4 Reasons Why Your Business Name Is Important

By Deven Patel

Think about companies you purchase from regularly: Nike, Adidas, McDonald’s, Apple, Starbucks, Amazon. Do you know how they got their names? Have you ever stopped to think that their business name may be responsible for their success?

Some entrepreneurs don’t think hard enough about the business name they select. They pick something they think is cool and roll with it. Yet, to your customers, your name helps differentiate you from thousands of similar ideas. Your name is their first impression of your business and giving it extra thought now may make all the difference as your company grows.

So let’s talk about business names and why they matter.

1. Your business name is the cornerstone of your brand

Nike. What’s the first thing that comes to mind when you say that name? Is it the iconic “swoosh” logo? The slogan “Just Do It”? Their clothing or shoes? Or what about the Greek goddess of victory that they named themselves after?

Nike took a concept like victory, created a brand, and named their company after it. Their brand represents the purpose of the business, what they stand for, and how their products help their customers become “victorious” in the gym or during sports. Through their name alone, they have molded their brand identity.

This should be your goal as well. You should strive to make your brand name the cornerstone of your brand. All of your other marketing should tie back seamlessly. Be patient, creative, and flexible while you’re brainstorming your business name. While you may want to select the first name you think of, be careful and thoughtful. You’ll want to consider it from all facets and perspectives.

2. Your business name helps you stand out from the crowd

Today there is no shortage of companies started by entrepreneurs. To your potential customers, you and your competitors all look the same, at which point the only thing differentiating you is the name of your company. Your business name is how your customers will identify you initially. So if you have a unique and memorable business name, you will be miles ahead of the competition.

Here are a few tricks that can help you choose a catchy business name that will give you a competitive edge:

• Avoid names that are hard to spell. You want a name that customers are able to Google with ease. For example, “Apple” is simple and straightforward as a business name. No customer could ever misspell it.
• Don’t choose a name that limits your company. For example, Amazon started as an online book retailer. If it had been named “Books4Sale” instead of “Amazon,” then it would have been much harder to expand into the e-commerce giant it is today.
• Research to see if the name is in use. Sometimes entrepreneurs believe they have come up with an original name only to find that it’s already in use. Make sure you do your research and conduct a thorough web search to see whether or not someone is already using the name.
• Get a ".com" domain name. Customers tend to associate .com with a more established business, so opt for a .com over .net, .org, .biz, etc.
• Pick a name that means something to you. You can build a brand around pretty much anything. It can even be a made-up word that turns into a word from the frequency of use—just look at “Google”! But it will ultimately cost you money to brand, and not all small businesses have the funds to do so. Choose a name that means something to you; people often love to hear the story behind your business name.
• Ask for feedback. Don’t hesitate to ask your friends, family, neighbors, and coworkers for their opinions. What names do they find confusing? What names are easier to say aloud? Use people in your life for inspiration.

More articles from AllBusiness.com:

• 10 Reasons Why You Need a Strong Business Plan
• How to Make Ethics a Cornerstone of Your Company Culture
• 10 Tips for Naming Your Home-Based Business
• Top 10 Mistakes Made When Choosing a Domain Name

3. Your business name will ultimately help you to increase sales

Strong brand names create customer loyalty. Think about the company Stanley Steemer. Its name often comes up in conversations about floor and carpet cleaning many people have heard of it from their commercials. They have a jingle that goes: “1-800 STEEMER, Stanley Steemer gets carpet cleaner!” The name is catchy, easy to remember, and ties in with the brand’s purpose. That makes it memorable and increases sales because people will instantly think of the company when they need their carpets cleaned.

Memorability should be your main goal when it comes to choosing a great business name. You want to make a great first impression great first impression on your customers the moment they hear it. A weak brand name will fail to capture the attention of customers and will negatively impact your overall marketing efforts.

4. Your business name makes it easier to attract talent

A great company name will no doubt increase sales and retain customers. However, one often overlooked benefit for the company is how much easier it becomes attracting great talent once the brand name has been established.

Take Facebook for example. Did you know that Facebook was originally named “TheFacebook” back when it was only available to Harvard students? It quickly dropped the “the” and branded itself as simply “Facebook” before it hit mainstream—and then we all know what happened after that. Facebook has become known for its incredible benefits: snacks at the office, excellent health insurance coverage, wellness allowances, generous family leave policies, and more. Cut to today, and Facebook is one of the most desired employers. Having such a strong name in the market has made the company a prestigious place to work and it has no problem getting the best of the best.

Choose a business name wisely

Properly investing your time and resources into selecting the right business name for your company will make all the difference in the world so choose a name wisely. And no matter how you go about it, remember to enjoy the journey.

FAQs about choosing a business name

Below we have summarized the most important questions and answers on the subject.

RELATED: Key Steps in Obtaining a Great Domain Name

About the Author

Post by: Deven Patel

Deven Patel is the founder and CEO of Alter, a domain marketplace that connects entrepreneurs with premium business names. As a serial entrepreneur, he founded a number of startups across various industries like marketing, web hosting, social networking, blogging, and SaaS. Now he is on a mission to help other entrepreneurs succeed.

Company: Alter
Website: www.alter.com
Connect with me on Twitter and LinkedIn.