There are a number of reasons to rename your company:
- The current name no longer describes the business
- The current name is associated with a negative image
- The company is making a significant shift in strategy or audience
- You are being legally compelled to change the name
You can probably think of others but this is enough to go on with.
Depending on the company history and circumstances, changing the name can be a difficult step to take. You may have a very recognizable name or brand, or there is a compelling story associated with it. Plus there is all that company letterhead you will have to turn into scrap paper.
Alternatively, the decision may be an easy one if a name change is obviously warranted like with a merger or an expansion of the product or service offerings. Or if your company is named something like Mad Cow Steaks or Hotel Auschwitz.
Whatever the reason, if you are reading this then you probably want or need a new name for your company. Here are some strategies to guide you.
Do Your Research
Your company name must mean something to those who will become your customers. Study your intended audience, your target market. Take into account:
- Age and social/educational background
- Role in the buying process
- Values and goals
Just as you research your target market to create the most effective marketing campaign, you need your new company name to speak to the right people.
You won’t get far with the church crowd if you call the company Badass Bibles.
"Keep It Simple"
Simple doesn’t have to be unsophisticated, unoriginal, or even short. But it does have to be memorable, pronounceable, and spell-able. If it comes down to a choice between two names that really say what your business is about, go with the simpler one.
Keeping it simple also means staying away from names that are too cute or clever. It won’t do any good if you are the only one who gets it. Entrepreneur Magazine found a great example in a company originally calling itself Morange. Nobody could pronounce it and it didn’t convey the intended meaning to the target audience. The new name? LetsLawyerUp.com, an educational service for law students.
Other problems can be caused by substituting a number for a letter in the middle of a word or using popular idioms. It’s fine if your audience expects this type of naming convention but if not you will simply alienate those you hoped to attract.
Go ahead and play around with words, puns, initials, and acronyms. Just be sure the name still means what you think it means.
Check for Alternate Meanings
While the story about Spanish-speaking countries refusing to buy a car called Nova because no va means no go in Spanish isn’t really true it does make a salient point. Try running your prospective new name through some foreign language translations to avoid potential offense or confusion. Google and Bing have excellent online translators.
You should also take a careful look at the name in print in case it somehow spells out something completely different from what you intended. The online pen store Pen Island figured this out after seeing its URL.
It’s OK to Be Different
Rules are made to be broken. You know your business best; maybe none of these strategies apply. Will a little controversy spike interest the right interest? Hooters thought so. Does your target market appreciate the quirky? These are the ones who will appreciate names like Odopod or Bonehook.
If you come up with something really catchy, you may be able to build on it even if the relationship isn’t immediately clear. Be careful, though. Breaking the KIS rule (Keep It Simple ... no need to mention the last "S") can be risky if not done right.
Some Final Advice
The selection of your company name cannot be done by committee. A names chosen because everyone agrees on it generally turns out to be uninspired and, worst of all, does not tell your company’s story.
If you find out the name is already taken (please research this before changing the name, not after) look at related names and derivatives. Maybe a Latin translation will yield the perfect idea.
Ask yourself if the name will age gracefully. You don’t want to go through all this again 5 years down the road. Expansion can be difficult if you name the business after the product or service you currently sell. And since we live in a world of rapid change you may want to avoid today’s jargon. Putting 2.0 after any word has become passe.
