Creating a new business is exciting, with hours spent brainstorming every element, from product and service offerings to the corporate structure. However, no element is as personal as the name of the business. So before making a snap decision that you may regret down the road, set your gut reactions and personal feelings aside to consider the key points listed below.
Know the Laws
If you’re forming a corporation or limited liability company, it’s a good rule of thumb to avoid using the same name that another company owns. However, it is common for smaller businesses to use redundant names, especially when the original business name was filed in a different state and it doesn’t violate trademark rules. Additionally, most states don’t allow businesses to use names that are deceptively similar to their competitors’ names or inappropriately associated with certain industries. For example, only legitimate financial institutions are allowed to use the word “bank” in the name. Bottom line… know the regulations about corporate names in your state and when in doubt, consult with an attorney.
Aim for Clarity
A name that’s clever to one person is likely to be confusing to another. When it comes to naming your business, forget cute and kitschy (unless you’re opening a “Kountry Kitchen”). With very few exceptions, clarity is key.
List Descriptive Words
There are many schools of thought behind naming a company, so it’s often helpful to start with a list of words that are representative of the business. Also consider the culture and reputation you’re seeking to build. Once you’ve assembled a list of about 15-20 strong words, narrow it down to your top three. When you believe you have the final name, make sure it represents the meaning behind those three words. If not, you may want to rethink your name.
Here are a few words from our master list of corporate name descriptors to help get you started.
Dignified
Fun
Joyful
Literal
Positive
Pride
Quirky
Satisfying
Trustworthy
Think Long-Term
Too many business owners choose company names based on what they’re selling or offering in the short-term, without a thought toward the future. This is especially true for service companies. If you’re launching a practice management company targeting dentists, for example, consider that you may want to apply your experience and expertise to other medical specialties down the road. A name that’s not too specific will allow you to expand your company’s scope without having to rebrand or create an entirely new entity.
Test the Name
You might be very pleased with the company name you’ve created, but does it really work? Granted, you don’t need everyone’s approval, but you do need to socialize the name enough to know whether potential customers will get it. If you’re doing this on your own, there are a few key questions to ask colleagues and potential customers:
Is the name memorable?
Is it easy to pronounce and spell?
What comes to mind when you hear the name?
Does it position the company in a positive light?
Does the name represent the following words? (insert three key words from above)
Does the name feel right?
If you’re working with an agency, they’ll take a more formal approach to testing your name.
Secure the Domain
While securing the domain name is the final step, you should check along the way to ensure that company names in the running are available before spending too much mental energy on them. Unfortunately, securing the perfect domain name can be the trickiest part, but is it critically important since approximately two-thirds of customers won’t associate with a business they can’t find online.
When choosing your domain, consider these guidelines to avoid common mistakes.
Don’t use purposefully misspelled words; customers are not likely to remember them.
Avoid “to,” “too,” “two” and “2” since most people are not patient enough to try all forms of the word when typing the URL to find you.
For-profit companies should opt for “.com” as the top-level domain, whenever possible. There are so many others to choose from, but .com is still the standard in customers' minds.
Logical abbreviations for long company names should be considered. For example, Baylor College of Medicine uses “BCM” in its URL. Even though you can have up to 63 characters in a domain name doesn’t mean you should.
Naming a business is fun and creative, but also can be tied to the success of your new venture, especially if you rely on online traffic. Take your time on this phase and work through the process outlined here. If you reach an impasse, seek professional assistance. After all, “what’s in a name” is everything.
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