7 Tips for Choosing a Business Name: Ensure Success from the Start Picking a business name involves more than creativity; it reflects your identity and goals.
The growth rate of business name 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 Startups
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 name must have a ring that should resonate among the targeted customers.
- 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.
- 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.
- Also, ensure that you choose a name that doesn’t have uncommon spellings before choosing to change company name. 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.
- 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.
7 Tips for Choosing a Business Name
Coming up with a business name may be an exciting process with various creative ideas and perhaps a favorite already in mind. However, selecting the right name goes beyond personal preferences. It should mirror your business’s identity, align with its goals, aid in marketing efforts, and steer clear of legal issues.
Since your business name will stay with you for the long term, it’s crucial to thoroughly contemplate your choice before investing in business setup, website creation, and promotional materials. To assist you in this endeavor, here are some helpful tips to begin your journey.
Follow Your State’s Naming Guidelines
Follow your state’s naming guidelines when choosing a business name, especially if you plan to establish a corporation or limited liability company. State laws often prohibit using a name that is already in use by another business entity within the state or one that bears a deceptive similarity.
If you proceed with setting up a corporation or LLC, you might be required to include a business name identifier like ‘corp.,’ ‘inc.,’ or ‘LLC’ after your chosen name. Additionally, some states maintain a list of restricted names, such as the word ‘bank’ for financial institutions.
To find your state’s specific naming regulations, visit the website of the state agency responsible for business filings. Most states offer online searches for registered business names, enabling you to check if your desired name is available. If you’re not yet ready to establish your entity, many states allow name reservations or registration of your business name as a trade name or DBA (Doing Business As). Adhering to these guidelines will help you avoid legal issues and ensure a smooth process for your business naming.
Don’t Pick a Name That’s Too Similar to a Competitor’s Name
When choosing a business name, it’s crucial to avoid picking a name that closely resembles a competitor’s name. A unique name is essential to set your business apart and avoid confusion in your local market. For instance, if there’s a ‘Blue Horizon Hair Care’ in your area, refrain from naming your business ‘Blue Horizon Nail Spa.’
Using a too-similar name could lead to potential trademark infringement accusations and legal battles. More importantly, having a distinct brand identity is vital for your business’s success, and being mistaken for a competitor can be detrimental.
To conduct a thorough investigation, start by searching the internet for similarly named businesses. Additionally, check the U.S. Patent and Trademark Office database for registered trademarks. Be vigilant about examining alternate spellings and abbreviations during your search. By selecting a unique and differentiated name, you’ll protect your business and establish a strong brand presence in the market.
Choose a Name that People Can Spell and Pronounce
Selecting a business name that is easy to spell and pronounce is crucial for its success. Long, complex, or hard-to-spell names can lead to customer confusion and frustration. It’s important to consider that a name that’s difficult for people to remember or pronounce might deter potential customers from recommending your business to others.
To avoid these issues, opt for simple and memorable words that resonate with your brand identity. Avoid getting overly creative with spellings or using complicated acronyms, as this can make it challenging for customers to recall your name easily. A straightforward and recognisable name not only facilitates word-of-mouth marketing but also leaves a lasting impression on your customers.
When people can effortlessly spell and pronounce your business name, they are more likely to engage with your brand, resulting in increased recognition, trust, and loyalty. So, make sure to choose a name that is user-friendly and fosters positive associations with your business.
Make Your Name Web-friendly
In today’s digital age, making your business name web-friendly is essential for establishing a strong online presence. As you plan to create a website and set up social media accounts for your business, conducting thorough research becomes crucial. Check if you can secure a domain name that aligns with your business name and if social media handles are available in your chosen name.
When it comes to domain names, simplicity and memorability are key. Opt for a straightforward and easy-to-recall name that reflects your brand identity. Avoid using unusual spellings or excessively long names, as they can pose challenges for potential customers trying to find you online or accurately type your name in emails.
Having a consistent and easily accessible web presence with a matching domain name and social media handles enhances your business’s credibility and brand recognition. It allows customers to find you effortlessly and engage with your business seamlessly across various online platforms, contributing to your overall success in the digital marketplace.
Be Memorable But Not Too Unique
When selecting a business name, finding the right balance between memorability and uniqueness is crucial. While it’s ideal to obtain trademark protection for your name, small businesses might face challenges in achieving this.
Generic or location-based names like ‘Best Plumbers’ or ‘Chicago Pizza’ may attract customers, but they generally lack the potential for trademark protection. On the other hand, coined names like ‘Xerox’ create strong trademarks but may leave potential customers puzzled.
To strike the perfect balance, opt for a name that is both creative and distinctive while still reflecting a key aspect of your business. This approach allows your business to stand out from competitors while maintaining a level of relevance and recognition among your target audience. A memorable yet descriptive name will leave a positive and lasting impression on customers, making it easier for them to connect with your brand and remember your business in the long run.
Pick a Name That’s Consistent With Your Brand
Selecting a business name that aligns with your brand is vital to establishing a strong identity in the market. Start by identifying the unique qualities that set your business apart from competitors. Whether it’s your convenient location, extensive product selection, exceptional customer service, or specialised knowledge, understanding what makes your business special is crucial.
Once you’ve pinpointed your distinctive attributes, choose a name that reflects those qualities. For instance, ‘Speedy Car Wash’ and ‘Velvet Touch Car Wash’ both represent the same type of business, but they evoke different images and appeal to distinct clienteles. ‘Speedy Car Wash’ emphasises efficiency and quick service, targeting busy individuals seeking convenience. On the other hand, ‘Velvet Touch Car Wash’ implies a premium and luxurious experience, attracting customers who value meticulous care and attention to detail.
By picking a name that resonates with your brand’s essence, you create a strong and cohesive message that attracts the right audience. Consistency between your business name and brand identity will build trust, loyalty, and a positive reputation, leading to increased customer recognition and business growth.
Don’t Limit Yourself
When selecting a business name, it’s essential not to limit yourself to specific locations or services. While names like ‘Cleveland Garden Care’ may initially seem fitting for a local business, they can pose challenges when expansion becomes a possibility. Imagine if the business wants to grow to Akron—such a location-specific name may no longer align with its broader vision and might deter potential customers.
Similarly, be cautious with names that describe only your current services. As your business evolves and diversifies, an overly specific name might no longer be appropriate. It’s crucial to choose a name that allows for growth and adaptation as your offerings expand.
Naming your business is an exciting and creative process, but it requires careful consideration. Before finalising a name, research your state’s legal guidelines to ensure its availability. Moreover, pick a name that not only reflects your business’s present image but also aligns with your long-term goals and aspirations. A well-chosen, versatile name will enable your business to flourish and remain relevant as you forge ahead in your entrepreneurial journey.
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.
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Should Give Out the Right Impression
Your perfect business 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.
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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.
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Be Descriptive
You might think of a name that is highly motivating for your business name 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.
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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.
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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 business 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.
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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 business name 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 name 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.
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