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Choosing a Company Name: 5 Things You Need to Know
What's in a name? As it turns out, a lot. How to choose a company name that will resonate with customers -- and help establish your brand.
Posted 3/ 6 11 at 5:00 PM | 5 Things You Need to Know, Advertising & Marketing, Starting a Business, Online Business
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Choosing a solid, compelling name for your company is one of the first -- and probably one of the most challenging -- tasks you'll face as an entrepreneur. After all, a great deal of a company's success can ride on its name. An imaginative name that speaks volumes about the value of your products and services can stick in the mind of everyone who hears it. On the other hand, an ill-chosen name can push your business into obscurity and cost time and money to rebrand down the road.Looking for a head-turning company name that resonates with customers? Here are five things you need to know.
1
Identify what makes your company unique.
Small-business owners need to pay attention to what other people in their industry are doing and find ways to differentiate themselves -- and that starts with their company name. The most successful companies are able to highlight their uniqueness and solidly go in their own direction. When naming a company, you also need to have a clear mission statement. For example, when Google founders Larry Page and Sergey Brin began, they wanted to name their search engine "Googol" in reference to the vast amount of information it could search, since a "googol" is the number 1 followed by 100 zeros. They felt it perfectly reflected their mission to organize the infinite amount of information that could be found on the Internet. However, an investor misspelled the name "Google" on their first check, leading them to change their name, which of course now has become not only an iconic business name, but also a verb used to describe the process of finding anything on the Web.
2
Embrace creativity.
Using imagery that creates a poignant mental picture is key to developing a great company name, according to Alexandra Watkins of Eat My Words, a San Francisco-based business-naming firm. Watkins says Eat My Words has a "Scratch and Smile" test to gauge a name's greatness. "A name should make you smile instead of scratch your head," she says. Watkins emphasizes that company names are better when they aren't overly business-oriented, and that stepping outside stuffy conference rooms is the only way to create names that will strike an emotional chord and make real connections with customers. "Take Verizon or Accenture," Watkins says. "It's hard to be fun with that. We're so bombarded with words, advertising and TV that names really need to stand out by making emotional connections. People should smile or think to themselves, 'That's clever.' The name and the brand should empower them."
Creative misspellings aren't always effective and can be confusing to potential customers and even bungle Internet search results. For example, the vitamin company "Alterna Vites" always gets its name changed to "alternatives" in a Google search. But according to Watkins, there are some exceptions. "Spanx is really fun and playful," she says. "I love that name. It works."
Creative misspellings aren't always effective and can be confusing to potential customers and even bungle Internet search results. For example, the vitamin company "Alterna Vites" always gets its name changed to "alternatives" in a Google search. But according to Watkins, there are some exceptions. "Spanx is really fun and playful," she says. "I love that name. It works."
3
Do your homework.
This means making sure a company name is legally available and doesn't translate awkwardly into other languages or is in any way offensive. Check to see that no competitors have names that are too similar. In addition, research domain names to see whether the
4
Your name must work online, too.
According to the Small Business Administration, entrepreneurs are best served by making their domain names as close as possible to their trade names. Companies like Amazon.com
5
Consider legal requirements.
The SBA also advises entrepreneurs to be careful about the legal requirements of their particular type of business before naming it. Choosing a business name goes beyond being creative and knowing your customers. You need to determine which type of business structure you'll use -- sole proprietorship, limited liability company (LLC), general partnership, C corporation or sub chapter S corporation -- and figure out your limitations for naming. For example, in some states, unless filing another name as a trade name or pseudonym, a sole proprietor has to use his or her own name as the business name. You'll also need to decide whether you'll use the full name you choose for your business as the official trade name, or shorten it. If you want to go nationally or internationally with your company one day, you also need to research beyond your immediate area for other companies that might have the same or similar names, as some businesses only file their names locally.
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Comments (Page 1 of 1)
So what clue does anyone get that Eat My Words is a naming company? Or that GoDaddy is a web name registry? (Their name alone would keep me from doing business with them.) I've made the mistake of giving a company a name that was too generic. For another company, we used the names of the three partners, which became problematic after two of them left. (It would have been even more problematic had either of them wanted to use his own name for a similar business.) Differentiating may work -- but what clue to differentiation is provided by Amazon or Monster? They became household words because they were short, memorable, and backed by enormous marketing budgets. Ms. Rogers's five points all make sense, but her examples suck.
Normally, that would be true. However, Hand Job is located at the exact epicenter of the gay male capital of the Western World, at 18th and Castro, in The Castro Neighborhood, San Francisco, USA. Their clientele are almost exclusively residents of the neighborhood and tourists from around the world looking for an authentic San Francisco experience. In this location, your concerns are completely outweighed by the huge positive reaction to the name's very transgressiveness! It's a brilliant name - in its market. They make huge money selling T-shirts and other branded swag. What more could a business ask for in a name?
Or rather, that post up there was in response to AzUSA48th, not hinneni.
You may want to check the crediblilty of your resources before using in an article. "Hand Job" is one of those "different" names Eat My Words created to brand a nail salon. Different yes - However, most women find this type of name very offensive and in poor taste.
I would add this advice to naming your company: 1. Avoid the lower end of the alphabet. Many pages still list links to companies in alphabetical order. My company, Windmill Works, isn't found until a person scrolls down to the bottom of the page. 2. Try NOT to name your company something that your company does NOT do! We have nothing to do with windmillmills - we create educational software; customize online games to drive traffic to websites, develop games for museum kiosks, and create children's ebooks. The "windmill" reference refers to the Don Quiote character in "Man of La Mancha" which I was watching on the night I decided to start my company - "to dream the impossible dream" and all - iiiyiiiyiii! Your name doesn't need to reflect what you do (exp. Google) but it certain should not reflect what you DON'T do! (I wish someone had told me) 3. (an aside) If you purchased a domain name that is more appropriate to another company, you might want to put that name up for auction. With the increased interest in alternative fuels we might just sell our www.windmillworks.com name and change our company name to reflect our product, (If you sell windmills, email me, we'll give you such a deal).
Naming is still an art, not a science.
Even the big naming /branding companys use random character generators as part of their process. I've found Keyword Research to be of some help in getting the creative ideas flowing.
Despite the naysayers above, I enjoyed the article on Choosing a Company Name. I enjoyed it so much, in fact that I wanted to print it out so I could keep it in my files. Imagine my dismay when, after two attempts, I was unable to print out the info I really wanted but was forced to waste time and ink on colorful, elaborate and unwanted ads. Very Disappointing.
Sorry, this post was in response to Azusa48th, below, not you.