Choosing a Business Name

Image courtesy of therodinhoods.com

“A good name is more desirable than riches…” Proverbs 22 v 1 (NIV)

Throughout history the virtues of ‘a good name’ has been vaunted. Individuals desire a good name because it boosts their reputation, define their personality and affect how other people perceive them.  A good name for any individual means integrity, honesty and decency.

Likewise, an Entrepreneur starting a business is encouraged to identify a business name which elicits the best responses from its customers.  A good business name attracts customers, is easy to remember and has a positive connotation.  The name defines the type of business and helps the entrepreneur to create an attractive brand with appeal that is a magnet for positive attention. 

The business name is the first image that the business projects.  It is the first thing that will either entice or offend the customer.  Further, assuming that the business lasts for many years, the entrepreneur will have invested time and money in not just building the business name but the brand as well.

So what are some things to consider when selecting a business name?

Firstly, the name should have a clear-cut meaning as it has considerable branding and marketing implications.  If the intention is to attract large numbers of customers then the name must boost the value of the brand.  Building a brand is just as important as choosing a business name particularly if the entrepreneur intends to open a chain of businesses.

Secondly, it is important to remember that when naming your business, ‘a name is not just a name.’ Imagine giving your business a name that means something offensive in another culture?  That would be disastrous to your business particularly because businesses, whether small or large no longer operate in the local marketplace only.  Chances are, once the business is registered there is some possibility that your business name will be referenced when that offense is mentioned.

A good business name should be memorable and as much as possible, tell exactly what the business does.  What is the point of giving the business a name that no one can recall? The business should be named such that when the customer is ready to make a purchase, it is easily recalled and at the top of their mind. 

In addition, the business name should tell what the business does.  It is unlikely that the new business will become a national or international brand overnight so it is critical that the target market gets some idea about what exactly the business actually does.  Giving the potential client some ideas what you do will make it easier for the business to be found when that particular service is being sought.

Another important consideration is how the business will progress through the years.  Essentially, will the name stand the test of time?  For example, if Sandy opens a clothing store and names it “Sandy’s Clothing”, what will happen when Sandy expands the business to include fashion accessories, personal care items, and household appliances?  One of two things will happen; either Sandy will have to change the business name or wait until her customers visit the store in order to recognize the changes.  Sandy may also be forced to increase her marketing to inform customers of the expansion.  It is therefore advisable to choose a name which can grow with the business.

Finally, trademarking is important in building a brand.  If the name selected is a good business name, it should be trademark able.  Trademarking protects the proprietor’s right of ownership and interest in the Mark by ensuring that the proprietor has the exclusive right to use the Mark to identify his goods and/or services, or to authorize another to use it in return for payment.  A trademark is any sign that is capable of being graphically represented and capable of distinguishing the goods or services of one undertaking (i.e. any person, company or business entity) from those of another undertaking”. (www.jipo.gov.jm)

Of course, there are many other considerations in finding a name for your company.  Significantly, the entrepreneur post brainstorm should pinpoint a name that is unique but captures in a fulsome way all that the business does.

As always, I look forward to your feedback.