Are you starting or running a business? If yes, then probably you must have a fair idea about how important a brand name is for your business. This brand name in legal parlance is called a trademark. Now what is a trademark? In layman’s language, a trademark is merely a brand but offers many exclusive rights.
In the era of dynamic businesses with growing competition, if you don’t create and protect a distinctive brand image, you will be lost in the sea of competition. Many businesses have failed in the past largely due to a name that just didn’t work, so it’s important to get this right. Hence, Choosing a good business name is very important if you want it to be successful as it is a key to differentiating you from your competitors. Customers associate a business name with the value it provides to them. So, here are the top three useful points on how to come up with a winning name for your business:
- Avoid using hard-to-spell names
Choose a name that people can spell and pronounce. Business names that are long, hard to pronounce, or difficult to spell don’t work. Also, it can be annoying for the general public and it can be deadly for a business as well.
Businesses should try to stick to simple and memorable words. Avoid using hard-to-remember acronyms as you don’t want potential customers getting confused about how to find your business online. Many big companies use acronyms of their name, like IBM and KFC. But at the start of your business, when your goal is to establish your brand, acronyms will only confuse your potential customers. Also, there’s a great possibility that your business acronym will match with someone else, making it very difficult for you to rank in search engines. Hence, brand names should be simple in terms of length. The shorter in length, the better it looks. Limit it to two syllables. Avoid using hyphens and other special characters.
- Don’t limit your business name
When a business chooses a name that matches the town it’s located in— Montreux, for example. But what happens when the business decides to expand to Geneva? If you choose a brand name specific to a location then you may find yourself with an inappropriate name as soon as you expand your offerings. The same applies to names that describe your services and products.
Picking too narrow brand names may cause you problems down the road. Imagine if Jeff Bezos had picked the name “OnlineBooks” instead of “Amazon”. The “Online Books” name is not suitable for selling electronics, clothing and other items that Amazon is selling right now.
Make sure your name allows your business to grow and change. Avoid picking names that don’t allow your business to move around or add to its product line. This means avoiding geographic locations or product categories in your business name. With these specifics, customers will be confused if you expand your business to different locations or add on to your product line.
- Don’t pick a name similar to a competitor’s name
While looking for a unique and not too vague or generic brand name, businesses should keep an eye out for competitors and avoid choosing a name too similar to other businesses in the industry. Having a similar brand name to your competitor’s brand name appears unoriginal in the eyes of the general public. It can also mean potential customers confuse your business with your competition making it more difficult to get proper separate branding. It’s better to avoid business names that could confuse your business and another similar type of business in your geographical area.
At worst, the other business could accuse you of trademark infringement, and you could find yourself fighting a lawsuit. But even if that doesn’t happen, you want your business to have its own brand and identity, and being confused with a competitor is seldom a good thing. To prevent similar brand names, your business must conduct an internet search over the Trademark Office Database for names that have been registered as trademarks. When you’re searching, be sure to check alternate spellings and abbreviations.
To sum it up, you can’t have a business without a business name. Every business wants a name that stands out from the crowd and can communicate what services it offers while being easy to remember and unique. Businesses should come up with 5 or 10 names and get feedback from the target audience as well. Because finding a business name is the first step towards building a brand. This first step is important as well. Selecting the right name for your business can have a significant impact on success. The wrong name can do worse than fail to connect with customers; it can also result in insurmountable business and legal hurdles. In contrast, a clear, powerful name can be extremely helpful in your marketing and branding efforts.
