Note: Some of my clients have been laboring over their new Company Name. I always tell them to get their name right for many reasons. I am sharing below views expressed by other professionals too on the Significance of a Name and I have compiled this material from segments of articles authored by others for the benefit of my clients and also to help me conserve energy as I can just point them to my blog instead and hope they get it right! :-)
Significance of the Name of any Business!
(be it a Sole Proprietorship, Partnership, Non Profit or an Incorporated Entity)
Considering the importance of a good business name, it is amazing how little
time and effort many business people put into choosing their company’s name. This lack
of forethought and planning in choosing a business identity is akin to building a home
before checking to see if it is in a flood zone: At least, with the home, local governments
have developed laws to protect homeowners from this foolishness. Spending a little time
and thought about your business name BEFORE building your business may save you a
great expense later on.
time and effort many business people put into choosing their company’s name. This lack
of forethought and planning in choosing a business identity is akin to building a home
before checking to see if it is in a flood zone: At least, with the home, local governments
have developed laws to protect homeowners from this foolishness. Spending a little time
and thought about your business name BEFORE building your business may save you a
great expense later on.
Why is Your Name So Important?
Your business name is the first image that your business projects. It is what customers
will remember (good or bad) about your business that will either draw them to it or
send them to a competitors’ business. Assuming your business lasts for many years,
you will have invested a lot of time and money building it. Part of the value of your
business is the name. If you have branded the name, your brand alone might be worth
more than the assets of the business itself. How much are the names: Harley Davidson,
Star Wars, or McDonald’s worth? If McDonald's decided to change its name to Fred's
Burgers, it is obvious that the company would be worth far less than it is now. Why?
Because, McDonald's spent a lot of time and money branding their business name on the
public’s mind. Further, just opening up a McDonald’s restaurant guarantees the
company a minimum amount of revenue because of its name.
What You Should Look For In a Name
So, what should you look for when choosing your business name? Ask yourself the
following 10 questions about your business name:
1.) Is it easy to remember?
2.) Does it tell people what your business does?
3.) Is the meaning confusing?
4.) Is it unique?
5.) Will your business or your market outgrow the business name?
6.) Can it be branded?
7.) Is anyone else using this name?
8.) Is it trademarked?
9.) Can you trademark it?
10.) Can you protect it in other ways?
An effective branding system starts with a great name. Unless you can put a name to
your company that will distinguish it, you cannot proceed with creating a brand. It is
similar to a newborn child, who must first be named before he or she can create their
unique identity. Only then can you proceed with succeeding methods that are aimed at
creating your mark in the market and enabling your business growth.
Creating a Name: Naming a company or brand is not as easy as naming a newborn child.
Indeed, multiple factors come into play such as producing a name with a good recall on
the consumers, the type of product you have in your business, its features and usage, and
other benefits that consumers can experience from using it. That is just one aspect of
what you need to consider when naming your product or brand.
The other end of the formula requires you to envision yourself in the mindset of the
consumers. How is the product useful to me? And what benefits can I get from using it?
Add to that all other competing businesses that offer the same product as you do. These
are all pointers you need to look into if you want to get a share of the market and increase
sales production.
your company that will distinguish it, you cannot proceed with creating a brand. It is
similar to a newborn child, who must first be named before he or she can create their
unique identity. Only then can you proceed with succeeding methods that are aimed at
creating your mark in the market and enabling your business growth.
Creating a Name: Naming a company or brand is not as easy as naming a newborn child.
Indeed, multiple factors come into play such as producing a name with a good recall on
the consumers, the type of product you have in your business, its features and usage, and
other benefits that consumers can experience from using it. That is just one aspect of
what you need to consider when naming your product or brand.
The other end of the formula requires you to envision yourself in the mindset of the
consumers. How is the product useful to me? And what benefits can I get from using it?
Add to that all other competing businesses that offer the same product as you do. These
are all pointers you need to look into if you want to get a share of the market and increase
sales production.
Do's and Don’ts: Creating a business name can be confusing sometimes, either for lack or
excess of ideas that make it difficult filtering them out. Below are a few tips you should
consider when naming a business:
· Opt for memorable and catchy names instead of generic ones that are difficult to
register in the minds of the consumers.
· Never use names that literally describe the product. Go for creative ones.
· If possible, do not use geographical names because it limits the scope of your
business. However, this is an advantage if your product is associated with a given
locale or affinity.
· Refrain from restrictive names to save you from trouble in the future in case you
want to expand your line of business.
· Keep them short so as to produce memorable names.
Name as Part of Branding Strategy: A business name is not just a name; it represents your
business identity. And in the business community, the way you represent and project your
image is crucial in determining success. This is because perceptions, more than the actual
value of the product or services, is essential in helping consumers decide on whether to
buy that product or not. On top of the brand itself, it makes association with the company
and its reputation. That is why most businesses spend and invest most of their efforts on
building a trusted business reputation that will strengthen the trust of consumers on their
company.
Your business name essentially determines how far your company will go in this
endeavor. When people encounter your business or brand, you have only a meager
amount of time to catch their attention. If you fail to do so, then you would have lost a
potential customer. More than just intriguing, a good business name is one that compels
your target market. If you can produce one, then it will surely catapult your business to
your desired commercial success.
A good business name is not just a superficial aspect involved in branding but rather a
legitimate business factor that must be taken into consideration.
As can be envisaged a name is very Significant for a Business. More so in today's realm than ever before!
Thanks for taking time to read and be informed about this important topic and piece of information when you are about to embark on an exciting new business venture. If you are so inclined please also feel welcome to comment on this compilation and the blog!
All the very best in your exciting new and bold venture!
XXX-XXX
Compiled by Koshy P.George, CPA resident of Silicon Valley, CA and includes his own views along with views of other professionals included in other published articles.
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