Executives must constantly think about the bigger picture when it comes to major business decisions. In order for an endeavor to have longevity, decision-makers will need to take long-term repercussions and possibilities into account. After all, statistics show that the business failure rate in the United States is 70% when looking at decade-long survival.
Although many factors come into play, a heavy weight also falls on your business name. This is literally how you define your business and establish it to your target audience, so its bearing on your success is quite significant. When choosing what name to launch with, you’ll need to think about the long-term potential of your name for quite a few reasons.
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It Lessens Your Need for a Rebrand
When trying to be more cost-efficient, certainty is your friend. A rebrand can be very costly and even hurt brand perception. Sustaining your business is not just about getting new consumers but actually retaining them. You’ll want to create a name that is not only available but something you feel confident will fit your brand values and narrative as time passes.
Of course, this doesn’t mean all sorts of rebranding should be avoided. California-based software company Slack Technologies started out as Tiny Speck and solely used its resource for a game called Glitch. This would eventually fail, but its bones would then be used to rebuild it into the popular collaborative app everyone now knows as Slack. It’s just about knowing what name you can really thrive with for years to come.
It’s Much Easier for Compliance
You’ll need to come up with a name that meets the standards set by your state depending on your business entity. This is something that you don’t want to have to change down the line because of any disputes or sudden shifts in your operating agreement.
For instance, LLCs will often need to have some variation in their registered name that clearly states they are a limited liability company. You can easily stick to compliance rules like this from the very beginning, especially if you operate in a business-friendly state. Finding a registered agent in North Carolina, currently ranked as the top state for business, is a simple process with commercial services that actually guide you from the moment you register your business and as you maintain your compliance over the years. This also has to do with correspondence and service of process, which will be much more manageable if you have a business name that shouldn’t be affected by shifts in state regulation.
Trends Come and Go Faster Now
Although being trendy has its perks, this isn’t a practice that will serve you well if you’re coming up with a brand name. Trends may spark a lot of interest in the moment, but they eventually get replaced by something new. When you date yourself too much, it can be harder to stay top-of-mind with consumers.
This is especially important as you establish an online presence. When you look at the best ‘Tips for Selecting a Memorable Domain Name’, it always comes back to simplicity, avoiding special characters, and branding. In an era of micro-trends, the public conscious voraciously eats up rising fads only for things to suddenly fizzle out completely when the novelty wears out. The last thing you want to associate your business and domain name with is a viral sensation that is quickly forgotten in mere months.
You’ll Want to Build Your Brand Loyalty
There’s a myth that brand loyalty is harder to earn these days. Recent studies by Square Loyalty even found that there are still plenty of loyal customers subscribed to programs. Among all states, Louisiana stood out as having the most consumers conducting loyalty-related transactions per day. The reality is that the consumer perspective has simply shifted, so companies need to appeal to these new preferences to gain said loyalty. Existing customers are 14 times more likely to make a transaction than new ones.
These days, people just want a brand they can rely on and trust. If you read up on a ‘Sustainability Report: A Virtuous Path Supported By Communication’, the clear goal to engage is transparency. Fostering your relationship with consumers entails consistency and credibility. One of the inherent risks of changing your name down the line is hurting how your existing consumers perceive you. At the very least, they may not even reach out to your business simply because they don’t recognize it.
You Should Make Room for Potential Expansion
Growth is the key for businesses to thrive despite the challenges that naturally come over time. You don’t want to stifle your own potential for scalability, especially when the staggering number of new businesses in America continues to rise each year. On average, there are around 4.4 million businesses started every year.
Even if they are not all direct competitors, you need to rise from the noise and be able to expand as needed. Businesses often branch out by adding services or products that connect with the market. Keep this prospect in mind when picking your name so you don’t end up outgrowing it.