Your company’s name should not be settled on or taken lightly. Consumers will inevitably make assumptions based on your brand’s name, and if it does not represent what you seek to be, then you are starting off on the wrong foot.
What’s in a name?
Consumers tend to judge a business by its name. Business names matter – a lot. While a great name can spark a successful breakthrough, the downside can be equally significant.
Many owners name their businesses after a specific product or service they provide. This, however, can cause issues when the company begins offering something unrelated to its name. Situations like these are why many companies rename themselves over time.
Companies also look for new names after mergers and divestitures. Businesses encountering similarly named competitors after entering new markets often rename themselves to sort out trademark confusion. Others may rename to leave negative events behind them. And, of course, every new company must come up with a new name.
Having the right name can save money, because a business does not have to spend advertising and marketing dollars clarifying or elaborating on the muddled message that the wrong name conveys. A good name can also help lift a provider above competitors, reach out to new markets and open doors to further growth.
The name you want will likely express how your business does business, not just what you sell. That means avoiding literal descriptive names of products or services, as well as geographic references that may limit your marketplace.
Author: Staff Writer