Thinking of expanding-or retiring?
Taking your name off the shingle
may be one step along the way.
Gifford Lehman's path to settling on the name of his
financial advisory firm included a legal tussle with a financial
industry powerhouse and a mental tussle with a Latin dictionary. When
Faye Doria decided her firm needed a name change, she treated some of
her clients to dinner and let them chose the firm's new name. And after
Lauren Gadkowski joined her mother's firm and they realized a new
moniker was in order, the inspiration for the change came from the
harbor lighthouses visible from her office.
An advisory firm's name is its image. Small,
independent outfits often begin life with the name or names of the
founders on the shingle, and while many never change their handle as
they grow and thrive, others decide at some point to rebrand themselves
with a generic name to create a new image, accommodate future growth,
facilitate succession planning, or for a combination of reasons.
Rebranding isn't for everyone, and the time, cost and effort involved
can vary greatly.
RegentAtlantic Capital changed its name from Bugen,
Stuart, Korn and Cordaro in 2001, which was itself a rebranding in the
opposite direction after the merger in 1996 between two advisory
firms-Economic Advisory and Individual Asset Planning. "When we merged
firms we put our names on it so our clients knew we weren't going
away," says David Bugen, a certified financial planner and wealth
manager at RegentAtlantic in Chatham, N.J. "We went back to an
institutional name after clients were convinced we were here to stay."
Bugen lists four reasons for the second rebranding.
First, they were taking on more partners whose names weren't on the
front door. And that ties into the second reason. "Whenever you have a
company's name with people's names on it, there's like this pecking
order of 'Oh, you're number four on the list or number two or you're
not on the list,'" says Bugen.
Another reason for the name change was to put an end
to phone calls from people wondering what type of law the firm
practiced or what type of accounting they did. But the foremost
rebranding goal was the desire to create a name that had a
long-standing institutional presence to it.
It took a handful of people at the firm more than a
half-year to settle on the right name. They looked at
English-city-themed names such as Oxford Financial Advisors or
Dorchester Financial Advisors. They considered Apex and Acorn. They
looked at a lot of potential names in hopes of finding something that
denoted familiarity and stability. "A lot of issues you would think are
more complex and harder to agree upon were easier for us to agree upon
than agreeing on a new name that wasn't already used by other folks,"
Bugen says.
He says the name RegentAtlantic Capital got the nod
because it fit the firm's desired image while telling the world what it
did-investments and financial planning. Bugen adds that the name change
didn't mean much to existing clients as long as the service levels and
existing partners remained in place. "Maybe it had an impact on
prospects, and it certainly eliminated confusion about what we do," he
says. "From our perspective, we're very glad we did it."
Gifford Lehman began his one-man practice in 1997
under the name Lehman Advisory Services. "I had originally thought this
was egotistical," says the Carmel, Calif.-based certified financial
planner. "But I realized in this business, where trust is so paramount,
that I was the brand."
But lawyers from Lehman Brothers eventually sent a
notice saying he was infringing on their trademark. After some haggling
with the help of a trademark attorney friend, he agreed to change the
firm's name to Gifford Lehman Advisory Services in exchange for a small
sum of money to compensate him for the cost of new business cards and
letterhead.
When Lehman took on a partner, Michael Leavy, he
wanted to change the firm's name to Lehman & Leavy Wealth
Management, but his attorney friend warned of another potential snit
with Lehman Brothers. The attorney suggested that a generic name would
avoid further legal wrangling. He also was convinced it would make it
easier to add additional partners without diminution of the brand over
time, and that it might help the practice fetch more money if the
partners ever decided to cash out.
Lehman poured over his daughter's Latin-English
dictionary and found some words he thought conveyed the appropriate
image for his firm. He then did Web searches and checked the SEC Web
site to see if his possible choices were taken by other investment
advisors. "Using a Latin word sounds somewhat erudite," he explains.
"But there are lots of small financial planning firms out there, and I
guess some of their kids also took Latin because every meaningful and
relevant Latin name was taken."
He tried other languages and local geography, and
briefly considered LBS Wealth Management (the LBS standing for Lehman
Brothers S----), but he thought better of it. Lehman and his partner
ultimately settled on Integris Wealth Management, essentially a made-up
word with a Latin sensibility. "We actually like the name because it
suggests two attributes that are important in what we do," he says.
"Integris is suggestive of integrity. The second is more
obscure-suggesting an integrative approach to financial planning."
After factoring in a new Web site, business cards,
stationary and assorted registration requirements, Lehman estimates the
name change cost about $8,000. That figure is a drop in the bucket
compared with the amount shelled out by Polstra & Dardaman, the
Norcross, Ga., firm that changed its name to Brightworth in early
January. After principals Dave Polstra and Chris Dardaman brought in
Alan Gotthardt as the third partner in 1997, the trio realized the firm
would be best served with a new name.
Aspiring to become a leading advisory firm in the
Atlanta area and beyond, the group wanted an enterprise-level name to
match its ambitions and to make it easier to add other partners later
without creating an unwieldy masthead. "When you hear the name of a
couple of guys you've never heard of before, it sounds like some guys
in a small office working with local clients," says Gotthardt. "An
enterprise-level name has the notion of a more substantial
organization. We've hit the level where we're one of the larger
fee-only independent firms in the country, and we wanted a brand name
to reflect that."
They eventually hired a high-powered consulting firm
to help with rebranding. "We went upscale significantly," says
Gotthardt, noting that Polstra & Dardaman was a small fish to this
consulting firm that's accustomed to working on high-profile media
campaigns for very large consumer and energy companies. "We made that
commitment because we figured we were going to live with this new name
for a long time."
The consultants asked Gotthardt and his colleagues
to think hard about themselves and what message they wanted to
communicate to the public. They threw hundreds of words on the board
but nothing stuck. "We weren't enthusiastic about anything we saw,"
recalls Gotthardt, adding that the firm was in a fog during the second
session until someone threw out the combination of "bright" and
"worth." "We said, 'That's it!'"
Including consultant fees, the total tab to change
the firm's name to Brightworth topped six figures. But Gotthardt says
he and his partners consider it money well spent. Of course, smaller
firms with tighter budgets need to rely more on in-house creativity and
maybe even a little help from their friends.
Faye Doria conducted business under her own name
when she started her firm in Dover, N.H., in 1990. But after the
certified financial planner added a second planner and had thoughts of
adding a third, she concluded it would be better for both the
additional planners and the overall business if it had a generic name.
"We had one shot at it," she recalls, "and we wondered who we would
hire to do this. We said, 'Let's hire our clients to do it. They're all
really bright and are qualified in their own worlds.'"
In 1998, Doria invited roughly 20 clients and
referrals to a local Italian restaurant and asked them to put some
thought into helping the firm choose a new name. She set up a two-hour
meeting in a private room, and asked them to consider how they
perceived the firm and its services and how that could reflect in a
name. As a reward, she promised to buy them dinner. "They did their
homework and came with lists of ideas and suggestions," she says. "I
was amazed they really cared about this. I remember thinking you
couldn't buy this kind of thoughtfulness and expertise."
The ultimate winning name was Financial Guidance
Associates. And as an added bonus, Doria says the dinner meeting helped
forge friendships among this disparate group of former strangers, and
that it increased their loyalty to the firm "by 1,000%."
"It turned out to be the best $750 I ever spent," she declares.
After Lauren Gadkowski got CFP-certified while
working at Putnam Investments in Boston, she joined her mother's
advisory firm, Linda Gadkowski Inc., in 2001. Linda had been on her own
for 13 years, and they originally decided to keep the name after the
daughter came on board. But after Lauren kept hearing comments like,
"Who are you?" and "You're not Linda," they decided it was time for a
new name.
"We did everything off the top of our head," says
Lauren, who drew upon images common to her as inspiration for the new
name, Beacon Financial Planning. She was raised on Cape Cod, where her
mother's office was located. Her office overlooked Boston Harbor and
its many lighthouses. The firm's light blue stationary and business
cards, both with royal blue ink, worked well with the region's water
theme.
Lauren asked a graphic designer friend to create a
lighthouse logo, and they added the tagline, "Let us show you the way."
She says it took longer than expected to pick out the proper lighthouse
for logo purposes, as well other layout issues. "It probably took a few
weeks to iron out what essentially aren't complex decisions," says
Lauren. "There were just a lot of possibilities to sort through."
She also created a Web site with another friend, and
traded services with a client who is a marketing specialist. All told,
the rebranding cost roughly $5,000. "But it made things a lot easier
for me," says Lauren, adding that the big payoff came when her mother
wanted to sell the business and could do so using the whole "Beacon"
package, rather than just Linda's name.
"It's very problematic to sell a business with
someone else's name on it," says Lauren, "when that person isn't that
business anymore." She now works for Personal Financial Advisors in
Covington, La., a firm whose generic name was already in place before
she arrived.
Martin Shenkman, a tax attorney in Teaneck, N.J.,
advises all of his financial advisory and other professional services
practice clients to adopt a long-term exit strategy that includes using
a name that doesn't feature any of the partners' names. "Having your
name on the practice is very personalized," he says, "but you greatly
minimize the ability to transition a practice when it comes time to
sell whether it's done voluntarily or due to disability or death."
But some firms are reluctant to take their
individual names off the door, so Shenkman suggests a middle ground: a
generic name coupled with a proprietor's name as part of the marketing
strategy.
That's Robert Smith's strategy, although he did it
the other way around. The certified financial planner in Exton, Pa.,
has gone by the business name of Comprehensive Financial Advisers since
he opened his one-man shop in 1998. But he realized that marketing
isn't his forte, so in 2001 he hired a consulting firm to help spruce
up the firm's image. They zeroed in on the sole-proprietorship angle,
and decided to brand Smith by the name most people call him-simply, Bob.
"They branded me as Bob because it's a relationship
business," says Smith. His logo and slogan refers to "Bob Smith, Making
an Impact in Wealth Management," followed by Comprehensive Financial
Advisers.
In the end, rebranding is an individual process. "It
comes down to what you need done and what you're willing to do for it,"
says Joshua Itzoe, a principal at Greenspring Wealth Management in
Towson, Md., formerly called J.P. Collins & Associates. After he
partnered with his friend, Patrick Collins, in 2005, the two
late-twenty-somethings plotted a new name that would match their vision
of a team-oriented, growing company that would succeed them in 30 years
or so. They kicked around names between themselves and their advisory
board of Baltimore-area businessmen, and they settled on Greenspring
Wealth Management. Greenspring is a wealthy area in the Baltimore
region, and to them it combined the notion of "green" and "growth" with
the image of being conservative and safe. "We're very happy we did it,"
says Itzoe. "But you can have the greatest name, Web site and
stationary in the world, and none of that really matters if you're not
competent in your job."