Selecting a name for your new business is not easy. A name does more than identify your company; It tells customers who you are, what you do, and more than a little about how you do it. Your name differentiates you from your competitors, piques consumer interest, and invites further investigation. Better make sure you do it right, don’t you think?
All entrepreneurs make mistakes. Thrilled with a fledgling business, they might choose a name that they THINK evokes thoughts of coming into their own company, training their sales team to be the best, ensuring that every venture turns out to be amazingly successful, and makes them sound so good that you just can’t wait to hire them. With poor planning, they might inadvertently pick a name that DOESN’T say any of those things to any of their potential customers.
It’s important to pick a name that allows a potential customer to go by name alone to determine at least some bit of information about the company or the services it offers. If the name says nothing then it will do nothing for you.
How do you come up with an effective name? Consider these six elements:
An Effective Name:
1. Tells Who You Are: Your name should reflect your identity. This is an essential aspect of branding. You’ll be promoting this name, getting it in front of as many eyes as possible as often as possible. How do you want the public to think of you?
Sometimes that can mean integrating your personal name into the name of your business. This is very common in professions such as legal, medical, and accounting.
Others prefer a more descriptive name. One successful small baker runs her business under the name “The Cookie Lady” because that’s how her first customers identified her. Thus her business name was born.
2. Tells What You Do: It’s incredible how many company names give little, if any indication of what type of work the organization actually does. Take the following examples:
- Smith and Sons
- Hulbert Brothers
- Only One
Can you tell me what any of these companies does? Of course you can’t. They’re relying on customers already knowing who they are which can be a tricky proposition for new businesses. The only way this can work is if they’re going to rely on having their name found in ‘context’, such as a yellow pages or on-line business directory. Not a good assumption to have.
3. Tells How You Do It: Words are very powerful. By carefully selecting what words you use in your name, you can convey a great deal about your company’s image. Consider the names of three different massage and bodywork centers:
- Champlain Valley Therapeutic Massage
- Clouds Above Massage
- Speedy Spa
All three companies are providing the same service: massage therapy. Yet the first appears to favor a more medical approach, the second, a dreamy, luxury approach, and the third focuses on fast service. Their atmosphere and attitude towards their service is how they’re choosing to name their business. Keep that in mind for your business should you choose this route.
4. Differentiates You From Your Peers: Your company name is the first opportunity to tell customers how you differ from the competition. This can be done by emphasizing what makes you unique, pinpointing what aspect of your products and services can’t be found anywhere else — or that you do better than anyone else.
Consider the massage therapy example we looked at in number three. Each organization clearly has a different focus and approach to their customer base. They’re attracting different types of clients, who are seeking fundamentally different approaches. All of which is conveyed in less than five words.
5. Piques Customer Interest: Creating customer interest is an art and a science. Think carefully about your target audience. What qualities of your services are of the greatest import to your customers? What kind of words are likely to appeal to them?
Emphasize the important qualities in your name. For example, busy homeowners are drawn to the inherent promise of speed offered by “Bob’s Instant Plumbing” while a reader in search of a good mystery will gravitate toward “Crime Pays Books”.
Word choice is also important. Two yarn shops can both specialize in specialty fibers, but the one who labels themselves “All Hemp All the Time” will draw in a decidedly different crowd than the one named “Natural Beauty: Organic Yarns”.
6. Invites Further Investigation: Customers are funny creatures. What one group finds to be funny and engaging turns another group off. You want your name to be inviting and approachable — as those qualities are perceived by your target audience.
Make sure you’re not limiting yourself to one segment of your target audience. If your product or service appeals to both the young and the old, be aware of your name not just being appealing to one segment by not letting your name intimidate customers. Some industries are more formal than others, but adopt pretension at your peril.
These are just six steps that can help you name your company and set you off on the road to getting started with your new venture. Once you establish an identity, it’s always easier to take the next step to moving your business forward.
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