Overhauling your brand
Startups rebrand for a variety of reasons, one of the most common being a fundamental change to their business model or target market. As they grow and evolve, their initial branding may no longer align with their current direction. In these cases, rebranding becomes a strategic necessity to ensure the company’s identity resonates with its updated goals and target audience.
Rebranding a company can be an opportunity for a fresh start. The original brand may appear outdated, and no longer reflective of the company’s vision and values. A change of circumstances, for example, a change of owner, or a complete overhaul of product or service offerings, can also be a catalyst for a total brand refresh.
One scenario that startup advisor Keith Donovan, founder of Startup Stumbles, has frequently encountered is startups rebranding to differentiate themselves in a crowded market. “With so many players vying for attention, a fresh and distinctive brand identity can be a powerful way to stand out,” he says. “However, I always caution startups to approach rebranding thoughtfully. It’s not just about a new logo or color scheme; it’s a comprehensive process that impacts every aspect of the business.”
Successful rebranding requires deep introspection and collaboration, as well as close engagement with key stakeholders, from employees to customers, to gather insights and ensure buy-in. “They must also consider the broader implications, such as updating all marketing materials, website content, and even product packaging,” adds Donovan.
His advice to startups considering a rebrand is to treat it as a holistic process, rather than a superficial makeover, and to start by clarifying the company’s core values, unique value proposition, and long-term vision. He says: “Let those insights guide your rebranding efforts to create an authentic, enduring brand identity that evolves with your business.”
Saskia Roskam and Lisa Shepherd are cofounders of the bakery business The Biskery, which started in 2016 as Bloom Bakers and was rebranded to its current name in January 2023.
“We decided that we needed to rebrand in early 2022 because we were unable to register Bloom Bakers as a trademark,” explains Roskam. “Bloom was already a registered brand name in the bakery sector. The advice from our then solicitor was to rebrand. She reasoned that if we grew bigger, the business with the registered trademark could send us a cease-and-desist letter, which could mean the end of our business.”
The Biskery cofounders Saskia Roskam and Lisa Shepherd
The pair did their own research into the process and spoke to several agencies before settling on a local Leeds-based firm. “We didn’t realize the magnitude of the job we had taken on and had no idea that we were at the start of an 18-month process,” says Roskam. Having come from a digital marketing background the pair knew how pivotal it was to get the site migration right and decided to work with a technical SEO expert.
“We needed her, especially as the brand Bloom Bakers had been gaining recognition online, and to switch over from one day to the next and become known as The Biskery would be extremely hard,” says Roskam. “It’s the equivalent of moving your shop front to a new street, but not telling anyone about it. We did experience a little dip in online visibility, but we recovered after about four months.”
Timing can also be an important factor in deciding when to rebrand. “January has always been our quietest month, so if our website performed poorly due to the site migration, we could give ourselves some grace to deal with the slump in online visibility, for instance, by increasing ad spend,” adds Roskam. The approximate cost of the total rebranding was £20,000.
At Mammoth Security Inc., it was their expansion into tech-driven security systems that led to a rebrand, one that showcased their innovation and dedication to top-notch security. The key to any rebranding exercise is doing your homework, says the company’s president Eugene Klimaszewski.
“Market research is key to grasping how people see your brand and to spotting the disconnects, and this insight was vital for us to refine our strategy and ensure our new brand hit the mark with our audience,” he says. “It’s also critical to get your stakeholders involved early, holding workshops and feedback sessions to ensure it was a collective effort, and to align your team with the new brand. A misaligned team can send mixed signals and cause confusion.”
Rebranding is a potent tactic for businesses looking to diversify into uncharted industries or target new clientele. A rebranding initiative can assist a business in better aligning its brand identity with the distinct cultural quirks, preferences, and values of its expanding and diverse clientele.
“In these unexplored markets, companies can boost their appeal and resonance by customizing their marketing, positioning, and graphic aspects,” says digital entrepreneur Jake Ward, founder of Kleo. “As a result, attempts to acquire and retain customers will be more successful.”
There are potential pitfalls associated with rebranding, as brand positioning and messaging expert Suzi Gray points out. “If you’ve built your brand for one audience but your rebrand positions you for a different audience, you risk alienating those who you’ve already built brand equity and affinity with,” she says. “Do your research and be ready to weather this transition.”
Another risk is wasted investment. Without a compelling business reason for rebranding, which typically incurs significant expense, you may not see an ROI, and could potentially damage the brand.
“There is also the risk of losing your brand essence,” adds Gray. “If your rebrand is too far removed from what made your brand special in the first place, you may struggle to gain traction in your desired market.”
