Definition: The name by which people know your business. Different from your
dba--which is the legal name you register for your business, this
is the name you'd use to advertise and sell your products and
services.
What's in a name? If you're in business, the name of your
company is probably one of your most valuable assets. An effective
name is one that establishes a strong identity and describes the
type of business you're conducting. It's not unusual for companies
to go through one or more name changes as they grow. Name changes
can reflect a change in the focus of your company or a change in
the market. In his early years in the footwear business, Philip
Knight called his athletic shoe company Blue Ribbon Sports when its
primary business was as a U.S. distributor for Japan-based Onitsuka
Tiger. Later, Knight decided to market his own line of shoes, which
he named after the Greek goddess of victory; he eventually changed
the name of the company to Nike Inc.
Name changes may also be necessary when conflicts arise with
names of other companies in the field as you expand into new
markets. eBay founder Pierre Omidyar originally called his online
auction service Auction Web. Later, trying to come up with
something catchier, he picked Echo Bay. When he tried to register
the name for his website, however, he found that echobay.com was
already taken. Omidyar picked eBay from a list of available URLs
that were similar to Echo Bay.
Choosing a name for a company can be the first step in
developing a new identity for the business and establishing a new
image. It's the first impression the public will have of your
growing company. Today, coming up with a good business name is more
difficult than ever because many of the best names have already
been trademarked. But with advertising costs and competition on the
rise, a good name is crucial to creating a memorable business
image. In short, the name you choose can make or break your
business.
Start by deciding what you want your name to communicate. To be
most effective, your company name should reinforce the key elements
of your business. The first and most important step in choosing a
name is deciding what your business is.
Should your name be meaningful? Most experts say yes. The more
your name communicates to consumers, the less effort you must exert
to explain it. Specific names make sense if you intend to stay in a
narrow niche forever. However, if you have any ambitions of growing
or expanding, you should find a name that's broad enough to
accommodate your growth. How can a name be both meaningful and
broad? Descriptive names tell something concrete about a
business--what it does, where it's located and so on. Suggestive
names are more abstract. They focus on what the business is about.
Would you like to convey quality? Convenience? Novelty? These are
the kinds of qualities that a suggestive name can express.
When choosing a business name, keep the following tips in
mind:
- Choose a name that appeals not only to you, but also to the
kind of customers you're trying to attract.
- To get customers to respond to your business on an emotional
level, choose a comforting or familiar name that conjures up
pleasant memories.
- Don't pick a name that's long or confusing.
- Stay away from cute puns that only you understand.
- Don't use the work "Inc." after your name unless your company
is actually incorporated.
- Don't use the word "Enterprises" after your name; this term is
often used by amateurs.