Choosing the Right Name for Your Business to Support Long-term Success

SHARE WITH OTHERS

Names matter. Especially Business Names. Naming your start-up is an important exercise, a smart way to market your company, and a way to position it for future growth.

Business owners often spend several months finding just the right name to communicate the unique value their company offers. It’s a lot of pressure when you’re already launching a new product or service, juggling numerous batons to get your idea off the ground.

So here are 7 tips to help you out in the process of selecting the right business name.

1: Appeal to your customers

Yes, it’s important that you like the name of your business and feel passionate about it. But it’s even more critical that it appeals to your customers.

Begin the naming process with a clear understanding of who you’re selling to. Are they male or female, young or old, high-income earners or middle class? And if you don’t have customers yet? Make some educated assumptions.

2: Avoid acronyms

Sure, if you think you’ll soon be the world’s largest zipper company (YKK) or a manufacturer of over 55,000 products (3M), or a retail-clothing company with over 100,000 employees (H&M),  use an acronym. Otherwise, your business name should communicate what your business actually does.

It’s the first step in establishing your brand and its identity. A good business name becomes a marketing tool for your product or services.

If you pick a good name that tells people what you do, you’ll spend less time explaining what that is, less time building your business brand, and more time selling your services.

3: Don’t use your own name

If you have plans to sell your business in the future, avoid using your name. Who wants to buy “David Ryan’s Air Conditioning Service,” unless their name is David Ryan too?

The other disadvantage to using your own name is that it suggests you’re a one-man show or small operator. While some customers may want the personal touch of a very small business, most want to know there are reliable resources behind the name.

4: Make sure the name works online

Before finalizing your new business name, check to see if a domain is available. Of course, your domain doesn’t necessarily have to be your company name – it could also be a phrase that captures what you do.

A good example is the Investor Education Fund, a non-profit organization funded by the Ontario Securities Commission, with a mandate to provide unbiased and independent financial information to Ontarians. For their URL they selected GetSmarterAboutMoney.ca

5: Avoid a pigeon hole

Don’t limit future expansion by picking a name that either restricts you to a specific geographic location or a limited product line-up. For example, a plumbing franchise called Vancouver Plumbing and Heating will face challenges when they expand to Squamish or the Sunshine Coast, or move into swimming pool maintenance.

6: Think about the visual and audio effect

In addition to their literal meaning, words have visual connotations your customers will see as either positive or negative. Consider “cashmere” versus “coarse.” The former conjures soft, fine wool, while the latter evokes things that are common, crude or rough.

Listen to the names you consider. If you’re starting an automotive business, you’ll want it to have a reliable sounding name. “Rock River Automotive” beats “Puppy Dog Cars.” The former communicates reliability, plus the alliteration adds strength. But the latter conveys little grit or backbone.

7: Shorter is better

Consider the following businesses: Google, Pixar, Nestlé, Xerox and Honda. They’re all successful organizations with short names … just 2 syllables. The longest is 6 letters.

Research suggests shorter names are easier for your customers to remember. They also have the added advantage of easily fitting onto your business card – and looking better on signage.

Take your time!

It’s key to find a business name that works for your start-up over the long-term. Hopefully, you’ll be living with the name for many years. Take the time to pick one that appeals to your customers, provides the opportunity for expansion, works effectively online, and just feels right.

What process did you go through to find the right business name? Use the comments section below to share your learning.

SHARE WITH OTHERS