The Do’s and Don'ts of Choosing a Company Name

After deciding to open a company, the first step is choosing the company's name. Choosing a good name plays a vital role in your business and brand success. Since your company identity is essential, it's important to choose a name that stands out, represents, represents your brand identity the best way and comply with the law.

In this blog post, we'll see the do's and don'ts of choosing a company name for your brand. Let's get started.

The Do’s When Choosing a Company Name

Your company's name should reflect your business goals and identity and help market your company. That's why you must carefully invest in the correct name for your entity. Follow these tips to choose the best name for your brand:

1. Follow State Entity Naming Guidelines

If you're opening a company like a limited liability company or a corporation, the laws in your state might restrict you. This is because you are not supposed to use the name of a company already in your state. In some states, you can't use a word that deceptively resembles another business name.

Additionally, if you set up an LLC or a corporation, you must include a business identifier like LLC, corp, or Inc after your entity's name. Your state may not allow you to use specific names in your business. For example, you're not allowed to use a word like a bank if you're not a financial institution.

Look into your state company naming guidelines online at the agency that handles company fillings. Once you find the name unavailable, you can use it for your business.

2. Do Pick an Entity Name that Doesn't Resemble Your Competitors

Although you want to create a unique name, ensure you look into your competitor's business name. Remember not to choose a name similar to theirs. Also, avoid names similar to other businesses in your area since they can confuse your customers. For instance, if there's a business under the name "Red Carpet Executive Hair Care" in your area, don't name your business "Red Carpet Executive Nail Spa."

Unfortunately, a business could sue you for trademark infringement if you use similar names. Even if they don't file a lawsuit against you, ensure your company has a unique brand and identity since getting confused with your competitor isn't pretty.

A general internet search is a great way to investigate similar business names. You can search in the patent and trademark database for business names registered as trademarks. When searching, ensure you look for alternate abbreviations and spellings.

3. Choose a Simple Name that Customers Can Pronounce and Spell

Choosing a business name that is difficult to spell, pronounce, or long, people get tired of it. Meaning it can be annoying, which is terrible for your business. Stick to simple words that your clients can remember easily, so avoid names that are hard to remember.

4. Make a Company Name that is Web-Friendly

As everything shifts, ensure your business has a website and social media platforms. Even if your business is active on social media, try to get a domain name matching your company and social media accounts. Your domain name should be simple and memorable. An unusually spelt or long and complicated name may sound nice to you but can make it hard for prospects to find you online or correctly write your email address.

5. Ensure you are Unique but Memorable

If you have a big company, you will enjoy trademark protection for your company, but it can be tricky if you have a small business. If you want trademark protection, don't choose a geographical or generic company name like "Best Electricians" or "Chicago Barbecue." The name could be ideal for attracting customers, but you won't get trademark protection.

Conversely, the names that create the best trademarks are like "Xerox," but they leave your prospects scratching their heads. Try balancing between a unique and a creative name that describes the quality of your brand.

6. Choose a Name Consistent with your Brand

What makes you unique and attractive to customers? Is it a good location? Massive selection? Impeccable customer service? That may be true. But who is your ideal customer? When choosing a company name, ensure it reflects what you want your business to be known for. For example, "Velvet Touch Car Wash" and "Speedy Car Wash" describe the same type of business but portray different images to different customers.

The Don'ts when Choosing a Company Name

When choosing a name for your company, avoid these common mistakes.

1. Don't Limit Yourself

Sometimes, you choose a business that matches your town, for example, Birmingham Gardens Care. What will happen when you expand your business in another city? The perfect business name won't fit anymore and may even keep off your customers.

The same case applies to company names that describe a service. For example, "Silky Touch Hair Care" may be too specific, making it inappropriate if you want to expand your offerings. When choosing a business name, ensure it allows your business to change and grow.

2. Don't Create a Long Company Name for Twitter

When choosing a company name, keep in mind the digital marketing strategies. This includes creating social media platforms that match your company name to ensure your customers find you on social media. Unfortunately, a long name isn't ideal for a Twitter handle because it can be adapted on other platforms. A perfect Twitter handle should have a maximum of 15 characters.

3. Don't Follow Short-Term Trends

Choose an ageless company name and use it for years. Don't go for catchy phrases because they are overused and get boring after some time. Although businesses influence trends, they have no total control over them. Trends develop associations with groups of customers, but they don't overlap your projected target audience.

4. Don't your Brand Name after Launching a Business

Changing your brand name after opening your company is possible, but it's not advisable. If you must change your brand name, update advertising and marketing materials, social media accounts, and website. However, even after doing that, you may confuse your business target audience and lose some clients.

5. Don't Choose a Company Name Based on Domain Availability

Ensure your business name aligns with your industry. When searching the search engines, consumers are comfortable with different domains, whether .co or .io, meaning your company doesn't need to end with a .com.

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Frequently Asked Questions

What is a catchy name?

A catchy company name is a memorable name that sets you apart from your competitors. It should be unique but not too distinct. The name should grab your customer's attention so that they can quickly mention it without spelling.

How do I generate my business name?

Before picking a company name, analyse the industry's products, services, and marketing material. Look at what makes your competitor's brand memorable, then generate your company name around that, considering what will make your brand stand. Remember, a great company name is easy to find. You can also use an online name generator to help you create a business name in a few seconds. Enter your keyword in the generator search bar, and it will do the rest.

How do I know if my company name is unique?

A unique name means a company name that is not similar to your competitors. You can achieve this by searching for the name in the trademark database. If you find businesses identical or similar company names, visualise if customers can distinguish your business. Check if the similar names are within your industry. You may register your company if the names are in separate industries. So, do thorough research to avoid application denial and wastage of registration fees.

Conclusion

Choosing a company name is an exciting and creative part of starting your new business. However, before you pick a name, research, follow your state's legal guidelines, and ensure the name is unique but not hard to spell. Remember to choose a name that reflects your company brand, image, and long-term goals. Need some help choosing the best company name for your brand? Don't hesitate to reach out to Incorpuk for assistance on how to choose a name that makes you standout.