How to Choose a Business Name

pen_pad_127×202.jpg Choosing a business name is a very important part of starting up your business. In many cases, it will provide your customers with their first impression of your company. It will give them a glimpse of what you do. It will spark their interest, and be a determining factor in whether or not they want to use your services or buy your products.

To differentiate your company from others in the industry, you will need a good name. It is an essential element in branding and promoting your business, and should not be taken lightly.

When choosing a name, here are a few things to consider:

Your business name should reflect what you do.
It should give some indication of the services you provide and/or the products you offer. Research has shown that businesses with more descriptive names perform better than those with non-descriptive names. One reason for this is customer perception. For example, let’s say you are looking in your local directory for a Computer Repair Technician and you see two companies listed - one is “Advanced Computer Repairs” and the other is ”Take 1 Services and Repairs.” Based on the name, you would probably perceive ”Advanced Computer Repairs” to know more about computers, and would therefore contact them first for your repair project.

Avoid using location-based names. For example, “Atlanta Training and Consulting” may sound like an ideal name for a training business located in the Atlanta area, but what if you decide to expand the company to service other areas.

Your business name should be easy to remember.
You want your name to stand out among your competitiors, but be easily remembered by your customers. It may be hard to find the median between the two, but the extra effort to do so, will greatly benefit your business in the long run.

Avoid using acronyms, as they rarely, if ever, mean anything to the customer. You want to start out with a full name, and if an acronym surfaces as you develop your standing in the market, that is fine. However, do not make the official name of your business an acronym.

Your business name should be considered for domain name potential.
At some point during the life of your business, you will want to pursue an online presence. This may happen as soon as you create the business, or after some intial assessment period.

An online presence is important! You want to make sure that your business name is transferrable to a domain name. I would go even further to say that once you have chosen a business name, you should immediately search for, and purchase, a suitable domain. This way you will be sure to get the name you want, or at least know if you need to go back to the drawing board.

Challenge (Grab your notepad): If you are planning to start a business (now or sometime in the future), and you know your field or industry of interest, take an hour or so to write down 6-8 potential names. After drafting the list, consult with friends, colleagues, and family members to come up with the top 3 names.

This article was featured in the January Edition of “Career and Job Advice” at Ask the Career Counselor. For more career tips, visit the January 2008 Carnival of Career and Job Advice.

Posted on December 12, 2007
Filed Under Business Identity