Choosing a Business Name
Date: 03/05/2007
Choosing a Business Name
Choosing your business name is probably one of the most important things you have to do when starting a business – sadly, many do not take enough time and end up changing it after a while – resulting in the unnecessary costs of changing business cards, stationery, informing clients, etc.
Take your time in choosing a name. It has to last for the whole time your business will exist, (which could be your lifetime?) and your business existence could well rely on what you call it. Many companies have failed simply because of a poor choice of name. Rarely can a company change its name cost-effectively once the original name is used.
Avoid using initials. Initials don’t generally convey a comfortable feeling about businesses and their products.
Brainstorm with others to come up with a name. It’s often amazing what they might suggest that you would never have thought of.
Don’t try to be smart by using a name that is similar to a famous business name. People will see right through you, and see what you are - a potential copycat! Check that your name is not similar to others in the same industry, otherwise you might have it taken off you if they have the name registered, and you don’t. (Quite a cost, if you’ve already made your business cards and letterheads, etc.)
Avoid complicated words that people cannot spell or pronounce easily. If someone has to ask you how to spell it or pronounce it - it’s a clear warning sign for you. Consider using a name that starts with “A”. Many industry directories and Yellow Pages, for example, list in alphabetical order. If you company begins with a “Z”, you can guarantee you’ll always be last on any list.
Check that your name doesn’t mean something bad in a foreign language if you are dealing across international borders. There have been many instances of names withdrawn from the market place because it was found to have nasty connotations in a particular language.
Consider made-up words. (e.g. Kodak.) Although they may convey neither positive or negative perceptions, they are usually a lot easier to register.
Use the name on a few potential customers to see what they think. You need to make sure the name doesn’t create any bad feelings or negative impressions.
Consider using all capital letters. This makes the name stand out in blocks of text.
Consider creating a name that gives people a clue about who you are and what you do. (William George Web Designers may be better that WG Design?)
Ask yourself whether the name sounds right for the image you are trying to project?
Check that your name is legal - some names are certainly illegal. For example, you can’t use Ltd unless you are a limited company, and even then, you can only use Ltd on the end of the company name. It’s also illegal to use a name that creates an impression that you are attached with a government authority. There are also around 130 names that require approval, such as the words British, Royal, National, Charity and English.
Keep the name succinct. Don’t be smart by calling yourself a mouthful of words like The ABC Weatherboard Roofing Tiling and Fencing Company of the United Kingdom.
Finally, check the Companies House web site at www.companieshouse.gov.uk where you can search (for free) what company names are already in existence. (Once there, click on the ‘company information’ button.) What’s the point of choosing a name that already exists? Besides, if it exists, then the chance of the registered company suing you is extremely high – and the longer you use a name that is registered to someone else, the higher your legal bills may be down the track. (The other company might sue you for loss of business because you’ve been using their name!)
