Name Your Business

What's in a name? Plenty as many new business owners find out. If your business name confuses customers, you're in trouble. In the long run, you'll have to spend a great deal of money correcting the problem.

A well-chosen name, on the other hand, can act as an effective advertising tool. A name should say something about your business. If it doesn't, you've lost an advertising opportunity, because every time your name is said you are communicating something about yourself.

The Name of the Game
A good name gives the customer a sense of your business. Whether the name uses straightforward description or imagery to create an aura, ultimately, it should answer the customer's question: "What can I expect?"

Memorability of a name is critical. The problem is, devising a short, clear name that isn't already in use is no easy challenge. As most companies have multiple characteristics, and it is difficult to get that all in a name, yet have the name be short and memorable enough to work.

Because brevity is vital, most companies choose between a descriptive name and a name that creates an image. How do you determine which type is best for your company? Let your market be your guide. For example, a firm seeking an industrial clientele, instead of a general, consumer clientele, may opt for a strong, descriptive name.

A good way to start the naming process is to make a list of all of the characteristics of your business. The list provides you with a starting point to form combinations for a name. The end result is a good, short name customers will remember. The long-term effect of the exercise is that it forces you to pinpoint your business's purpose. If you can't boil your business goals down to a series of short adjectives and nouns, you probably haven't defined your market enough.

Consumer-oriented, as opposed to business-to-business, companies usually have a tougher fight. Since these firms must compete for the consumer's attention with countless number of other products, the name must do more than just describe the service. It must catch the consumer's attention and conjure up an image.

Make a Name for Yourself
While the name must be an indicator of your business, it must also stand out from your competitors. Think of the amount of Convenience stores that use some form of the Quick in their names. Similarly, few other businesses need to distinguish themselves from the competition more than restaurants.

Your Name Here
While an odd or exotic name may get people's attention, one that's too offbeat may have the wrong effect. People don't like to be embarrassed, so if they can't pronounce your company's name, or if the spelling is so unusual they can't figure it out, odds are that they won't call directory assistance to find you. Instead, they'll move on to their second choice, and you'll be left with a richly exotic-sounding name and no customers to hear it.

Many entrepreneurs, brain weary from other start-up tasks, take what seems like the easy route to naming their businesses. Having run out of ideas, they name their businesses after themselves. But more often than not, that's a mistake. Mary Smith, Inc. might sell brooms, create designer ball gowns or remove hazardous waste, but a customer would never know without making an effort to find out. Since few customers have the time or the desire to take unnecessary steps, it's up to you to make understanding your business as easy as possible.

In rare cases, however, your name may be appropriate. For example, if you've developed a decade-long reputation in an industry, and you are starting a new business in that industry, your name will attract customers.

If you plan to expand and hire other consultants to work with you, the name could hurt business in the long run. When a person's name is the name of the business, it sends out the message that there is only one reliable person to speak with at the firm. What's more, customers may feel shortchanged if they don't get serviced by the company's namesake.

You Name It
Once you've chosen a few names that fit the image you want to create, test them out on friends and family (or if your budget allows, potential customers, using a formal presentation made through a survey research firm). Try some names that are strong on description, and others that fall somewhere in between. If you poll groups of potential customers, remember to zero in on your target market. Have members of this group write down not only their feelings about the names you've chosen, but also their idea of what such a company might sell, how it would be run, who would run it, and so in Get as much detailed information as possible.

Do the same thing for your friends and family.

Finally, after you've selected the perfect name, conduct a trademark search before introducing the name in public. If no one else is using the name, trademark it yourself for protection.