Choosing a Name

The choice of a name often presents a huge problem for a new business. The problem comes from the idea that the name is critical to the success of the business and much time is spent trying to choose one that is so clever, the business is going to take off just on the basis of the name.

There are a few examples - Toys R Us is one - but mostly, successful companies have names that say very little. The area of company names is one of those fields where the gap between safe and sorry is so large that most choose safe. Safe is a name giving your product - General Motors or the name of a person...or McDonald's. Also check that the initials spell something acceptable - GM, IBM. More tricky, but a good alternative, is a made-up say-nothing name like Exxon. This is especially appropriate if your product is dark, dirty, smelly and pollutes - you don't want your customers to be reminded. Sorry is anything that is controversial. Look here for a further discussion of this aspect.

In addition, your name should always address your product in terms of a solution to the problems your target market customers are facing. Many small businesses go wrong here and call themselves after the problem they're offering to solve. A cleaning business whose name brings to mind clean houses, sunlight and air is going to do better than one whose name is associated with the cleaning process or, worse, the mucky house. It sounds basic but many small business founders are focused on the problem their small business is offering to solve and their choice of name reflects this preoccupation. You don't see many businesses with this kind of name because they aren't around for long.

Of course, this discussion assumes you want to build a reputable business, well-respected in your community and one that'll be around for the long term. If, instead, you think any rep is a good rep, notorious means famous and you're ready to move often, out of the country if necessary, get yourself a really offensive name - you'll probably do very well.

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