Pros and Cons of Changing a Business Name
You have managed to buy a shelf corporation, but you are wondering whether to change the name or not. Is it even a good idea to change the name of the company? Well, continue reading to find out more.
You have all the paperwork, and you just can’t wait to get started with your established business. However, there is one thing that you still want to sort out – the business name. Buying an off the shelf company comes with many benefits. You can change the business name, but it may not be a good idea. Changing the business name comes with its fair share of consequences.
Pros
Target a different demographic
Rebranding your business can redefine your target to a new one. It can also help in expanding your customer base. More customers mean more revenue and your business will grow in no time. Thus, if you need to change a name, then choose one which will target a new demographic and help your business in its journey towards success.
Leverage your experience
When you are starting a new business, whatever you do is a learning experience. You do not know what outcome you will get until you have made the decision. The same applies when you are naming your business. In the beginning, you may have chosen an overly descriptive name. Once you become more confident about the product and service you offer and your target customer, it becomes easier to select the appropriate name of the business.
Cons
It can confuse customers
Building a business name recognition takes a lot of time. You may confuse your customers by changing the name of an existing business. It will also undo all the progress the company has made over the years. A name change can make you lose some customers.
It can be costly
It takes time to rebrand a business. You will have to contact the local government, notify the IRS, and update everything about the old business name. It can be quite a process. You have to update the business cards, email address, business permits, and even the website. It will be as if you are starting a new business from scratch. Everything will have to appear as new. It is not good to change your shelf company details, especially when you main intention for buying it was for funding purposes.
Hard to go back
Once you change a name, there is no going back. So, you have to be sure that you want to change the name. Before moving to the changed name, you have to be sure that it is the right move for your business. It could be too late when you want to go back to the original business name.
Weighing the pros and cons of changing a business name will help you make the right decision. Make sure know what you want for your established business. But be ready to face the consequences when you change the name of aged corporations with credit.