Setting up a new business is full of challenges. Among the most important ones is coming up with a name for your business. One thing you need to remember is that your business name matters. It’s what you build your face and public image around. It’s how people will remember you.
Is there a secret to finding a good business name?
In our opinion, there isn’t one single rule that is valid for all types of business. Instead, there are some common characteristics you need to follow when naming your company.
Here is what you need to keep in mind.
Shorter is sweeter. Think of some of the most successful companies – Apple, Nike, Uber, Airbnb, Google. They all have relatively short names. The shorter the name, the easiest it is to remember. It doesn’t need to be only two or three letters but if you keep it up to 6 letters, you are good to go.
- Make it easy to pronounce
Being short is not enough. Your business name also needs to be easy to pronounce. Stick to a name that could be easily pronounced when people see it on your website or other marketing material.
The opposite is also valid. Will people be able to write down your business name when you say it to them over the phone? If you need to tell them how to spell it more than once, you have a serious problem.
- Be unique within your industry
Make sure that your business name doesn’t sound like any of your competitors. It’s all right if there are other companies with similar names if they are in different industries. If your name is similar with your competitors’ names, your company will easily get lost in the crowd. This is not what you are looking for at all!
- Adaptable to new products, industries and markets
Think the big picture. Don’t make the mistake to choose a name that limits you. You may come up with a new product or service. Or you want to expand to a new market. What happens then if your company is named “Los Angeles Furniture”?
- Available to be registered and protected
Last but not least, your business name must be free. For a business name to be free, it means that you can register it and protect it. Every country has its law trademark laws and if you have no experience at all, you better consult with a lawyer about that
The bottom line
Your business name matters. Perhaps, it’s a secondary factor, but still it can improve your chances of success. According to a study published on behalf of the Society of Personal and Social Psychology, Inc. stocks with names that are easier to pronounce perform better than stocks with longer and difficult to pronounce names.
As we said, your business name is your part of your public image and it needs to be as welcoming as possible. If nobody can pronounce or spell your company name, you’ve created an invisible barrier between you and your potential customers and partners.