Naming your company is one of the first orders of business you will execute when starting a firm. The name you choose will not only represent your business over the coming years, but it will be a critical part of every marketing campaign, printed media, and sales you make. It is the first thing your customer sees and plays a crucial role in the perception of your brand. Things appear better in hindsight, but unlike other business decisions, changing your name later would be a costly affair. Our team has put together a checklist of mistakes entrepreneurs make when naming their business.
Choosing a geographical name for your business
When you’re starting a business, choosing a local name might make sense. In addition to attracting local customers, you’ll be able to work with a limited marketing budget. This proves to be one of the biggest mistakes people make when naming their business. What happens when your business is large enough to service multiple cities, state, or even the entire country? Courtesy of your name, your potential clients would mistake your name to be your service area as well. So the next time Newark Consulting Group sounds like a good name for your business, remember this tip and go with an alternative.
Picking a confusing name with a wrong spelling
People in the creative industry often end up picking a name that’s either too catchy or has some cool rhyming letters in the name. The result is something similar to #KewlCamperz. While the name might make perfect sense to you, what about your customers? The same goes with picking a difficult a name. We understand that you’re inclined towards using a foreign language name for your business, but your customers are unlikely to connect with it. Moreover, you’ll find yourself spelling your name out at every marketing event. People have a tendency to forget difficult names.
Picking a trend to name your business
Choosing a name based on an ongoing trend is another major mistake a business could commit while selecting a name. For instance, a technology company that offered solutions for the classic Y2K bug in the early 2000s would become irrelevant with a name like Y2K Technologies or Y2K solutions. Choose a name that stays relevant over the years, saving money on rebranding expenses in the future.
Taking too many opinions
It’s understandable that you are cautious while naming your business, but that doesn’t mean that you should go on asking a dozen people for suggestions. Several companies commit the mistake of involving their entire team in the process or even taking ideas from their clients; the result is often a vanilla name. If you need an opinion on your business name, consult one or two of your executives, not the entire team.
Using a generic name for your business
When was the last time you picked a company called ABC Technologies or XYZ Marketing for your business? The chances are you didn’t choose companies with generic names, and the same holds for other people. Several business owners pick generic names for their business and then end up struggling to create a unique identity. Choose a name that gives a decent idea of what your business is about without getting lost in the crowd.
Being too descriptive with your brand name
Starting a business is a challenging task, but the real problems arise when you need to expand your business. If you have a highly-descriptive name, people are going to associate you with a particular service or product only. For instance, a company called ContentZilla will always be perceived as a company that offers content writing or marketing services. The same holds for a company called FurniturePro. When choosing a name, do understand that your business might explore new opportunities in the future, so your name shouldn’t be too descriptive to restrict your growth.
The classic mistake of sticking to a wrong name
If picking a wrong name wasn’t enough, some entrepreneurs go one to embrace that name for their business in spite of getting negative feedbacks. KFC is a classic example of what one must do to get out of a wrong name. The company was initially called Kentucky Fried Chicken, but as its customer base grew, it was forced to choose KFC; not that anyone would be sorry for the transition. If you are aware of your mistake, be quick to correct it and save thousands of dollars in rebranding.
Choosing a name for your business is a major decision, so it is best to take your time and choose a name that defines your company the best. The name of your business is your beacon to the world and your brand; give it the due attention it needs.
Tell us the story behind the name of your business, and we’ll mention the best one in our next post.