Updated: October 22, 2018.
The name of your company has a tremendous impact on how customers and investors view you, and in today’s small world, you need to consider a global audience.
Why is it so important?What's in a name? A lot, when it comes to the success of your business. The right name can make your company the talk of the town. The wrong one can leave it struggling to get off the ground.
Your business name may well be the first exposure to your service that a potential customer has – so make sure it’s been thought through. Your name needs to convey the expertise, value and uniqueness of your product or service.
Think About Your PerceptionYour name has a huge effect on how your business is perceived:
Attentiveness – Bad company names show a lack of thoroughness and attention to detail which is not a trait you want. Having a clever, well though-out name is vital to making your customers believe you have a high level of capability – and are the type of business to thoroughly think through every aspect of the service.
Awareness – You need to be aware of who your customers are, and this knowledge needs to be reflected in the name. A poor name that has no connection or relevance to your target audience can show a lack of awareness. You want your customers to feel like their needs have been understood, so make it relevant to them or they may take their custom elsewhere.
5 rules to follow:
The best tip we can give you is to keep things simple. The shorter in length, the better. If possible limit the name to 2 two syllables and stay away from hyphens and any other unusual characters. Directory listings work alphabetically so pick a name closer to A than Z. In our digital world a company website is essential and the web address may also dictate your company name to some extent depending on the URL’s available for purchase.
There are some very, very successful companies who have taken the risk of using quirky nonsense names, but they are a minority. The likes of Yahoo and Fogdog have no relevance to their service whatsoever, they’ve been picked because they sound good, but this is not an advised method.
Think about your product or service and make your name relevant. Adopt a business name that provides some information about what your business does - TripAdvisor is a perfect example.
This is often referred to as ‘stickiness’. You need to make your business name stand out from the crowd but it also needs a catchy handle that will remain fresh and memorable in peoples mind. If you have a generic and dull name that doesn’t sound distinctive, you may find that customers have a difficulty in distinguishing your company from others.
Trial and error is often the best approach to hit this tricky component. Keep the names unique and test their catchiness. Try them out on potential customers and co-workers. Ask questions about the names to see if they give off the impression you desire.
If you want people to remember your business, make your name one that customers can pronounce and recite easily. Stay away from made up words or acronyms. Though they might mean something to you, most people won’t have a clue what they are, and will more than likely forget your name in a flash.
When creating a name, stick to the traditional spelling of the words. It’s becoming quite common that start up founders are using unusual spellings of a word to make their company stand out, but this can cause hassle for customers who try "Google’" your business to find you. It can even cause issues when customers recommend you to their friends and family, meaning you lose custom simply through the spelling of your name, don’t let it happen.
When it comes to choosing the name of your company stick to simple and straightforward, it make things a lot easier for you and your customer, and it costs less to brand. However, it’s worth pointing out that whatever name you decide on, your business will make the name – and not the other way around.
