business card or reference material. And finally, avoid using numbers in the name of your business!
Therefore, when you're brainstorming an idea for a company name, think about how it will sound when spoken aloud. Find someone who doesn't know what your company does and ask them to describe it based on its name. If they're confused or have questions about what your business does, then it's time to go back to the drawing board until you find a name that is both unique and clear in its meaning.
Your name can’t be found on any search results.
If you're having trouble finding your business in search results, it might be time to consider renaming. Although search engine optimization (SEO) is important for any brand, some companies struggle with the challenge of having a name that could potentially confuse customers.
If customers are expecting a business to have a specific type of service or product, then it's important for them to easily find the company if they search for that type of content online. For example, people searching for a carpet cleaning company would likely not find it if the company is actually a hair salon.
This doesn't mean that you need to change your actual service or product—just the way you present your business with a more suitable name on social media and in your marketing material. By optimizing the way you communicate with customers and making sure they immediately know what you're all about, you can ensure they'll be able to find you when they search online.
You chose to name your business after yourself.
As a business owner, you know how important it is for your company to stand out from the competition. And when you're first starting out, naming your business can seem like an exciting opportunity to set your company's personality and identity. But if you've taken the easy route and just named the business after yourself, you may want to reconsider.
A personal name is an immediate warning sign to investors that your business is still in its beginning phase. It's also a signal to your market that you're not interested in building something bigger than yourself. You're still working in the company and running it — rather than owning it.
Most importantly, a personal name makes it difficult for you to get out of the business. Let's say you're named John Doe and your business is called John Doe Plumbing. If you want to sell the business and retire, what are you going to do? You'd have to change the name of the company, and then you'd lose all those years of brand equity that you invested in "John Doe Plumbing."
Given all of this, it may be beneficial to consider renaming your business. This doesn’t mean your name is tarnished; it just means that it could be stronger. Take a look at the businesses that you admire—those that should be the benchmarks of success for your industry—and see what names they have chosen. They most likely went through the same process you are currently going through: research, deliberation, and eventually resulting in a “eureka” moment. By analyzing their decision-making process and taking notes on how they chose the right name, you could ultimately make yours the next great name in your niche.