How to Choose a Business Name

In today's competitive market realities, a great business name is a key factor, particularly when it comes to small-business success. Choosing the right name for your business can make your venture really successful. On the other hand, a wrong name can make your business fail overnight. To choose a winning business name you have to put some serious thought to make sure your name can communicate to your target audience the know-how, value and exclusivity of your products or services.

Your business name is your brand

The first thing you should consider is that your business name is your brand. This means that your business name should be strongly associated to your products or services as well as to your business reputation. It should be distinctive and authentic so that consumers automatically identify your business as a promise that can meet their wants and satisfy their needs.

Your business name is your products or services

When choosing a business name you have to think that like a customer. What would be the first thing you would like to understand from a business name? Obviously what the business is about. There international brand names like Nike, Lexus or Apple that have already become legends in their field and are instantly recognizable by consumers around the globe, but when it comes to small businesses a business name should give potential customers an idea about what you actually sell. If you are a real estate business, you have to include the word "real estate" in your business name. If you sell CDs, you have to include the word "CD" in your business name. If your own a pet shop, by all means include "pet shop" in your business name.

Your business name is your positive image

A strong business name is basically a projection of a company's image and culture. Consumers enter into a purchase decision with certain expectations and satisfaction is the anticipated outcome. Their expectations are shaped based on past buying experience; what they believe about the brand; what their friends and social network believes about the brand (word of mouth advertising); how the brand advertises and promotes its products or services; competitive offers; and price. Therefore, a wining business name has to project a positive customer purchase experience, positive customer perceptions, and positive consumer behavior response.

Know your target market

If you sell baby products, you have to come up with a business name that addresses the needs of babies. If you sell vacuum cleaners you have to come up with a relevant name that addresses the needs of consumers that are interested in buying vacuum cleaners. If you sell travel services, you have to address the needs of consumers who travel often during the year. However, no matter what product or service you sell, you have to know your target market. How many people travel; to what destinations; how much money they spend; How many people buy vacuum cleaners every year in the U.S. and especially in the State that your business operates; who are your competitors; how many babies are born every year; All these questions shape the image about your target market and you have to have a clear idea about your target audience because you want these people to become your potential customers.

Know your promise

Choosing a strong business name primarily requires determining what you want to promise to consumers. This involves creating a suitable advertising and promotional plan to convey your marketing message to consumers. By consciously creating consumer expectations, which you are able to constantly meet in every single interaction, you can shape customer experience in order to assess, both qualitatively and quantitatively, how effectively you deliver on your promises.

Make it short and memorable

After you have followed all above rules, make sure your business name is short and memorable. Consumers dislike long business names because they cannot memorize them, they confuse them and they can certainly find a competitive firm that can satisfy their needs. The U.S. market is huge and their room for everyone; especially for those ventures that know their business and know what their customers need. Therefore, make sure to choose a business name that is short and by no means forgettable.

In conclusion, your business name can cost you millions of dollars, so do not make a spur of the moment creation. On the contrary, make it a result of considerate thought and serious brainstorming. Remember that your business name should reflect your business activity because it is the first contact that consumers have with your business. Moreover, it is what consumers use to talk about your business to their social circles. Therefore, choose a business name that can open a door for great sales for your venture.

Sources:

http://www.strategicmarketsegmentation.com/business-name-ideas/

http://sbinfocanada.about.com/od/startup/a/createbizname.htm