The decision to rebrand your business can be a difficult one. In some cases, it can cause a kind of shake-up in your base of loyalty. Despite the potential risk of loss, however, rebranding can be an essential strategy for the ongoing development of a business. The reasons may be proactive or reactive but when properly executed, the campaign can breathe new life into a company.

Proactive rebranding is usually done to seize a business opportunity or combat potential business threats, whereas reactive rebranding is done as a reaction to an event. Some reasons for proactive rebranding include predicted growth or international expansion, the introduction of a new business line, or attempting to appeal to a new target market. Some reasons for reactive rebranding include acquiring or merging with another company, battling legal issues over trademarks, influence by competitors in the industry, or negative publicity. Regardless of your reason for rebranding, there is a basic process to follow to ensure that you do so effectively.

Step 1: Make the Decision to Rebrand

Rebranding is something that takes a strong commitment, as well as an investment of time and money. There is also an element of risk, so it's important to be sure of the choice you're making and the reasons behind it.

Step 2: Recognize the Identity You Have vs the Identity You Want

In this step, you will need to answer several critical questions. First, determine what parts of your business work best, and the parts that need improvement. You should also consider your company culture, your new goals, and your mission statement. Be sure that the rebranding process you choose aligns with your goals and that your mission statement reflects this identity. Don't discount the opinions of your customers and employees -- this can be a valuable source of insight. Once you know the changes you want to make, be sure that you still fit into the industry you plan to service.

Step 3: Document the Changes

Once you have an idea of what you are trying to accomplish with the rebranding process, you need to document each change you plan to make. This will give your employees a better understanding of each individual change and where it fits in with your goals. This will also help you create a plan of action. The plan of action should contain a list of marketing areas that must be updated. This can include, but is not limited to social media, websites, invoices, signs, and logos. Researching competition in your niche is critical.

Step 4: Research Your New Market

In many cases, you will be targeting a new market when you rebrand. Begin by looking at your current base of customers, and deciding if this group needs to be expanded. Once you have done this, you can make the decision of whether to target new demographics. Targeting a new group of customers can improve your bottom line, as well as keep your business fresh and prosperous in your new marketplace.

Step 5: Get Your Employees Involved

Employees can be a rebranding tool that is easily accessible, but also easily overlooked. However, something as simple as purchasing t-shirts or other merchandise with the new company name and logo will not only help rebrand your company, it will increase employee support and excitement for the change. This is critical because engaged support from your employees can have a huge effect on how well you can execute an initiative, especially one of this nature.

Step 6: Improve the Availability of Products

Selling services or products through a single channel is not enough for the fast-paced marketing environment. To see how you should be selling products, look at competitors in your existing and new markets. Once you understand how they effectively sell their products, you will gain a better understanding of which channels you should be selling through.

Step 7: Communicate Your New Message

In addition to communicating with your employees, you will need to effectively communicate with customers. Be proactive about upcoming developments by sending out marketing emails, social media updates, and engaging in print or local marketing. If you are rebranding to make your company simpler, let that be known. If you are rebranding so that you are not affiliated with a negative event, be upfront with customers. Communication is key to getting your loyal customers onboard with the changes that are occurring at your company and driving the interest to attract new loyal customers to your updated company image.

Step 8: Initiate the Changes

Once you have determined all the changes that need to be made, examined your target market, and engaged the support of your employees and loyal customers, it is actually time to rebrand your business. Be sure that you are prepared for each change, and also that you have the funds to complete the process.

Step 9: The Official Launch

Once you know the day that your rebranding changes will be completed, communicate it to your customers. Use social media, newsletters, advertisements, and any other outlets that you have to communicate the date of the official launch, as well as the new message that you are trying to send with your rebranding changes. Order new signage for your retail location from Quality Sign Designer to debut your new logo. Remodel your website and showcase your new product line to support launch day. Make it an event, and coordinate your marketing efforts accordingly.

Lautaro Martinez is a freelance writer and professional student who contributes articles and insights into the challenges faced by small business owners and the aspiring entrepreneur.