What to Keep in Mind When Choosing a Name for Your Business |
Posted: October 13, 2020 |
The value of your business’s name is far more important than what you may believe. The aim is to use it to define your business, make it easier for your customers to find and talk about it. Research by the Department of Psychology at Michigan University has proven that the less mind processing a name requires the more familiar its stimulus is. It leaves a positive perception, no matter the product to be named. Therefore, companies with easier names remove an important hurdle to becoming successful because the less processing a name requires, the more familiar and comfortable people feel with it. The business name you choose creates a tie between your company and its consumers. Important steps to take when naming your businessA business name generator can help you name your business if you are stuck. However, you may already have an idea or may feel like putting your creativity to work. After deciding on a name, you will need to consider your business branding strategy, and then to follow the rules of naming your business according to your business structure. How to name your business?If you have wondered how to come up with a business name the best solution is a brainstorming session. Set aside up to an hour of your time and grab a pen and paper. You will need to have at least 4 potential names at the end of the session. There are various brainstorming techniques that you can use. One clever idea is visualizing your business as your customers would see it and finding words that describe it. Other ideas include word-association, using personal experiences, rhymes, acronyms and synonyms. Many people also use the time allotted to the exercise to free write as many ideas to analyze later. Tips on how to name a businessA name must have power, leave an impression, and communicate your business strategy to your target audience. Businesses with distinctive and catchy names attract more attention and are remembered better by customers, even when the name has nothing to do with the product, e.g. Amazon and Apple. Don’t rush the process Even though you have the choice to change your business name at a later stage if you don’t like it, rebranding a business can cost you time and money. Rebranding usually requires a change of logo, marketing materials, domain name, and requires you communicate it to your customers. Therefore, naming a business requires your full attention and a bit of time, so you can come up with an inspiring name that will be memorable. Define your organization To define your mission, values, and vision, you need to understand your business. A well-developed business plan could be the best source of inspiration on how to name your business. Simplicity makes it easier to remember a name The shorter and simpler the name of your business is, the easier it will be for your customers to remember it. It should also be easy to pronounce, and acronyms are often a good choice. Keeping the name short is also beneficial for online businesses because consumers prefer short domain names - they are easier to remember. Describe your business or share your unique story Even though some successful companies have names that don’t reflect their product, it is always better to be descriptive. Tie the name to the reason why your business exists and what it offers. Naming your business cleverly can also allow you to share the unique story behind it with your consumers. Your name may not be striking Even though using your name might sound nice, branding experts don’t recommend you use it because it can limit you elsewhere, especially if you are planning to expand the business elsewhere. Branding strategiesOnce you have decided on a name for your business, you will need to decide on whether you will use the legal name as the brand name as well. The legal name of your business is listed on the formal documents, but you also have the option of choosing a DBA. This is the name you will use to market the business and how your customers will call it. Some companies also choose multiple brand names. Business structure and naming rulesThe simplest business structure is a sole proprietorship, and this type of business usually operates under the name of the owner. Sole proprietorships can apply for a DBA. If your business structure is more formal, like an LLC, there are some naming rules that you must follow. Even though they differ from state to state, there are some common ones. Some words are restricted and require additional paperwork or licensing, the name cannot be easy to confuse with a government agency, and the name must include the phrase “limited liability company” or any of its abbreviations. Business name searchFinally, once you have considered all the above tips and have decided on a business name, do a business name search. This will help you ensure the name or a similar one does not already exist in the state you are doing business in. Now that you know all the tips and rules on how to name a business, give your business name the time and attention it needs so it can resonate and get the attention and success it deserves.
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