PerfectBusiness - The Entrepreneur Network to Create Your Perfect Business

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Technology

Location

Legal

Personnel Management

Risk Management

Insurance

Business Success Tips

Sample Documents

Checklists

Contributing Authors

	Joe Kennedy Author of The Small Business Owner's Manual
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	Tom Severance Author of Business Start-Up Guide
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	Stephanie Chandler Author of The Business Startup Checklist & Planning Guide
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	Steven D. Strauss Author of The Small Business Bible
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Business and Product Names

Entrepreneurs don’t always see the importance and value of good business and product names. Names do not often seem important early on, as more pressing needs of the business are being met. Nevertheless, it is wise to spend sufficient time choosing an appropriate business or product name. It will pay dividends in the future. Many of the well-known companies today could lose all their physical and monetary assets and would retain substantial value with their name alone.

Think down the road many years. A powerful and protected business or product name can give your business added value that can continue beyond your career. If a sale or inheritance of the business occurs, a powerful name will add value.

The naming process can be fun but also frustrating. The best names combine the marketing benefits of a “descriptive” name and the legal benefits of a “coined” or “arbitrary” name. Try to attain the best of both worlds with a “suggestive” name.

The four basic tests for assessing the power of a name are:

Distinctiveness. The name should immediately distinguish the business from its competitors. Stay away from the traditional or generic names such as “first,” “national,” “American,” and “united.” Break away from the crowd.
Relevance. The name should convey the nature or benefit of the service to identify and position your company in the customer’s mind.
Memorability. Be able to understand, use, and recall the name easily. Stress brevity, simplicity, ease of pronunciation, and ease of spelling.
Flexibility. The name should accommodate the inevitable changes in the organization, economy, products, and strategies. Be careful of geographic and product or service limitations.

Here are some more guidelines in choosing a good name:

Pick a name that reflects your identity.
Your name should have a positive ring. Avoid negatives. Your name should make people enthusiastic and optimistic.
Don’t become caught up in trends or fads. Be focused on the long term.
Pick a name that looks and sounds attractive.
Consider a name that starts with “A” if you plan to advertise in the yellow pages.
Avoid puns and jokes. Customers want benefits, not humor. Remember that you will live with the name for a long time.
Be careful of technology-sensitive names that could require changes in the future.
Generally avoid names that include the name of you or any other person. Your name is not a benefit to a customer.
Pick a name that invites and persuades customers to buy your product.
Pick a name that can be a headline by itself.
Pick a name that appeals to your target market’s emotions.
Don’t over-promise and under-perform. Live up to your name.
Be sure to obtain proper legal protection for your name.
Research the meaning and sound of names in foreign languages and cultures.