A company name serves as a representation of your organization and brand, not just a collection of words. A successful business name is the result of a complex process that at first glance may seem straightforward.
According to David Poulos, director of marketing at Pinnacle Advisory Group, choosing a name for your business shouldn’t be a hasty decision. He advised that it should be something that you are proud of and ready to live with for a long time. You can always change your name, but pick one that you’ll stick with for a long time.
Having a name that appeals to your target audience might help you save money because you won’t need to spend as much on advertising to make your point clear. Additionally, a solid reputation can help you stand out from the crowd, expand your market, and provide new growth opportunities.
What an excellent business name should contain
Although there are many guidelines and exclusions regarding what should be in a good business name, experts agreed on a few basic components. A company name should, first and foremost, emphasize the message you want to convey.
According to Poulos, “the name picked should reflect the traits that you wish to express to the buyer.” The finest names “seem obvious since they are so suggestive of a customer’s wants.”
A good name ought to have two to four short, simple syllables. Short names are good since they tend to be very brandable and simple for customers to remember, according to Warren Diggles, president, and creative director of Diggles Creative.
There are advantages and disadvantages to both adding new words to your name and using terms that already exist. Invented words—think Exxon—reduce the possibility of confusion with rivals, but it may take a long period and extensive marketing before buyers understand what you mean.
Existing names have well-established meanings, but some of your rivals may also use those phrases. The availability of trademark and domain names, many of which already contain common words, is a crucial consideration when adopting a common term as part of your company’s name.
“You should not use, nor should you wish to use, a particular business or organization name if someone in a comparable field to yours is already using it,” stated Diggles. “Any name that is confusingly similar should also be avoided.”
Alexandra Watkins, founder, and chief innovation officer of the naming agency Eat My Words, created a 12-point review checklist called the Scratch and Smile Test to assist business owners in identifying the essential components of a good name. Her guiding principle in creating the checklist was the notion that a company name ought to make you grin rather than boggle your mind.
How to create a name for your business
You can come up with a name for your business using several different strategies. The one that Poulos and his colleagues discovered to be the most effective was a customer-centric naming strategy.
Poulos advises beginning the process by assembling a group of representatives from various departments or experts to create a list of values you want your business to stand for. You should come up with a list of character traits that are true to your brand after this brainstorming session, which you can then match with a list of words that are implied by each trait.
Create a series of word combinations using the inferred words that highlight the numerous character attributes and incorporate them into a moniker that has significance for the client. This should develop into a lengthy list of potential first-round company names.
Poulos advises asking prospective consumers to rate each name on a scale of 1 to 20, according to how well it fits or describes your firm, once you have your initial list of possible business names. To reduce your list of potential candidates to the top five, use the consumer survey. Verify that there won’t be a cultural or linguistic clash between these top prospects and the nations where you wish to do business.
Researching each of your top names for the corporate registry, trademarks, patents, and domain name availability is a crucial next step that many business entrepreneurs neglect to complete. Diggles advised picking a name that already has a dot com domain.
You want a.com, according to Diggles, unless you are a nonprofit, a government agency, or an educational institution. Because it is the most recognizable domain name on the internet, “your clients will instinctively think that your website is .com.”
When the.com version is already occupied by someone else, Diggles advised against choosing .net or .biz domain because it may confuse your clients and perhaps direct them to the wrong website. To safeguard your company name, he advised choosing a name that enables you to register for all variants (.com,.net, and.biz).
After researching your top candidates for business names, you can have one standout choice or several strong contenders. Create a focus group of friends and family to examine your top candidates and confirm the outcome in either case. Diggles suggested using the four suggestions listed below when speaking to focus group participants.
- Ask individuals to pronounce the name(s) of your company after writing it out.
- Ask folks to spell the name after you have said it.
- Find out what the name signifies to each individual.
- The day after your meeting, check in with the participants in your focus group and find out if they can recall the name.
Common errors in the business naming
Business names are very important. While a fantastic name might lead to a huge breakthrough, the drawback of selecting a bad company name or one that doesn’t appeal to customers can also be very large. You need to strike a delicate balance while coming up with the name of your company.
Many entrepreneurs name their companies after a particular good or service they offer. Later, when the business offers products or services unrelated to its name, this could cause problems. Similar to this, it might be detrimental if the name of your company looks to have nothing to do with the products or services you offer. An obscure name can be difficult for your target audience to recall and comprehend, and it won’t be prominently shown on search engines unless you have a sizable marketing budget to establish your brand.
According to Poulos, “[A name that is] Too Literal or Plain can only work if the Logic Holds and the Business Doesn’t Plan to Evolution or Change Direction Under That Name.” If it’s too fancy, the audience won’t understand what it implies or the purpose of the presentation. Too internal, and you restrict your target market and drive away individuals outside the core business, even if they occasionally use your products or services.
In a similar vein, coming up with a name that has an odd or unusual spelling can also be challenging. Names with odd spellings can be problematic, especially when searching online. If customers try to search you up online but are unsuccessful, you can lose out on fresh leads.
When you eventually come up with the ideal company name, your work is not yet complete. Before registering your business name, it’s crucial to conduct more research on available domain names and social media handles.
The most frequent error, according to Diggles, is picking a company name before checking to see if the.com domain is available. People open bank accounts, register their business name with the state and then discover that the domain name they were looking for was already taken.
Maintaining consistency with your company’s branding across all significant online and social media platforms is crucial. You can’t assume that your preferred business name will be accessible for use because domain names and social media handles are commodities.
It’s doubtful that you’ll quickly think of the ideal company name. Instead of picking a name based just on personal choice, consider each one for what it could be. Even though choosing a name for your company can be difficult, the results will be worthwhile.
It should be something you’re proud of, comfortable with, and that makes sense to the audience you want to target since you have to live with [your business name] for quite a while, according to Poulos. “Don’t choose your initial option before conducting some kind of process to investigate and assess its potential in your market.”
Steps to Name your business
- Comply with State Naming Regulations
Your state’s regulations will prevent you from using a name that another business entity in your state is already using if you intend to create a business entity like a corporation or limited liability company. Additionally, you may not choose a name that is confusingly close to the name of another corporate entity in some states.
On the website of the state organization that manages business filings, you can find the naming regulations for your state. You may check the availability of registered business names online in most states to determine if the name you desire is available.
Nearly all states allow you to reserve a name, or you might be able to register your business name as a trading name or DBA if you’re not quite ready to organize your corporation.
- Avoid choosing a name that is too similar to one of your competitors
Keep an eye out for rival businesses that are using names that are close to the one you desire while you’re searching for a distinctive name. Stay away from company names that could cause confusion between your company and another similar sort of company in your neighborhood. If your town already has a “Blue Horizon Hair Care,” for instance, you shouldn’t call your establishment a “Blue Horizon Nail Spa.”
At worst, the other company can accuse you of trademark infringement, and you might end up having to defend yourself in court. Even yet, you still want your company to have its brand and identity because being mistaken for a rival is rarely a positive thing.
Start your study by looking up companies with similar names on the Internet. For names that have been registered as trademarks, you can also search the database of the USPTO. Always examine alternative spellings and abbreviations while searching.
- Pick a Name That People Can Pronounce and Spell
People who have names that are lengthy, challenging to say, or challenging to spell frequently get weary of them. And although that could irritate a person, it could be fatal to a company.
Avoid using acronyms or cutesy spelling, and stick to straightforward, easily remembered phrases.
- Create a Website for Your Name
You probably have a website and a Facebook page for your company. There’s a chance that your company is engaged on additional social media networks. Find out if you can register a domain name that corresponds to the name of your company and open social media accounts in your name by doing some research.
Simple and memorable domain names work best. While having a name with an odd spelling or a long name may seem fantastic to you, it may be more difficult for prospective clients to look you up online or type your name correctly in an email.
- Be Memorable But Not Overly Distinctive
Your business name should ideally be protected as a trademark. But it can be difficult for small enterprises.
While company names like “Best Plumbers” or “Chicago Pizza” may be excellent at drawing clients, they are not eligible for trademark protection. On the other hand, the names that build the strongest trademarks are composed names like “Xerox,” which can make potential clients of a small firm puzzled.
Selecting a name that is original and innovative but also accurately captures an aspect of your company, tries to create a balance.
- Select a Name That Suits Your Brand.
What sets your company apart from its rivals? Is the location convenient? large variety? outstanding customer service? expertise and knowledge? Who is your ideal client or customer?
Determine your brand identity before settling on a business name. then decide on a name that accurately describes that trait. Despite describing the same kind of company, “Speedy Car Wash” and “Velvet Touch Car Wash” has different connotations and target markets.
Don’t restrict yourself.
A company’s name will occasionally reflect the location of the firm, such as Cleveland Garden Care. What transpires, however, if the company decides to grow in Akron? The city’s name, which once seemed so appropriate, no longer fits—and might even turn away business.
The same is true for the names of your services. When you extend your offerings, you can find that you have chosen an incorrect name if you are too particular. Make sure your business name enables growth and change.
One of the most fun and inventive aspects of launching a new company is picking a name. But first, make sure the name is accessible by checking the legal requirements in your state. Additionally, make sure the name you select reflects the long-term objectives and desired image of your company.
Conclusion:
A wonderful name is expressive. It is crucial to invest the time and effort necessary to locate the ideal candidate for your business. Make a note of each term or phrase that is connected to the name of your company. Create ideas for a shortlist by using a thesaurus, user input, and business name generators.
