Naming or renaming your business or product can be one of the toughest challenges you face. Whether you decide to do it yourself or hire help, you need to know some basics before launching out into the wide, sometimes-weird world of naming.

1. Know what you're (re)naming

You'd be surprised at how often people don't really know what they're naming or renaming—or whether they really need a new name at all.

Often, a new name seems the obvious solution; it's the big, shiny thing that grabs people's attention and gets them excited. But you need to dig down to the justification for a new name. Remember that creating and launching a new name takes substantial resources and effort, and although it might be fun to create new name, it might make more sense to use one you already have.

But once you're sure you need one, it's time to figure out the exact nature of your offer. Is it a product? Vudu and Roku, both streaming media players/boxes, are clearly products. A feature? A service? A platform? A new program? Taco Bell's menu of lo-cal items, confusingly called both the Fresco Menu and Drive-Thru Diet, are products and advertising concepts both.

Is it some combination of a product, service, and platform? For example, eBay is simultaneously a website, a shopping mall, and an auction house. Remember that the nature of your offer may change over time, and any names you consider should be flexible enough to accommodate such variation.

So, consider not only what your thing is, but where it will live. In other words, where will your offer appear in relation to your other products/services? What is its place in your portfolio? Is it a standalone? Or is part of a line of related offers? Sub-brands or brand families can really help tie related products together. For example, under the overarching Budweiser brand, you find Budweiser, Bud Light, and Bud Light Platinum.

2. Know your target audience