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choosing a business name

Guidelines in Choosing a Business Name

At the start of your business, you probably thought of millions of creative business names for your company. And at one point, you probably have a favourite business name that you are sure you will use once your business is established and needs to be registered.

However, as you were about to register it legally, you started doubting yourself. You start asking yourself, “Is this really what I will name your business?” Don’t worry, though, as millions of business owners have faced this issue.

Choosing a business name is not that easy. It’s more than just thinking of a name you like that will automatically reflect your business identity. This process involves multiple brainstorming, researching, and more. And to help you with that, we listed ten tips for choosing a business name.

Why do you need to have the perfect business name?

Choosing a business name should be a top priority when starting a company if you want customers to be able to find you and avail your business. A business name is a startup and company need. It is the foundation of your reputation, trademark, design, and image.

Your business name will be on everything your company owns and every venture it will take. As such, a perfect business name is a must because:

  • It establishes customers’ first impression of your business. Your business name is what customers will see first – whether it’s a store sign or flyer.
  • A unique business name helps you stand out from competitors. A unique and eye-catching business name can differentiate you from your competitors, gaining more traction from potential consumers and investors. According to the Global Banking & Finance Review, “82% of investors say name recognition is an important factor guiding them in their investment decisions.”
  • You will use your business name for a very long time.  

Top 10 Tips for Creating a Good Business Name

As mentioned earlier, choosing the right name for your company is not easy. You must ensure it will connect with your branding, services, customers, and niche. Moreover, choosing the wrong name will likely affect your business and revenue.

Here are some tips for choosing a business name:

choosing a business name

1. Make sure that it’s easy to spell and remember

Business name is at the forefront of your business. It will be the first bridge between you and your potential customers. As such, choosing a business name that is easy to remember, pronounce, and the spell is crucial.

So, when choosing a business name, try sticking to simple and memorable words. Avoid intentional misspelled versions of your characters or a product. Also, don’t use hard-to-remember acronyms. Please keep it simple. Remember that being unique is not always a good thing.

2. It should have a positive connotation

Words have both denotative and connotative meanings. And some words have a negative connotation, despite having a different meaning. So, when choosing a business name, try avoiding using words with a positive connotation.

For example, for some, thrifty may sound affordable. But to others, thrifty may communicate cheap or stingy. And if your business is trying to showcase quality goods, then this might not be a good choice of words for your business name.

3. Choose a name that can scale and not limit the growth of your business

Likewise, as stated earlier, your business name will stick with your company for some time. Remember not to pick a name that will limit your business expansion or venture. For example, if you are going to open a crafts store, do not name your business “Glitter Shop Manila.” That’s unless you plan to sell only glitters for the rest of your business’s life.

You should not include a specific product you sell. Instead, you can use business names such as “CRAFTSY AU or OUTSIDE MNL.”

4. Ensure that it’s consistent with your brand

A business name is an essential factor for the success of any company. Naming a company is not easy because it cannot just have any word or combination. It must have a meaning that can represent what the company does and what it stands for.

The name needs to be consistent with the branding. Likewise, it should also speak about the company’s values, mission, and vision.

5. Be memorable but not too unique

When starting a business, it is tempting to name your company after a secret word or something concrete to what you do. While unique business name ideas are a great way to differentiate yourself from competitors, they can make it difficult for people to find you online.

6. Try to avoid acronyms

We all know that some of the biggest companies use acronyms to spread the word about their business, like IBM, CVS, PEZ, etc. And as a business owner, it might be tempting to use this as it is easier to remember and quick to pick up. However, for new businesses, it’s one of the biggest mistakes they could commit.

At the start of your business, it’s your goal to establish a brand. And acronyms could lead to confusion and misunderstanding. Moreover, using acronyms in your business name might make ranking in both SEO and PPC campaigns challenging.

7. Avoid using your name

Unless you are trying to establish a brand of your own, either for professional services or simply your signature, try avoiding using your name in a business. Your name usually does not communicate anything with your business. As such, it won’t mean anything to potential customers. Also, avoid using someone else’s name without their permission, as it might result in legal issues later.

8. Don’t copy your competitor

Choosing a business name is one of the most critical decisions. You want to choose something that will stand out and be memorable, but also something that won’t infringe on someone else’s trademark. Thus, n choosing a business name when choosing a business name.

It might seem like copying your competitor’s business name is an easy way to start the industry. Still, it can lead to legal problems down the line. If you’re going to copy their business name, at least make sure it’s spelled differently.

9. Conduct trademark research

Similarly, if you want to avoid any legal issues mentioned above, try to conduct trademark research first before naming your business. A trademark search is not always necessary when starting a new business, but it’s still wise to do one to ensure that you don’t end up with the same name as someone else. The benefits of trademark research are endless. It will save you time and resources in the long run if you do it now.

Here are some great resources where you can start your trademark research:

10. Pick a web-friendly name

Lastly, when choosing a business name, pick a web-friendly name. You will likely run a digital marketing campaign in this age of digitalisation and the internet.

Later, you will start building your websites and opening your social media accounts for your business. Most of these platforms have a limitation on business accounts. As such, it’s essential to avoid these mistakes and do your research.

An excellent way to dodge these errors is to use an online tool like “NameCheckr,” which will show you if the website’s domain or business name’s trademark is available.

Likewise, a domain name is what a Startup website needs. Selecting a business name with a simple and memorable reputation will be the best. Any unusual spelling or long-term might seem significant at one point. But for websites, this could cause issues and make it harder for potential customers to find.

Ready to Choose Your Business Name

Like any other part of your business, names are an investment. Just be sure to pick a business name that will make you happy and resonate well with your customers, as you will be using this for a very long time. Take your time and conduct your research.

And if you need further help, contact Flexilabs!

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