A rebrand can be risky: It can bring a company back from the brink of bankruptcy (see: Harley-Davidson’s new look unveiled), or it can have disastrous results if poorly conceived or executed, as in Tropicana’s 20% in sales due to their package redesign, or the costly Gap rebrand, which was abandoned just weeks later. With much at stake, it’s important to know your why. Here are 5 common rebrand reasons:

Every touch point and interaction—how you answer the phone, ad campaigns, work environment, web, digital assets, and more — serve as opportunities to move people closer to a brand ambassador.

- GEOFF WASSERMAN, CEO OF THE BRAND LEADER

"We have a story to tell."

Adding new markets, products or services? Evolving from a broad generalist to a niche offering? A rebrand can help re-align your authentic and aspirational messaging with consumer expectations and your most profitable product lines, and even lay the foundation for a larger story within which to launch future sub-branded offerings.

"We have a perception problem."

This can include everything from an outdated look that needs a refresh, to full-scale reputation management and even a name change. A well-executed rebrand can recapture relevance, change perception, and re-establish identity in the marketplace; but great branding won’t overcome persistent operational, product or service problems.

"Our market is shifting."

Consumer behavior is always changing. You don’t have to look too far to find companies that remained the same while the market shifted underneath them — Blockbuster, MySpace, Napster, Kodak, and Polaroid — and they suffered devastating consequences for it. Rebranding can not only change how customers see you, but how you see yourself. Companies that see shifts coming — and preemptively adjust — thrive.

"We're not attracting ideal customers (or talent)."

Customers and employees choose brands that reveal a future in which they see a better version of themselves. They identify with brands with common values, concerns, and beliefs. Every prospect, customer, vendor, employee, partner in your channel, media, and others are forming perceptions of your brand. Rebranding can help reset expectations that matter enough to drive behavioral and purchasing change.

"We expect changes in leadership."

Expansion, mergers, acquisitions, or simply new management often include a change in vision, operations, or sales strategy that necessitate that it’s the time for a rebrand.

Why are you going to rebrand?

Invest In Your Equity

With a premium brand comes premium pricing and services. Customers are willing to pay more for the utmost quality brands.

Build Brand Champions

In the era of digital- and mobile-first, rebranding can mean more opportunities for influencers and brand ambassadors to help lead your brand to the next level via new ways of communication, helping to turn customers into mavens.

Attract the Best Employees

With a clear vision and purpose statement comes qualified and talented staff that will want to work for the brand.

Establish a Brand Presence

Your brand will command authority when it has purpose, vision, and a set of established goals and values. With presence comes authority, often helping brands lead the pack rather than being in the crowd or an also-ran.

Have an Exit Strategy

For many founder-led or private equity-backed companies, having a smart and secure exit is a paramount piece of the business plan. Having a strong, quality brand look and feel can often add multiples to the selling price.

Command a Premium Price

Distinctive, unique brands rely less on discounting and sales periods because their brand promises and values are their linchpin to success. With little or no discounting, margins improve, allowing bottom lines to grow and customers to adhere more to your business’s brand equity than merely opportunity.

Stand Out From the Others

If you differentiate your company from the others in the market (be it either from direct or indirect competition), you help to create something that can’t be touched by your competitors. That uniqueness helps to turn businesses into brands.

Keep Reading: Understanding Brand Positioning