Choosing a Business Name: Four Factors to Consider
Starting a business is an exciting undertaking, and perhaps one of the most exciting aspects is selecting your business name. But how do you decide on a business name that is meaningful, memorable, and comfortable for your potential customers? Below are four things to consider when deciding on your business name.
Look to the future.
While it’s obviously a good idea to make sure your business name accurately reflects your products or services, many entrepreneurs caution against taking too narrow an approach so as not to inhibit expansion or expansion of your business. For example, I might decide to incorporate my freelance publishing business: Sarah’s Editing Services, Inc. However, I also offer writing services, something my company name doesn’t reflect, and a potential client seeking writing assistance might pass up my favor list. from another editor, without realizing that writing is also a service that I perform.
(Of course, if you find yourself in a situation where the natural growth of your business is beyond the scope of your name, you still have options; you can simply change your name, Sarah’s Writing and Editing Services, Inc., or you can file a DBA under the company name: Sarah’s Editing Services, Inc., d/b/a Sarah’s Writing Services).
Do your research.
Most budding entrepreneurs know that it’s a good idea to find out if someone else is using their business name; many, however, are unaware of the complexities involved in such a seemingly simple task. It’s not enough to see if your business name is a URL (although that’s a great start), there are several places to look, and depending on your ambitions, possibly several more.
The first place to check is the Secretary of State’s office. You can search your corporate records to determine if someone else has incorporated their business under the same name (note that corporate endings are not a distinguishing factor in name availability: taking Sarah’s Editing Services, LLC, Sarah’s Editing Services, Inc. is not available). In some states, the search will return sole proprietorships and other database administrators; in others, you’ll need to check at the county level for additional DBA records.
Once you’ve determined name availability in your state, it might not be a bad idea to check availability in neighboring states that you could possibly expand to in the future. While a business name dispute in another state will not prevent you from incorporating, it will Will prevent you from using that name in the conflict state, if you choose to expand it. While you will of course be able to select a new name to use in that state, you will lose any customer recognition you built around your original business name.
The next place to check is the US Patent and Trademark Office to determine if someone has registered the same name as a trademark. This will not stop you from filing your incorporation paperwork, but you may run into other legal issues later on. (It’s always a good idea to discuss your choice of name with your attorney or legal advisor to make sure it’s completely clear.)
Don’t embarrass your customers.
Any good business relies on word of mouth to get the word out. So what’s the number one way to make sure no one talks about your business? Make it impossible for customers to figure out the pronunciation. If customers don’t know how to say your business name, they won’t and you’ll lose out on word of mouth, one of the cheapest and most effective forms of advertising out there.
Along these lines: Look at your proposed business name from all angles. Imagine the individual words stacked vertically on a billboard. Is there anything in the potential abbreviations or acronyms that might reduce your average pre-teen child to fits of giggling? “Peter’s Music Supplies” seems like a good straightforward business name at first glance, but at least keep in mind that you might be limiting yourself a bit when it comes to, for example, designing a logo based on the initials of the name.
keep it cool
Consumer fatigue is an ugly thing. Strive to find a name that makes you stand out from the crowd. Consider conveying an impression of strength, resourcefulness, his position at the forefront of his field, or any aspect of his business that you can emphasize that would make your business sound as fresh and desirable as it is. Make up a word, if you want to create your own particular nuance: Combining Latin words and derivatives is a great way to create a name that is unique, yet meaningful. And as an added creativity bonus, the more unique the name, the more likely it is that you can continue to use it without inhibition when expanding into new markets.