Your business name is one of the most important components of your operation. It needs to convey a specific message efficiently and clearly. It’s the often the first element of your business that consumers will be exposed to, and if it gets the tone incorrect or is too obscure, you may be inviting trouble from the outset. So why exactly is your business name important? Here are five ways it can impact your success.
1. It sets the scene
The tone of your business name will set the scene for every interaction you have with your customers. Your name gives customers an idea of what to expect, and if their expectations don’t match up with reality, they are going to feel like something is wrong. Your name is the first component of your communications, and if you get your tone mixed up, then it leads people to feel that you don’t have a clear vision and they may assume that other parts of your business are similarly disorganised.
2. It informs your market
This is perhaps one of the more obvious ways your name can affect your success. Generally, a good business name will reflect who you are or what you do; ideally it will say both. While you can go with something a bit abstract if it fits the character of your business, a clear name that doesn’t leave room for confusion is invaluable.
3. It defines your business
While you want your name to be clear, it needs to be open-ended to allow for growth in the future. Names that include locations, for example, may hinder you if you decide to expand to other areas. Similarly, names that specify an exact service or product may not lend itself to diversification (although there are certainly examples of businesses who have expanded ranges under a narrow name).
4. It helps direct your business
When it comes to creating a strategy and mission, your business name is often a good place to start. That way you are more likely to ensure an approach where your communications are aligned and make sense to your potential customers. If you can create seamless strategies where you every element agrees, you are more likely to succeed.
5. It motivates you
One of your most important resources is yourself! If you aren’t inspired by your business, if you don’t genuinely believe in what you are creating, you aren’t likely to push as hard to get to where you want to be.
Of course, there’s often one big problem with names that seem clever and clear, and tick all the boxes; they are often taken. Once you have a shortlist of potential names, it is worth doing an ASIC search and company search so you can cross names that are already taken off your list. That way you don’t get attached to one particular name only to find out at the last minute that it’s not available. Specialist companies like GlobalX Legal Solutions can help perform these searches, so head to their website to find out more.
The right business name won’t guarantee your success, but it is definitely something to keep in mind when you’re in the initial stages of planning. How did you come up with your business name?