HOW TO NAME YOUR BUSINESS

HOW TO NAME YOUR BUSINESS

One of the first, and most vital, steps every new business takes is the selection of a name. Choosing the name of your busness wisely will have much to do with its subsequent success. That's because people will make critical decisions simply based on your business name. It is true that people make snap decisions about other people based on simple 7-second first impressions. After those first few moments, it gets pretty hard to change someone's mind about that person later. In the same way, people make snap decisions about your business based on first impressions. The first thing many people see is your name. With a good name, you will warrant further scrutiny. But if you chose a name poorly, the consequences can be disastrous. An early note of caution is needed here. In cases where the business is already established, be careful about changing the name. You may lose the equity which has already been built and established. However, if you need to come up with a new company name, here are some guidelines to help you. Reflect your target niche. First, your business name should clearly reach your target audience. Is your offer or claim understandable? Two good name selections are the 7-11 and Hot 'N Now stores. Your name should also fit your logo and slogan. In addition, clarity about your desired geographical service area helps people understand your business. All-City Shoe Repair tells me that they will fix shoes anywhere in my community. That's pretty clear! However, don't use any geographical descriptions if that could ever become a limiting factor. For example, would a company called Eastside Bookkeeping ever do work for someone located downtown? In addition, geographical names tend to get overused. To see what I mean, go to the white pages of your phone book and see how many business names start with the name of your city or state. Clarify what your business does. Your business name should let the customer know what you do. Although Aaacme Services, Inc. may be listed first in your section of the Yellow Pages, a business card given to a new acquaintance doesn't tell the receiver what your business does. If a person can't remember why they have your card, they will quickly discard it. Two good names are Jiffy Lube and Fast Signs. And if you can attract your customers properly in the first place, they'll probably never even notice that they passed three of your competitors on their way to see you. Keep the name simple. Keep your business name short and easy to say, spell and remember. Avoid tongue twisters like Watson, Smith, Howiczak, Elton and Elton. Imagine the poor secretary who has to write down a message from that company! Also avoid acronyms or names using initials unless they will mean something to your typical customer. If IBM had been started using that name instead of International Business Machines, it is doubtful that they would have been as successful. Letters mean little or nothing to your customer, and as a result, are quickly forgotten. IBM didn't begin using that name until the marketplace had already bestowed the shortened name upon them. Keep the name flexible. Don't let your name restrict you to a field that you may grow out of. Make the name expandable. As an example, Canned Software Company may sound good at first, but what happens if you decide to get into the computer hardware business? Or what if Mr. Smith ever leaves or sells Smith Watch Company. If it fails, what does that do to his reputation? Avoid trendy names. It seems that every few years, some new naming trend makes the rounds. How many times have you seen some type of name using Something-a-Rama or Something 'R Us? After these fads run their course, you will be left with a stale and outdated name, and that's probably what most people will think of your company too! Avoid amateurish or silly names. Names like Bambi's Secretarial Service typically will not generate the confidence of your potential customers. If I were looking for a professional service, I'd be much more inclined to call ASAP Secretarial Services. For the same reasons, avoid silly names. They will wear thin very quickly. Curl Up and Dye may sound cute now, but after six months, you and your customers will become very weary of the joke. Is it unique and can it be protected? You want your name to stand out in front of your customers and prospects. Avoid names that are close, or even similar to your key competitors. If all your competitors use variations of XYZ Janitorial Supply, position yourself differently with a distinctive name like EnviroSafe Products. Finally, take steps to be sure that your name is protected and preserved in your marketplace. Similarly, be sure that you are not encroaching on anyone else's trademark or identity.