Choosing
The Right Business Name
by Ramona Creel
Sometimes,
new entrepreneurs are in such a rush to get started at their
businesses that they jump right into working with customers
without giving much thought to their BUSINESS NAME. “I’ll
just do business under my own name for a while, until I find
something I like.” While it seems easy at the time,
you might want to re-think the plan to change business names
down the road. You will find that, as your professional recognition
and customer base grow, people have started to IDENTIFY you
with the name of your company. A name change in mid-stream
can be costly and confusing.
First, you will lose ground in the marketing arena -- it takes
time and effort to build up BRAND RECOGNITION, and that time
is lost when you change names. You may also lose customers
to the competition -- what are they to think when they go
looking for “Joe’s Mobile Car Wash” in the
yellow pages and you’ve changed your name to “Fast
and Easy Auto Detailing?” They might think that you’ve
gone out of business and it’s time to find someone else
to clean their cards. And finally, changing names can cause
you increased PAPERWORK and EXPENSE -- changing your bank
accounts, credit cards, marketing materials, incorporation
documents, DBA registration, etc. So why not get it right
the first time? Here are some suggestions for choosing a business
name that will serve you well for years to come.
IS
IT MEMORABLE?
When
people hear the name of your company, will they be able to
REMEMBER it 15 minutes, 30 minutes, 3 hours, or a week later?
When they decide to hunt you up on the web or in the phone
book, will they be able to easily recall your business name?
It doesn’t matter if you are choosing a fictitious business
name or using your own -- the same rules apply. Your name
should be UNIQUE enough that it will stick in a potential
customer’s mind -- “Smith’s Gym” isn’t
going to be nearly as easy to remember as “Work That
Body.”
You
also want to stay away from names that are likely to be CONFUSED
with another company. You may think it’s a cute idea
to come up with a name that closely resembles (without exactly
copying) another company’s name. But calling your personal
coaching company “Joys-R-Us” is confusing, unoriginal,
and likely to bring about a lawsuit! And beware of phrases
or ACRONYMS that are overused in your profession. You wouldn’t
believe how many Professional Organizers use some combination
of words that spell out SOS (usually “Someone’s
Organizing Solutions”). Your company will stand out
more if your name is truly unique.
IS
IT EASY TO SPELL?
However,
the next question is “when they do recall it, is it
easy enough to spell that they can immediately find your listing?”
You want to stay away from challenging spellings and pronunciations.
Calling your restaurant “Phine Phoods” is just
asking for trouble -- how is your customer going to know to
look under “p” instead of “f” in the
phone book? And if your last name is Piccalopoupoulis, you
may be better off creating a fictitious business name. A good
rule of thumb to follow is to pay attention to what happens
when you tell other people your name -- if you are always
having to SPELL or PRONOUNCE it slowly, it will be hard for
people remember and find later on.
This
is particularly important if you are planning to turn your
business name into a DOMAIN name. Websites with long or hard-to-spell
names get overlooked during standard searches. And try to
avoid having to include a hyphen or underscore in your name
to make it appropriate for the web. Short, snappy, easy-to-remember
names work best in the translation from brick-and-mortar to
internet.
DOES
IT DESCRIBE YOUR COMPANY?
Will
customers learn something specific, unique, or descriptive
about your business, just from hearing the name? Will they
get a feel for WHAT you provide or HOW you provide it? Many
individual service providers try to sound like high-end firms
by using some derivative of their first and last name for
their company identity – “Joanna Carrol and Associates,”
or “JC Consulting,” or “Carroll and Company.”
But what does that really tell a potential customer about
your company? I don’t know if you are an insurance agent
or an attorney or a professional organizer. Include something
in your name that describes your product or service -- “JC
Graphic Design” -- so customers aren’t left WONDERING
what type of business you have.
You
can also include some information about those special CHARACTERISTICS
that make your business DIFFERENT from the competition. Okay
-- so you’ve told me that you are a printer. Why should
I hire you instead of the printer down the street? You might
be faster, cheaper, provide better quality, have more experience,
offer a higher-end product, or provide more services than
the other guy. If it’s appropriate and pertinent, include
one or two of those traits -- “JC Full-Service Graphic
Design” -- in your name.
DOES
IT LIMIT YOU?
If
you are joining an industry that allows for “branching
out,” be careful about giving your company a name that
traps you in a very small service area. For example, a company
that starts out putting in tile floors -- but has plans to
expand into vinyl, hardwood, and carpeting down the road --
wouldn’t want a name like “TileMasters.”
Something more along the lines of “FloorMasters”
will give the company the FLEXIBILITY they need to grow and
change later on.
And
if you have intentions of ever expanding your service area,
you need to be careful about a GEOGRAPHICALLY limiting business
name. “Hair Over Atlanta” isn’t going to
work as well when you open locations in Seattle and Los Angeles
and New York. Be sure to check the US Patent And Trademark
Office’s online database (http://tess.uspto.gov) to
make sure your name is available for national use before you
start printing it on your cards.
You
also have to stop and think about whether naming your company
after yourself -- “Bob’s Bar and Grill”
-- will limit you in a different way. If you have ever read
“The E-Myth” by Michael Gerber, you know that
having customers identify your business as an EXTENSION of
you brings about its own special pitfalls. You become indispensable
to the company -- people get used to seeing Bob behind the
counter every night and that’s what makes it “Bob’s”
-- the business can’t run without you. And if you ever
decide that you want to take a break, let someone else run
the place on your behalf, or sell the company, you will run
into a roadblock. Quite often, what seems like a great way
to PERSONALIZE your business ends up turning it into a stone
around your neck.
This
business is your baby, your investment in the future, and
you will have it with you (hopefully) for a long time. Don’t
short-change your business by skipping out on one of the most
important steps you will take during start-up -- selecting
just the right name.
Ramona Creel is a Professional Organizer
and the founder of OnlineOrganizing.com -- a web-based one-stop
shop offering everything that you need to get organized at
home or at work. At OnlineOrganizing.com, you may get a referral
to an organizer near you, shop for the latest organizing products,
get tons of free tips, and even learn how to become a professional
organizer or build your existing organizing business. And
if you would like to read more articles about organizing your
life or building your business, get a free subscription to
the "Get Organized" and "Organized For A Living"
newsletters. Please visit www.onlineorganizing.com
or contact Ramona directly at ramona@onlineorganizing.com
for more information.
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