The name of a new company can instantly reflect much about the nature and work of
the business. However, choosing the name for a
new business is not an easy task. It requires extensive planning and development
because the process involved in changing a companyâs name can be quite a time-consuming
and expensive process. In addition, a company name should convey a strong mental
image of what the business is about and exude a confident and optimistic connotation
for the existing and potential customers.
Ample preparation
In order to determine an effective company name,
entrepreneurs are encouraged to
research and brainstorm possible names with only a few associates. The reason for
limiting the number of decision makers is to avoid complex problems that may arise
when multiple people are involved. Family members and peers may resent the fact
their ideas and concepts were not used, while others may not be as productive in
the creative process. Many entrepreneurs will agree that it takes thorough planning
when deciding on a name for their
new business. In fact, the period of time it takes to successfully determine
a companyâs name can take as long as it did when devising the companyâs business
plan.
Avoid complex names
A business name should
be memorable to customers and have positive implications. Ideally, customers value
a unique name that is not complicated to spell or pronounce. It should also convey
a sense of expertise and value when encountered. While some business analysts strongly
believe the best names for any new business are ones that are abstract, others favor
names that communicate something about the company or its products. Choosing an
appropriate name can work as either an advantage or disadvantage to any
new business.
It is always best to select a simple, yet unforgettable name.
A costly process for name change
It is important to properly assess different names for a business before deciding
on an appropriate one because it will eventually serve as a long-term marketing
tool. Once a name has been chosen, the business
owners need to invest their money in branding the company products and name
in addition to creating different marketing materials (i.e. product advertisements,
public relations, logos, company letterhead and stationery, business cards, etc.)
If by some chance entrepreneurs decide at a later date they are not completely satisfied
with their chosen name, then the modification process can be a complicated, lengthy,
and expensive one. Countless paperwork and trademark advice, rules, and regulations
need to be considered in addition to the required costs it will take to completely
change all of the companyâs marketing materials. The overall physical and financial
costs for changing a companyâs name may be very straining. That is why preparation
is the key to avoid unnecessary future expenses.
Large vs. small corporations
Large corporations have the monetary advantage of hiring paid professionals in naming
their enterprises and marketing their ideas. Small business owners, on the other
hand, do not have the financial stability to commit to such an expensive process.
Instead, they must rely on their own limited resources when naming their company
and when advertising their products and services. Often times, small business owners
seek advice from family, friends, business associates, and other entrepreneurs who
can guide them during their initial years of business.
Provokes visualization and understanding
An entrepreneur needs to consider what their company name should communicate to
the public. Should it provide potential customers with some ideas about their different
products and services, as the name Bed, Bath, and Beyond implies (a well known company
that sells high-quality items for the home)? Or should entrepreneurs use their family
name when creating their business name, as in Alfonsoâs Bakery (a popular, family-run
local bakery in New York)? In addition, business owners, who plan to expand internationally,
should make sure the name of their new business does not have a negative connotation
in any other language. If it does, it can certainly be disadvantageous in productivity
and reputation. Some business analysts conclude a name works best for a new company
if it reinforces the key elements of the business. This is very important to consider,
especially if a new business desires more credible recognition.
Conclusion
The process of choosing a name for a
new business can be a very tedious and time-consuming experience. Often
times, the best names are unique, uncomplicated, and easy to recognize and recall.
In addition, an effective company name is one that rouses a strong mental image
of what the company is about.
Entrepreneurs should be aware that planning a company
name without ample preparation can mean additional complications in the future.