Business PlanLegal Advice

3 Steps For Choosing The Perfect Company Name For Your Startup!

Have you struggled to get a perfect company name for your notable startup? If yes, then this article is undoubtedly quite suitable for you. Read on to know more about it.

The growth rate of business start-ups is increasing year over year. About 69% of the total start-ups begin as home businesses and end up establishing digital platforms recently due to the digital awareness and the stir that has been caused across the globe. However, in 69% of the start-ups, only 40% are witnessing sharp growth and becoming profitable. Starting your own business comes with huge responsibilities and requires disciplined structure, the capability of understanding the pain points of potential customers, and branding. Above all, creating brand value and consistency consumes more time and potential. It begins with naming your company. This article emphasises the significance of naming your company and retaining your brand value right from the start. If you are contemplating starting your brand, please read on to know more on this topic.

Common Mistakes Found Amongst Start-Ups

Let’s begin with the common mistakes found among the start-ups so that you can take a diversion if your thoughts are inclined towards any of these mistakes. Now, the business names must have a ring that should resonate among the targeted customers.

  1. If you are a start-up, you might think of a name that goes well with your product or service; however, you might take up additional services or include products for your customers over time, understanding their pain points throughout the business. Therefore, you must analyse your budget and marketing strategies to build your brand before deciding upon it.
  2. Choosing an obscure name might sound fun or excite you, but it could have a negative effect as well, as the potential customers might find it difficult to remember your name; therefore, they won’t be able to pass it on to their friends who might be interested in your product or service. Thus choosing an obscure name might hinder the chances of marketing your brand. Also, if you plan to establish a virtual store for your company, your brand might not appear on the first few pages of the search engine, as they find it to remember your company’s name in the first place.
  3. Also, ensure that you choose a name that doesn’t have uncommon spellings. Since most customers try choosing brands online or rely on Google maps to reach you, during such scenarios, if your potential customer is unable to type the correct spelling, you have a good chance of losing that customer.
  4. Registering your perfect company name and domain availability must be the first thing you must do before taking it any further to setting up the bank accounts or registering the business names with the state. If you try to do it the other way around, you might face a problem.

What You Must Consider Doing

Now that we have gone through the mistakes let’s begin discussing the do’s you mustn’t miss out on. Finding the Perfect Company Name through easy steps for a startup is not easy; it’s time-consuming yet worth it.

  • Should give out the right impression:  

Your perfect company name must give the right impression to your potential customers and communicate the right way. The company name will communicate to your customers, who value small things such as additional effort during the customer service, additional priority, loyalty cards, and so on. If your company name doesn’t sound professional, they might conclude that you are not serious about your business. Potential customers are affected by the mediums you choose, the look and feel of your website, marketing strategies, the signage of your company, and things that speak about your brand. Remember that your brand name will make a huge impression on your potential customers. 

  • Conduct a brain-storming session:

After acquiring the sense of what your business shall be called, gather your staff or team, and start to work on your creative phase. Try to generate more creative ideas and come up with more possibilities to choose a better name that represents your brand in the best way. Having the essence throughout the brainstorming session, making lists, mind-mapping, diagrams, taking notes, and sharing them with your colleagues help you better. 

GET YOUR PERFECT COMPANY NAME

  • Be descriptive:

You might think of a name that is highly motivating for your business or the product you are about to sell. Keeping in mind that you might expand your business also restricts you from being more descriptive; therefore, try to avoid the names that sound too vague for the customer to understand about your product or service.  

  • Think creatively: 

After the brainstorming session, you might be excited that your creative juices are flowing well; even though you come up with the words that are more suitable for your company, choose the names that are modified and not plain. 

  • Look ahead of the overseas hurdles:

You might be a start-up. Tomorrow you could trade your services or products to foreign countries; therefore, looking ahead to the future will help you decide on your brand name better. Careful considerations of the words you choose and that the name or the words are not abusive or offensive in other languages help you grow across your borders. 

  • Understand the legal aspects before making a decision:
  • The name should not be offensive.
  • Registering a trademark for your brand name that potentially prohibits another company from taking the recognition of your brand. It also prevents potential customers from associating with a cheaper product that has stolen your company’s brand.
  • Understand Section 20 of the companies act, 1956: This law across India prohibits any company from utilising undesirable names or names that nearly resemble the name of the existing company. Therefore checking the MCA website to come up with a unique name for your company helps you here. The name shall not be the exact translation of the existing company in another language.
  • The start-up company has to submit their choice (at least 6) in the order of preference to the registrar on the e-form for approval.
  • Understand the types of Trademark: Jurisdiction activities or the law gauge the similarities between the two names, especially the similarities between the sight, sound, and meaning of the names, and then the similarity between the goods being sold by the companies. Therefore, being a start-up company, choosing the name of the company that already holds a trademark might get you in more trouble.

Conclusion

Naming a company is the most crucial part of the business as it emphasises your brand across your potential customers. Although the process would be overwhelming and consumes your energy and effort, getting help from professionals like VakilSearch, renowned for handling legal issues related to business naming, helps you fly through the process. Naming your company and carrying out these procedures could seem to be a huge burden at first; it’s all worth it for the moment when you have built a strong brand for yourself.

Read More:

  1. Best Company Names To Attract Investors
  2. Best Business Name Generators
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