While it is important not to have a stupid name for your business such as The Golden Shower Restaurant or Eat Gas, many gaffs like these are local concerns, but nevertheless, there are investments that have been made, and it is important that a profit be made. Dave Clark from Bond-Branding.com, based in Farnborough, explains why the company name is strategically important, and it should be given some careful thought.
Ultimately, it is the product or service that carries the day, not the name. For example, what does Sony mean in relation to its product?
A company has to have a good product that people want to buy, and then it has to deliver good service, and a business strategy that makes sense and will get the company’s product well known in its marketing niche. Once that happens, the name will become linked with the product. When you are struggling to come up with a name for your new company, try a little brainstorming and use something that people will remember, perhaps tied to your product, but maybe not.
You do need to follow four basic steps, however to avoid costly and perhaps, embarrassing errors.
Be Sure To Check Out The Name With Your Authorities To Be Sure That It Is Not Being Used Already
Over 3 million companies are registered in the UK at Companies House, and over 400,000 new companies are added to the mix each year. This is why you need to do a little homework before you jump out and just pick a name. There may be new names under the sun, but most of the time there is the probability that someone has already come up with your name first.
Even if the regulator allows your name, if it is too similar to a larger corporate name, they may challenge you later if they feel that you are trading with their name.
You can also check on the list of sensitive words at Companies House which will give you the words that can only be used permissively from the authorities. Names that are too similar can also run afoul of the best intentions, so it is best to steer clear from names that are too similar to others already effective.
Ensure That Your Name Offers You Enough Room To Grow In The Future
It might not be a good idea to limit your business to a specific geographical area or line of products if your plans are ultimately to expand. A good example is that of the US company Atlantic Bell which later changed its name to Verizon after it had made several acquisitions. If you think more in terms of a larger outreach such as Jeff Bezos, who purposely chose the name of Amazon for his little online bookstore.
He could visualize beyond just books to a whole A to Z online store full of products with as wide a range and force of the Amazon River.
Make Sure That Your Name Is Not Going To Be Offensive In Other Areas And Countries
The supermarket in Finland that is named KKK may not find such a good reception outside of that country, and the company in Ghana called Pee Cola, LTD, may want to use another name elsewhere to market their refreshing drinks. If you are going to different areas or countries, be sure that you are correct in naming your product so as not to be offensive.
Don’t Involve Too Many People In Your Naming Process
Remember the old adage that too many cooks will spoil the stew. Not everyone will agree on a name, and if it is your company, you can get a feel from people, but ultimately you have to pull the trigger and make that decision. In the long run, the name is not going to make the company, but the company will make the name.
Citations:
- Rules of thumb for naming a business.
Amy Rice enjoys writing for new business start-ups, when not writing she enjoys gardening and swimming with her daughter.