How Do You Choose a Name for Your Business?

How Do You Choose a Name for Your Business?
There are several questions you can ask yourself when you are considering the name for your
business. Some of them might be as follows:
• Are you buying a franchise? If so, chances are that the business will already
be named. In that case, your problem is solved for you. If not, the franchisor will
guide you as to what names will be acceptable to them.
• Are you buying an existing business? You will have to decide if you want
to keep the current name of the company or rename it. Ask yourself if the current
name suits your vision of the business and if it is important to keep it the same in
order to best serve previous customers. If the answer is “no”, you will have to
decide on a new name. If so, apply the following questions to the renaming of the
business.
• Is your name descriptive of the business? It is important that your
business name conveys an image of your products and/or services. The name
should not be long and cumbersome. Your target market needs to perceive that
yours is the company that can solve its problems and fill its needs.
• If your business expands, will the name still be appropriate? The
name you choose should not be restrictive. It should be general enough that it
will still encompass the essence of the company after several years’ growth and
expansion.
• How well will your name combine with your logo? Can the name be
abbreviated and be utilized as an acronym? Can you incorporate it into your logo
to further brand your company? I have used OM..IM with my logo (a fanned
book). It looks great, but when you say it out loud, it doesn’t have much of a ring
to it.
• Should you consider using your domain name as your business
name? Many companies who operate solely on the Internet choose to use their
domain names as their business names. Examples are “buy.com” and
“Amazon.com”. If the company has brand identity, using its domain name
provides customers with instant recall of both name and location on the net.
• Where will your name fall in alphabetical listings? It has long been a
habit on most occasions to place lists of names in alphabetical order. This holds
true for telephone books, internet listings, membership directories, etc. People
also tend to choose the first name that they perceive as appropriate to what they
are looking for. If it will work for you, you might just as well choose a name
beginning with “A” as one that begins with “Z”
• Will your name work internationally? Sometimes, a company name does
not translate well in other languages. “Osco” was the name of a well-known
drugstore in the U.S. The name did not have a pleasant meaning in Spanish. The
name was changed to maintain the large Hispanic customer base.
• What is your legal structure? Depending on the legal structure you have
chosen (and the form of that legal structure), your name may have to reflect that
choice. For instance, corporation names generally end with “Inc.” Law firm
partnerships often have the designation “LLP”.
• Would your business be best served by using your own name? Many
service providers (and/or product sellers) already have name identity and
credibility. In that case, it might be best to use your own name, either by itself or
in conjunction with words that describe your business. Some examples might be:
- Naming a law firm “Ortega and Chavez, LLP”
- Incorporating a tax firm under the name, “Lopez and Ochoa, Inc.”
- Naming a company “Mario Ortega Professional Diving School”