Naming your business is one of the most important decisions you’ll have to make when setting up a business. The name of a business should be like a reference point, something to remind the market about its visions and goals. It represents the branding and image of your company, either giving it a classy or trashy first impression.
When naming your business, avoid mistakes that would make potential investors or customers reluctant to having anything to do with it. Although you can always change your business name even after filing your legal paperwork, you will have to spend money unnecessarily. So, it is essential that you choose your business name correctly to avoid having to go through the stress of changing it afterward.
Here are some common mistakes you need to avoid when naming your business:
Using plain names
Avoid choosing a name that sounds like plain Jane, especially when you are new to a market of already established products and inventions. You need to show the market that there something new in town worth checking out and your business name is what will spur people to check it out. The title needs to be unique but not meaningless.
Asking for everyone’s opinion
Too many cooks spoil the broth is an old saying that is still logical. When you get too many views on an issue, you are more susceptible to make a wrong decision compared to if you had limited the number of people you seek their advice.
When naming your business, you do not need to involve everyone you know, such as your teammates, family, friends, or clients. Because at the end of the day, you’ll end up choosing one name, so what’s the point of involving numerous people?
Also, if you are going to call a board meeting asking all your employees for suggestions to give the company a name, then prepare to hear a boring name or see people vying for personal recognition and yet giving too “careful names” that would not stand out.
If you think the input of others is necessary when choosing a name for your business, then you’ll have to select critical decision-makers that have the interest of the company at heart. Better still, ask people who have a successful business or those you don’t owe any obligations.
Using your locations name
Some people name their businesses using names their state, region, or city’s name probably because they don’t have the long term vision of expanding across national borders.
For example, Kentucky Fried Chicken was probably named so by Sandlers because he only has the vision to sell around his neighborhood. However, as the business expanded, they had to stick with the abbreviation KFC so as not to confuse customers who do not live in the region and to ensure that they keep growing.
When you use an area in your city or region as part of your business name, people who do not leave in the same area might have the opinion that your products or services do not cover other areas even if you had the plans to cover them. This confusion will lead to the loss of potential customers, which may be part of your business. That is why you need to use your foresight when naming your business.
Using a complex name
While you should not use a common name that does not stand out, it is also essential not to use a complicated name such as one that is too hard to pronounce, puzzling, or hard to spell. Potential customers and investors are likely not to take the title seriously, especially if it comes from an ancient language such as Latin or Greek.
However, it all depends on your potential clients or customers. If they are knowledgeable and enlightened, they may appreciate the time you took out to research on such a name. However, if you are going to open typical businesses like a hairdressing salon or ice cream shop, then using such name will make your business look like a cult gathering
Using a name without meaning
Every business name should have a meaning that depicts what the company has to offer. When you have a name without a purpose, you’ll have to spend lots of money on advertising to tell customers what you intend to achieve. Moreover, you may need to spend more funds if you decide to do a rebranding in the future.
For some companies who already have a website with awkward or misspelled domain names, they try to use the same domain name for their business name. For example, because the name physicalfitness.com is no longer available to use as a domain name, you then replace the “phy” with “F” and it becomes Fisicalfitness.com. You can always get creative and look for another name that will still represent your business without having to resort to misspelled names.
Refusing to change the wrong name
When you notice a title you’ve chosen for your business doesn’t suit the overall brand, there is no reason why you shouldn’t change it immediately. Some companies will feel that it’s something clients will overlook. However, you need to understand the importance of paying attention to details. That thing you think people wouldn’t mind is the very reason they’ll call for your head.
If you hope to experience business growth and expansion both nationally and internationally, you must be willing to review business decisions, especially those made in the past to see if it needs reviewing.
If your company is to keep up with the ever-changing fast-paced business world, they need to adopt a dynamic approach. Moreover, if the name of your company is going to hinder its growth, then, by all means, change it.
It’s too long
If you are starting a business especially in this era of digital marketing, you need to ensure the name of the business suits the standards of the online space. For example, it should not be too long that you can’t register it on Twitter.
It’s not advisable to have different handles across social media platforms. They all have to be in unison. Avoid long names, use short ones that your customers can easily remember when trying to search for your name.