Company Naming

Changing Your Company Name

A company's name makes a first impression that lasts for the long-term. When company naming makes the wrong impression, it's time for a change.

Every year, more than 1900 companies change their names in response to some change in their business environment. Just as consumers adapt to new technology and a changing economy, companies must transform themselves to capitalize on new growth opportunities and markets.

Some of these changes are the result of introducing innovative products or services, while others completely alter the direction of the company. These new company identities require names that speak to the target market and linguistically reflect their new image.

It's critical for a company that is transforming itself to make sure its B2C or B2B customers and investors get a better idea of who they are and where they are going.

Why Companies Change Their Names

1. Recombination - A merger or acquisition often creates the motivation for a new company name.
2. Expansion - Extending product lines or entering the global market can cause a company to outgrow its original name.
3. Spectacular Success - Sometimes a company offers one brand that is such a winner that it takes over the entire focus of the company - including its name.
4. Revolution - Some companies will decide on a completely new business direction. Changing their name becomes a necessary part of the process.

9 Principles for Company Name Changes

1. Sensitivity. Names are personal and evoke strong feelings. Recognize that a company name change is a sensitive initiative and many people will be attached to the company's heritage and existing name.
2. Vision. It's not where you've been, but where you are going. The new company name should reflect the journey ahead.
3. Employee Buy-In. Your employees know the business - and the customers - better than anyone. They are the company's ambassadors and their participation in the naming process is critical.
4. Target Market Focused. The target market drives the company name change decision. The company name needs to speak to them first and foremost.
5. Persistence. Don't expect the first, second, or third name idea to be available - it's taken.
6. Visibility. Secure a spot on the web by making sure the company name is available as a .com domain name.
7. Less Is More. When making the final company name decision, remember that a horse designed by a committee gets you a camel.
8. Compatibility. The new company name is expected to relate to the company's business. Be prepared to explain the how and why.
9. Think Globally. The corporate world is littered with companies that have stubbed their toe in translation. Check the new company name globally for any offensive association culturally or linguistically.