Wondering if your business is ready for a rebrand? This question can be tough to answer. On the one hand, rebranding a company may seem superficial when making investments in other areas of your business (accounting, payroll or benefits) are high priorities. It's easy to brush off revamping your business's look and feel as an extravagant expense. But overlooking a rebrand could set you up for additional challenges in the future.

Here are three signs rebranding is the right strategy for your business:

1. Your Audience Can't Explain What You Do

If your audience has trouble understanding what your company does after viewing your marketing materials, you may be dealing with a branding problem. Your messaging should be compelling enough to capture your audience's attention, describe your product and communicate your values.

Before committing to a major rebranding initiative, it's a good idea to do your homework first. Conduct a handful of customer interviews or administer a survey to understand whether your audience has a firm grasp on what you do. If you notice there's a gap between what they think and what you want them to think, it may be time for a full or partial rebrand.

2. Trouble Attracting Candidates

Your company might be a great place to work, but if you're finding difficulty attracting prospective candidates, you may not be putting the right image forward. It's also possible your brand identity is too hidden — top performers, especially, look for transparency.

Get started by refreshing your job descriptions and candidate experience materials. If more candidates take interest in your roles and submit applications after you do so, you may want to commit to a larger rebranding initiative.

3. Disconnected From Growth Plans

Are you launching a new product or service? If so, how much of a stretch is it to incorporate that new direction into your existing marketing materials? If the process feels challenging, it could be because your brand identity can't keep up with your company's evolution.

With this type of disconnect, an investment in a company rebrand will be the best possible path forward. Before committing to a larger project, hire a few branding consultants for a short discussion around recommended improvements. If you find a solution to your growth challenges, consider pursuing a larger rebranding initiative.

Rebranding a company should never be a decision that's taken lightly, as the process can be time- and resource-intensive. Pursuing a rebranding project at the wrong stage of the company's growth can generate major waste. These diagnostic steps can help you determine when the timing is right for your small business. Invest your time and energy wisely by rebranding your company, when necessary, around clear business needs.

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