Eight Pointers for Picking a Name for Your Company or Business. Learn how to choose original or descriptive names and how to avoid common mistakes.
It is an important choice because the company name will be closely associated with the business and the products it sells. In addition to the equally significant logo, the name contributes to the distinctive identity of your business. It distinguishes your business from others and defines it. It’s also important for keeping customers happy and helping spread the word about the product or service.
A good name first of all gives credibility and authority to the company, then generates trust. Over time, it takes on value, thus producing revenue and becoming monetizable, that is, resaleable. Ultimately, it becomes an asset of the company . For this reason, the choice of name must be seen as a strategic investment and must be made with attention to detail.
This is true for all types of businesses , whether it is a sole proprietorship or an LLC , an agricultural business or a corporate.
So let’s see how to proceed in choosing the name of your business or company.
1. Distinguish original names from descriptive names.
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First of all, it is essential to distinguish the different types of names , in order to identify the most suitable naming.
Original names.
Names created from scratch, specially studied and coined, are always in fashion.
They can be compound names, acronyms or abstract names . For example, IKEA comes from the initials of its founder, Ingvar Kamprad, along with Elmtaryd and Agunnaryd—the farm and village where he grew up. Vodafone is formed by combining the words VOice, DAta, and teleFONE. Spotify, on the other hand, has no specific meaning and was created almost by accident. Besides their implied significance, these names are also appealing for brand use because of their distinctive and memorable sounds.
Names that describe industry and services.
If a company is called Divani & Divan i, it’s not hard to imagine its industry, right? And if we talk about Pizza Hut , obviously a chain of restaurants specializing in pizza comes to mind. A descriptive name immediately clarifies the industry in which a company operates and immediately makes people think of an “industry leader”.
Sure, it may seem a bit obvious, but it works. The risk, however, is that of characterizing the company only and exclusively for a certain product or service , leaving little room for any future developments. For example, Poste Italiane currently offers cellphone services, e-commerce, mobile payments, insurance, and savings collection.
Names of founder(s) – partners.
Especially in small and medium-sized local businesses, it is still very common to choose the founder’s surname as the company name . This decision recalls a strong link with one’s origins and with the romantic image of a house-shed, typical of Brianza and the North East. For example, Benetton (pay attention to the correct pronunciation: Benettòn and not Bènetton).
This approach to naming is also the preferred choice of law firms, accountants, and providers of professional services and consultancy in general, where “a good name counts”.
However, it is important to keep in mind that this choice can create difficulties in the event of succession or changes of partners.
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2. Make sure the name meets certain factors.
Once you have chosen the type of name, it is important that it has certain characteristics to be effective:
- Consistency with the product/service offered and with competitive factors.
- Positivity , avoiding misinterpretations or denigrating interpretations.
- Simplicity in communicating and memorization, to prevent spelling mistakes.
- Brevity in order to be clear and memorable.
- Pleasant sound , consistent with the product offered; think of Intimissimi, with that “mischievous” double S, or the “solidity” of a “hard” name like Black & Decker.
- Uniqueness , to distinguish yourself from others and avoid legal conflicts. This aspect is even more relevant if you consider that your company will need a domain and a website and related social profiles, without neglecting the legal aspects (e.g. registered trademarks).
3. Identify and define your business precisely.
You must first decide on a few basic questions before deciding on a name for your company, such as what product category you wish to work in. What sort of goods are you planning to sell? Who are you trying to reach?
You can create a list of at least ten adjectives that best characterize your company and its offerings after you have made these points clear. You can choose the best name for your business more quickly and easily with the aid of this list.
4. Try to convey the services and benefits you intend to offer.
Your company name should communicate both your offering and the benefits you offer to your audience. Do you provide 24-hour customer service? Do you provide unique things for sale? Do you promise a high standard of quality? To differentiate yourself from the competition, pick a name that combines actual and made-up terms to highlight your strengths.
5. Look around and get inspired.
What are the words that capture your attention and/or are best remembered?
Identify words that catch your attention and are easy to remember . Create an alphabetical list to refer to when you feel inspired. Read, watch, listen: every day we are bombarded with advertising messages, names and ideas. At least it serves a purpose!
6. Think about the web.
Today it is essential to choose a name for the company that can also correspond to the domain of a possible website , where you can describe your business or your product.
For this reason, choose short, easily comprehensible names instead than solutions that are too long. Additionally, attempt to steer clear of accents and apostrophes to guarantee more coherence between the brand name and the web domain.
7. Avoid using registered trademarks or those already present on the web.
Before you pick a name for your new company or business, you need to check it carefully to ensure it hasn’t already been used as a trademark or website name by someone else. This will help you avoid legal problems and create a distinct identity for your business.
8. Discard cacophonous names that are difficult to pronounce and remember.
If a name sounds bad, it’s best to avoid it . Also, try to avoid terms that can evoke unpleasant things.
Also exclude terms that are too complicated and difficult to pronounce, as well as names or words with more than 3-4 syllables and acronyms that are too cryptic.
Also, avoid using overly original puns that might only be understood by you and your friends.
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