What is a Business Name?
A business name is simply a name or title given to a particular business to serve as identification. Also a business name can be known as a trade name which is used for trading commercial products goods and services. Naming a new business is one of the numerous processes involved in setting up a new business and there are a lot of factors to be considered when choosing a business name.
In fact, finding a business name is quite a crucial and herculean task. Some companies even spend thousands of dollars just to have their prospective names tested. They go through great lengths in order to assure the universality of the company name. They conduct surveys in order to confirm that the name does not reflect any biases, does not discriminate any particular group and conforms to everyone. This is especially true for global companies.
Companies have to think of something catchy and easy-to-remember. It has to be one that will give consumers a good idea of what the business is about. A business name is one the company will carry for a long time. That is why it is important that a lot of time and thinking be allotted to this process.
Importance of Naming a Business
Naming a business is very important as it serves as a means of identification. And just as I said earlier, it is your business name that sends a message about your business ‘to the outside world. Below are the importance of a business name.
- It is important to name a business because it represents your business identity.
- It compels your target market
- It is makes your business memorable to potential clients.
- It helps your business to stand out competition and draws customer’s attention
- It is an essential component for branding and brand identity creation
7 Tips on How to Choose a Good Business Name That Stands Out
Most of the time, most entrepreneurs prefer business names that have a personal touch to it; because it has a connection to the owner. It could be a name, a word or something just coined by the owners of the company.
The business name can be something thought of prior to the creation of the business or it may be a long list of names to choose from. When the latter is the case, some helpful tips on how to choose a business name may help trim down the list.
- Choose a business name that’s easy to remember
A business name should be simple and easy to spell. You do not want your prospective customers scratching their heads while trying to remember the name of your store. A name may appear like a mere emblem to the business but because it does not necessarily reflect the quality of the company’s services but it is possible that consumers may decide to switch to competitors because of the mere fact that they cannot remember the name of your store.
- Choose a business name that’s unique
Choose a name that will set you apart from your competitors. Most of the time it is not recommended to follow name trends in an industry because of the obvious fact that it can create confusion among consumers.
- Spice up your business name with some creativity
Use a witty catch phrase along with an equally clever company name. Catchy phrases come with the company name like eggs do with bacon. These two are an inseparable pair. A few powerful words put together as the catchy phrase can really make or break your company’s popularity.
Think of it as the best platform for advertising the company, so use this opportunity to your advantage. A lot of companies actually make a mark in the industry because people remember them for their catch phrases.
- Choose a business name that reflects your services
Choose a name that people can easily relate to. You do not want a name that people will find intimidating. But of course, you have to consider the product you are selling and the company’s potential target market. If it is a high-end gadget store you are trying to build, then the name should be something classy and modern.
The company name should be compatible with your company’s character. For instance, if you are real estate developer, your business name may be: Johnson’s Real Estate Developers Co. The essence of this type of business names is that customers can know the type of services you offer by just seeing your business name.
A name is the company’s identification; it also carries with it the company’s reputation. So do not use pun or foul words when choosing a business name. Some companies employ pun in their names and they are able to get away with it. Sometimes it can work to the company’s advantage – especially if it relates well to the product. But this approach can be quite tricky.
In conclusion, the methods on how to choose a business name are flexible. Not one style can be applied for all industries. Just always to remember that with a good business name does not come without the duty to provide customers with excellent service.