Q: How important is the name of a business? Should
the name of a business reflect what the business does or is
it better to come up with something catchy and easy to remember?
-- Randy P.
A: What's in a name? When it comes to your business,
Randy, a lot more than you might think. In fact, deciding
on a business name is one of the most important decisions
you will ever make. The right business name can help you rise
above the crowd while the wrong business name can leave you
trampled in the rush.
With the economy in a slump and competition on the rise, now
more than ever it is important that you put considerable thought
into coming up with the perfect name for your business.
Unfortunately, this is a task that is easier said than done.
Itseems like all the good business names are either married
or. no wait, that's a different subject, but the analogy holds
true.
We live in an age when a business called "The Body Shop"
might repair wrecked cars or sell skintight jeans to teenagers,
so before you send your letterhead to the printer, consider
the following points to help you select the business name
that's right for you.
The first thing you should do is conduct a little research
to determine if the name is already in use by someone else.
You would be surprised at how many entrepreneurs forget to
research this point and open a business with a name that is
already in use. Check with the county clerk and the secretary
of state to make sure the name isn't already licensed for use or incorporated
with the state. Also check with the U.S. patent and trademark
office to see if the name is already trademarked, i.e., owned,
by someone else. Using another company's trademarked name exposes you to legal action by the trademark
owner. Even if your name is just similar to the trademarked
name, you may find yourself in court defending your right
to use the name. And odds are it's a battle you will lose.
If the name you choose is not in use, you should immediately
reserve the name with the secretary of state (if you plan
on incorporating) and apply for a trademark to ensure your
legal ownership. If you do not trademark the name someone
can come along later and attempt to steal the name out from
under you. Imagine spending years building up your business
only to havesome upstart trademark the name and engage you
in a legal battle over rightful ownership. This is one fight
you don't need, especially when the hassle could have been
easily avoided with a few bucks and a few forms.
Another important thing to consider is the domain name for
your business. The domain name is the website address a customer
will use to find you on the Web. Is the domain name for your
business name available? If not, is there a domain similar
to the business name you're considering?
You will undoubtedly discover that securing a suitable domain
name is actually harder than choosing a business name. Most
logical domain names are already reserved, but you might get
lucky. Keep in mind that domain names should be short and
descriptive, and preferably have the .com or .net extension.
You can use other extensions (I've even used the ".to"
extension on occasion) if necessary, just keep in mind that
you will need to put forth a little extra marketing effort
to promote the website address as people typically assume
a .com extension as the norm. Whatever you do, don't use a
domain name that is a confusing amalgam of letters and numbers that is
hard to remember and even harder for your customer to type
in.
One good way to approach the task of naming a business is
to do so from your customer's point of view. Your business
name should clearly define your offering and communicate your
message to customers. Put yourself in your customer's shoes
for a moment. If you were looking for a business that provides
your product or service, what would you expect that business to be called?
If you were in the market for computer parts, for example,
wouldn't you look for a business that has "computer parts"
reflected in the business name? Jim's Computer Parts may not
sound as snazzy as Jim's electronics emporium, but snazzy
doesn't pay the bills. Happy customers who quickly identify
you as the source of their purchase do.
The name of your business can also spark subconscious reactions
in a customer that may drive them to you or drive them away.
Words like quality, complete, executive, best, low-cost, and
on time often spark positive reactions in the mind of the
consumer. Words like cheap, discount, and used tend to create
negative emotions. You'll notice that no one claims to sell used cars
anymore, but the dealer lots are loaded with vehicles that
are "previously owned."
Finally, let's talk about things to avoid. Experts agree that
you should avoid using generic terms like enterprise, corporation,
partners, and unlimited as part of your everyday business
name. These terms are fine for the legal business entity name,
but are often too unclear for everyday use. Can you tell me
what any of these companies do: ABC Corporation, Big Dog Enterprises,
M&B Partners, and Discounts Unlimited sell? I didn't think
so.
Also avoid abstract names like Yahoo, Google, Monster and
Flip Dog (I am not going to list the names of the numerous
local high tech firms that have bucked this rule :o). Abstract
names will require a subtitle to explain what the business
does or an expensive marketing campaign that brands the name
into the minds of consumers. Unless you have deep pockets, I suggest you
go with a name that describes your business at first glance
and leave abstraction to the likes of Cher.
Finally, you should avoid hokey names, unless of course, you
are starting a hokey business. Crazy Dave's stereo shop is
a great name if the business is really run by Crazy Dave and
his personality is exploited in the marketing of the business.
However, if you want to be taken serious, then give your business
a serious name.
Would you go to Crazy Dave's House of Dentistry? Neither would
I.
