How to name a business
Naming your business can be one of the more fun parts of the start up process. A good business name can make a good product or service into a great one. The business name will ideally communicate what you do and connect with your intended customers, all the while remaining unique, catchy and easy to remember. Simple!
Naming a business
Remember during the naming process that every business is different and what works or doesn’t work for some may have the complete opposite effect on others. Picking a business name can be as tricky as picking a baby name – so don’t worry if you are having some trouble deciding. Take a look at our 3 basic tips and hints that all mumpreneurs should take into consideration:
The more your business name communicates, the less confused your customers will be and the less you’ll have to explain what you do. Ideally your name should be unique and reinforce the key elements of your business.
- What do you want to communicate with your name? Perhaps you’d like people to know what services you offer or maybe you’d like to focus on a certain quality of your business. For example, think of the discount shop Go-Lo. There’s little chance of anyone being confused about the low price of their products.
- Be careful not to go overboard on the communication front – it still has to be catchy. Imagine if Mercedes was called “High Quality Automobiles”. It just wouldn’t work.
- Try to communicate using the least amount of words possible. Remember that people don’t want to type long company names into search engines.
The wording of your business name is crucial and must connect with your target market to ensure success in the industry.
- Most business names use either real words or made up words (coined names). Keep in mind that successful companies with coined names such as Google or Kodak often have large marketing budgets to support them and inform customers about what they do. Real words are more ideal for small start-up businesses.
- If you do decide to coin your own name, ensure that it has a meaning and still reflects your company values. For example, Microsoft was coined by Bill Gates who specialised in microcomputer software.
- Try to avoid puns and word plays. They might be funny and clever to you but can often be hard to connect with and misunderstood.
- Unique spellings and unusual words can stand out but will not always work in your favour. If someone is searching online for your business and has no idea how to spell it you’ve just lost a sale.
- Keep things snappy and don’t make your company name too long.
- Avoid numbers, initials and acronyms as much as possible. Once again, it works for companies with huge marketing budgets such as IBM and KFC, but for start-up companies it’s best to steer clear.
- Keep in mind that both online and offline directories are usually listed alphabetically, so if you want to appear at the top you should take this into consideration when naming your business. Calling your business AAAA products for example may just be over the top.
3. No Limits
Successful businesses need a name that will grow with them and stay relevant. Where you are today may be a completely different place to where you’ll be in 10 years and your name has to continue to reflect the company
- Avoid geographical references in your company name. This is all good and well if you call your business “Paddington Plumbers” and you are in fact a plumbing business operating within the suburb of Paddington, however, keep in mind that you may grow and want to provide plumbing to the whole city (or country!) one day.
- Using your personal name as a business name can be successful – just look at McDonalds. When you attach your own name to a company it can increase its perceived credibility and it’s also a good tactic to use if you’re an artist or designer. However, it can also be limiting in the future if you decide to sell your business, so keep this in mind before naming your business after yourself.
- Don’t focus your business name on a product that may pigeonhole the company or be irrelevant in a few years. For example, if you only sell keyboards try not to put too much emphasis on this as the company may expand and you may end up selling computers or many other things in the future.
Business name checklist
Right, you’ve narrowed it down and have some great ideas circulating. Here are the next steps in the business naming process.
- Always have a “shortlist” of names as opposed to pinning all your hopes on one name. It might not work out and it’s good to have backups ready.
- Ask friends and family for their honest opinions on the shortlist of names you’ve selected. It’s great to have some fresh thoughts and if you get positive reactions about a particular name you know you’re onto a good thing.
- Google the potential names to make sure that there is no one else with the same or similar name. It’s also a good check to see if your name brings up any strange results.
- Find out if the domain is available for your website. You can check this by using the AusRegistry WHOIS Service. The Australian Government website has more information about domain names if you need it.
- Check the Trademarks Database to ensure you won’t be infringing on someone else’s Trademark. You can find all necessary information about this on the Australian Government website.
- Check the company name and make sure there is not already a company registered with this name. If you decide not to register a company at least reserve the company name.
Now that you’ve got the information you need to name your business, you might want to look to further resources such as Setting up a Company and Registering a Business Name.