Every small business owner wants to choose a unique name to resonate with their target market and that’s simple to remember. While the perfect name may be elusive, the best business names aim for a balance between these objectives. However, selecting a business name should be considered carefully because it will constitute a substantial component of your brand.
Whether it’s your new small business or product offering, a name can mean the difference between establishing a loyal customer base and failing. Capturing the ideal name the first time is critical to a successful launch and can make your marketing life and branding considerably smoother and more productive throughout the development of your company. It’s easy to detect a poor name when you see one, but you may be wondering what goes into creating an exceptionally great one.
The Pros of Selecting a Business Name Wisely
Picking a business name is a significant step in the marketing preparation process. You should choose a name that exhibits your brand identity and take the necessary measures to ensure it is adequately protected and registered for the long term. Another consideration is determining if the name is Web-ready or not. You can do that by checking to see if the domain name is available. The name of your business has a tremendous impact on how investors and customers view you, and in today’s interconnected society, that quickly translates into a global choice. It also describes the business so that the clients are informed immediately of the purpose of your company. Depending on the type of name you choose, other advantages of choosing a business name include:
- Provides a personal touch to the business when it incorporates the name of the owner
- Captures an early listing in alphabetized directories
- Supports future expansion into other products or services
- May not always require registration
- Is unlikely to be confused with other companies when unique
- Informs future customers of the business’s location
- Is likely to obtain comprehensive trademark protection when creative
Right or wrong, the name you choose measures your business savviness and understanding of the industry and market you are contemplating entering.
Mistakes to Avoid When Choosing a Business Name
Many small businesses start out as individual agencies, partnerships, or freelancers. In these situations, it’s natural to gravitate toward using your name as your trade name. Although there is nothing wrong with choosing to do this, it does make it more challenging to build brand awareness and present a professional image. Following are some other possible disadvantages associated with business name choices:
- Personally identifying the owner may be problematic if the business fails
- Protection under trademark laws may be limited
- May limit the potential for future expansion into other products and services
- Some names may be difficult to remember, pronounce, and spell
- Many may lack a unique identity
- Could be confused with other similarly named companies
- The name may already be in use
- Other corporations with similar names may sue for infringement
- May not inform potential customers of the nature of the business
- Company’s initials could be awkward
- Trendy names can lose their impact quickly
- Including locations may affect the potential for expansion to other geographic regions
- Some names may create impressions that the business is government related
- Could be confused with major competitors and result in a lawsuit
- Average, descriptive names may receive limited protection under trademark laws
In the excitement of starting a new business or expanding an existing one, make sure to consider these essential issues when it comes to choosing the name for your business. By drilling into your creative side and dodging any inherent pitfalls, you can create a name that accomplishes your objectives for the short and long term and one that will support upward expansion as your company evolves.
The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.