You may think that picking a business name should be way down on your priorities when setting up business. Our guide will show you why it may be more important than you had first thought.
There are many important elements to consider when starting a business. You have to take into consideration start up funding, a strong actionable business plan, market research, competition analysis, and various other important “cogs in the wheel”.
An element that many businesses do not put as much importance to as they should is the business name.
In This Post:
Why Your Business Name is so Important
If fortune willing your business is a success, then the name you choose is going to be with you for a very long time. There are certain things that must be considered before you jump in and register the first business name that enters you mind.
Is it easy to remember?
Some of the most successful businesses in the world all have brand names that are easy to remember. Having a business name that people can easily recall will help you for a number of reasons.
If a customer has used you once before and wishes to use you again, having a company name that is not catchy will probably result in them having to look you up on the Internet or phone directory, and that could lead them to one of your competitors instead.
An easy to remember company name is also more likely to be passed around by satisfied customers, making word of mouth business more likely.
Does it describe what you do?
A well tried and tested tactic in the business world is having a business name that reflects the service or product that the company offers. “Regal Sportswear” would obviously be recognised as a company dealing in sports clothing and equipment, the same as “John’s Cars” would be easily spotted as a place to purchase cars.
It is not paramount to the success of your business as to whether your trade is made obvious in the name of your company, but some business people would consider it as an option.
Is it “brandable”?
Marketing has become so competitive over the years that having a generic company name is not always enough anymore.
Your company name is also your brand, and as such is as marketable as your business itself. All company stationary, and advertising will carry your company name, so it is vital that you think more creatively about your business name than before.
You also need to consider the future of your business. If you have a company is named after your family for example, what will happen if you sell the company? Your name will forever be associated with the business.
It is much more attractive for a business investor to buy a company with a brand style name, vs a personal named business.
Is it legal?
There are of course limitations you have to adhere to when naming your business. You cannot under any circumstances break trademark and give your business the same name as a company already trading.
In some cases even a name that was close to another companies could cause problems for you. For example the owners of “World Wheels LTD” could rightfully get upset if you named your company “Worlds Wheels LTD”.
You must also not give your business the same name as any other trademarked product such as a movie, sports team, celebrities or anything else covered by trademark.
Ignoring this can land you in seriously hot water legally.
Although your company name alone will not determine the success of your business, it is a very important element of the business start up process that should be properly considered.
Not only that, but it is also probably the element that you will have the most fun with!