When it comes to naming a business it can either be one of the easiest things to do or one of the hardest things to do. There are many reasons for this and it is one of the most important parts of creating a business. The reason why it is crucial to come up with a good business name is because it is everything that stands for your brand. It is the first thing that new clients will hear or read and it is the first impression that you would give when marketing, advertising, and meeting potential investors.
Why it might just be easy to name your business something simple, you still have to consider the competition that there is out there. Another thing that you have to consider is the fact that you cannot change the name of your legal entity, which means that this name will stay. In this article, we will help guide you on how to choose the best business name.
How to choose a business name
It is important that your business name is unique and memorable. While it may be only necessary for sole traders to use their personal name for their business, it is not necessary for bigger business structures such as LLC and corporations. Therefore, you can come up with a clever and catchy business name that will stand out against the competition.
However, it is important to consider the fact that your business name cannot be too similar or the same as an existing business. In order to prevent any potential issues, you can take advantage of free online business tools that are name generators. They can help brainstorm 4-5 different names for you and you can even obtain a domain name.
There are also other ways on how to come up with a business name, such as visual boards, brainstorming, fun wordplay and even word associations. There is no doubt that a business name will pop up, but it can sometimes take longer than usual for that to happen, so it is best not to rush this process.
Why is it so important to come up with a unique business name?
A business name doesn’t have to be complex, but if it is too simple it is easily forgettable. You need to put yourself in your customer’s shoes and ask yourself, what would I remember from a new company? Apart from the good service or product, how else can the company give me a memorable impression? Would it be the design of the brand logo? The name of the company? The location or online presence?
These are questions that you should ask yourself in order to have a clearer focus on naming your business. There are many situations where a customer may have visited a great place with a good service or product but could have completely forgotten the name because it was either too long, simple, or common to remember.
Legal name vs Brand name
Another important thing to consider is whether you want your legal business name to be the same as your brand name. An example can be the British supermarket chain Marks and Spencer, but they advertise their business as M&S. The legal name is what is required to be used on all important documents, but the brand name is a clever strategy to market their business so that it is easy and catchy to remember. Another example is McDonalds, but nearly all consumers globally now call this fast-food chain Maccy Ds, simply because it’s easier and catchier to remember.
Coming up with a business name is just as important as any other step when registering and setting up your business structure. It is crucial to remember that it is the foundation of your brand. Choose your business name wisely and don’t make hasty decisions.