Choosing an Effective Business Name

Tips for Coming Up with the Perfect Name for Your Business

Apr 16, 2009

Your business name is important, but thinking up one that fits your business can be difficult. Here are some tips to help you choose an effective business name.

One of the most essential, and seemingly one of the toughest, parts of starting a business is choosing a business name. A name can make or break a start-up company. Not only do most people want a unique-sounding name, they want an original one; coming up with such a name can be a hard feat to accomplish in a world where few names or concepts are 100% original. Fortunately, choosing an effective business name doesn’t have to be a dreaded task.

Consider Your Target Market

Target market will determine many aspects of a business, including marketing and business plans, location, and public relations strategies, but it affects a business’s name most of all. Picture this: a high-end clothing boutique sets up in an exclusive retail district with the name “Big Bob’s Clothing Store.” That would not go over well; it just doesn’t fit the clientele or the product. Likewise, it’s not a good idea to name a discount hair salon “Chic Coif”- it’s a cute, catchy name, but customers would be unlikely to connect to it. Make sure a business’s name is relevant to its customers.

Some of the most memorable business names have been made up. It may be hard to come by a unique name that isn’t silly-sounding- there is a difference between catchy and unappealing. Start by considering adjectives that describe the business. Then combine parts of those adjectives to make a unique word. Alternatively, take an existing word and attach a prefix or suffix that relates to the business’s area of industry. While trying to brainstorm an original name just let the ideas flow, and don’t try to restrict the thought process; there will be plenty of time to go back and analyze the names later.

Avoid Generic Names

“Joe’s Auto Repair” and “A-Plus Graphic Design” are both examples of generic names. They sound like they didn’t take much effort to come up with, and give the business no special edge. A graphic design firm may very well be “A-Plus”, but it’s best to show that by providing great service, rather than through the business name. Those with a very common last name should avoid using it for their business name. On the other hand, those with a very unique, easy to remember and pronounce last name, should consider using it.

When to Choose a Name Already in Use

Sometimes, new business owners come up with the perfect name, do a search, and to their horror find it’s already in use by another business. If the business is in an unrelated industry and the name isn’t trademarked, it’s fine to use the name. Let’s say a business owner planning to open a coffee shop wants the same name as an existing PR firm- in this instance, the areas of industry are so different, it won’t hurt either of the businesses to have the same name. Be careful not to go with a name taken by a company in a complimentary industry. For example, a dance shoe store and a dance instruction studio with the same name is not a good idea.

It will take a bit of time, patience, and creative thought to come up with the perfect business name, but it’s worth finding one that’s fitting, and that will be effective with the business’s target market.

The copyright of the article Choosing an Effective Business Name in Small/Home Business is owned by Rhonda Bunton. Permission to republish Choosing an Effective Business Name in print or online must be granted by the author in writing.