Naming a Business

Coming Up With Ideas for Naming a Business

Consider Impact

Choosing the name for your new business venture is important. The name needs to accurately convey what your organization does quickly, concisely, and memorably. A company's name has a major impact on how prospective customers perceive the business, in terms of its overall image, appeal, and relevance to their needs.

Brainstorming

One of the best ways to approach coming up with name ideas for your company is to engage in a brainstorming session with your business partners (if applicable) and/or other trusted individuals. Write down your mission statement or primary business objective, and have everyone toss out ideas for potential names.

Don't pass judgment on ideas as they come up during these brainstorming sessions. Instead, keep a running list of all ideas for later review and discussion. The wackiest suggestion can trigger a brilliant idea from one or more members of the group, so it's important that everyone understands ideas won't be criticized.

Narrowing Your Choices

Branding Your Business

The name you choose for your company will form the basis of your organizational image and brand. Ideally, as you start marketing and operating your business, the name will be one that people will instantly and decisively associate with your business.

When you're looking through the list of names generated during your brainstorming efforts, keep in mind the main things that people need to know about your business when they first hear about it. Make sure the name you choose is one that can get that point across immediately.

Consider Competing Names

Make sure the name you decide on is not one that looks or sound similar to that of any of your competitors. It's a bad marketing decision to do anything that might cause people who are exposed to your marketing messages to think about competing organizations.

It's also important to avoid selecting a title for your operation that states or implies anything derogatory about other businesses in your geographic area or industry. Starting operations with practices based on questionable ethical practices will reflect poorly on your organization.

If a website will play an important part in your company's advertising or sales strategy, verify domain name eligibility before making a final decision.

Cultural Considerations When Choosing Business Names

To avoid a marketing blunder that could alienate a portion of your target market, it's important to verify how the name you want to use translates into other languages. It could be a serious error in judgment to select a company name that sounds great in English but translates into something unappealing or even offensive in another language.

Legal Considerations When Naming a Business

Each state has specific requirements regarding the procedure for reserving and registering business names. State name registration regulations are designed to keep new businesses from using names that already belong to other companies.

Additionally, state law often specifies words and phrases that cannot be used in the names of certain types of businesses. States have regulations governing language that must be used in the names of corporations, Limited Liability Corporations, Professional Corporations, and other specific business forms.

Making Your Choice

Selecting a name is one of the first decisions you will have to make as an entrepreneur because the paperwork you will have to file in order to license and form your business entity requires the company's name. Even though you have to choose a name early during the business planning process, it's important to carefully consider your options before settling on the best choice.

Don't take shortcuts when selecting the name under which your business will operate. While it may be tempting to stick with the first decent idea that you come up with, it's in your best interest to search until you come up with the best possible name for your company.