What Do You Have to Consider When Naming Your Business?
Consider the Benefits You Offer
- The benefits of what your business does should be considered when naming your business. An example of a poor choice of names is "ABC Ventures." It provides no description or benefits of the product or service. "Morebusiness.com" states that a company with a name like "Rent-A-Nerd," for example, gives the customer a picture of smart people providing benefits of resolving technology issues.
Consider the Market You Reach
- "Kentucky Fried Chicken," originated out of a small room of a gas station in Corbin, Kentucky. After it successfully sold its secret recipe to restaurants and built franchises, "Kentucky Fried Chicken" wanted to de-emphasize the regional nature of its name, changing it to "KFC." Similarly, the company name, "Minnesota Manufacturing and Mining," limited its growth because of the association with a region. The company changed its name to "3M." Both KFC and 3M made strategic moves to avoid bottle-necking themselves geographically.
Consider Word-of-Mouth Marketing
- Word-of-mouth is a powerful marketing tool. The name you choose should be short and simple, easy for customers to remember and pronounce. Avoid long, complicated names or names with unusual spelling. Starting your business name with "A," "An," or acronyms can add confusion for a person searching for the name in a telephone directory.
- A family of names can be reassuring to customers if the initial product or service is successfully developed. Many expanded businesses with multiple business names use a distinctive word in each name as with "Virgin Records," "Virgin Radio," "Virgin Mobile." Others use a distinctive word but are associated with a product. For example "Cadbury" is limited, although successfully, to its association with chocolate; for example: "Cadbury Creme Egg" and "Cadbury Dairy Milk."