NAMING YOUR BUSINESS

Choosing the right name for your business is a very important task. Move over, changing the name of your business after it has become active in the marketplace is a very difficult and costly endeavor. This essentially means “Get it right the first time!”

To properly name your business, you must know exactly who your target customers are and what problems you intend to solve for them. Or stated another way, what customer need or want will your business satisfy. What are the benefits to your customer from dealing with your company versus the competition? What names are being used by your most successful competitors? Answers to these questions will help you get started.

Names of businesses can be classified in at least six different categories and, depending upon your point of view, some of the categories are much less desirable than others. For example:

1. The Benefit Name – this is a name that will identify the benefit that your products or services are intended to provide to your customer. Names like “Mr. Clean”, “QuickBooks”, “Data Doctors”, “Roto-Rooter”, “Jiffy Lube” , “True Value Hardware” and “Weed-B-Gone” are all names that imply a benefit of some sort to the user of their services or products. If your business is built around a particular product or service benefit that is unique only to your business, a benefit name may be appropriate.

2. The Description Name - names in this category basically describe the nature of the business or the type of products that the business supplies. Names like “Petsmart”, “Waste Management”, “Yellow Cab”, “Travelodge”, “AutoZone”, “Budget Rent-A-Car”, “NetGear”, and “Holiday Inn” all describe (or nearly so) the nature of the products or services the companies provide. This category is well-used and unless you get a name that will “stand out in the crowd,” other choices may be better.

3. The “Your Name” Name – if you are well known in your community, city or major geographical area, this can be a very beneficial category. We all recognize names like “Wal-Mart”, “Marriott”, “Callaway”, “Beach Aircraft”, “Mayo Clinic” and “Ford Motors” that supply an immediate connection between the product or service and a famous person, typically the company’s founder. If you are well known in your community and your name is Charlie, it may be a great idea to name your barbershop “Charlie’s Clippers!” If you do not have name recognition, stay away from this category.

4. The Map Name – this category obviously ties the name of the community, town or city to the name of the company. Names in this category can also imply the nature of the service or benefit, such as the electrical contractor in Kansas named the “Wichita Linemen,” or the Nebraska meat supplier named “Omaha Steaks,” and the fine airline serving the state of Alaska and other regional locations, “Alaska Airlines.” Too often a name tacked onto the name of the town or city where it is located becomes a path of least resistance and may imply that the owner didn’t have the time or the imagination to develop a creative and customer-oriented name. Choose this category last.

5. The Non-Descript Name – many experts on naming companies believe that a name that does not specify the service or product in its name avoids limiting that company’s future services. There is merit in this position. Names like “Verizon”, “Accenture”, “Adobe”, “Panasonic”, “Sprint”, “Canon”, and many others, do not limit the present or future activities of the company. Whereas, “International Business Machines” graduated to “IBM” when the nature of their products became widely diversified. If you choose a name in this category, you will need to use other means to promote the understanding of the type of service or product your company offers and its image in the marketplace. For a manufacturer, this might not be a limiting factor. For a beauty salon, it may or may not be a detrimental factor.

6. The “Cute” Name – if you choose this category, the name had better be good. There may be nothing better than “Google” or “Yahoo” or even “Amazon,” but “Phresh Phish” may not cut it for a seafood store. There have been some great “cute” names developed in the past that have become nearly household items. Consider names like “Kleenex”, “Miracle Whip”, “Coca Cola and Coke”, “Staples” and even “eBay” that have become synonymous with a special product or service. Be very careful when choosing a name that fits this category. It can be great or it could be devastating.

Other Considerations

Here are some obvious but often overlooked questions you need to ask yourself when naming your company:

1. Will the name look good in print?

2. If the name is spoken over the phone, will people clearly understand it and be able to spell it?

3. Will the name qualify for a trademark?

4. Will the name be available for a web site domain name?

5. Does my name require the inclusion of “LLC” or “Inc.” or “Corporation”?

Test the appearance of your selected name, both in print and on the phone. Get the help of some business friends. Do your homework a your Secretary of State’s office, the U.S. Patent and Trademark office and for availability of web site domain names, log on to www.networksolutions.com.