Every business needs a name. Of course, this is easier said than done, but some basic steps to getting your product or service into the market with confidence and clarity. A company name does more than set you apart from the competitors. It also sets the tone for your company and is crucial to building a solid brand. So, what do you do if you can’t think of an excellent company name? What if it has already been claimed? What makes you think it’s a proper name for your company? This article will teach you all you need to know about picking a company name.
What Is the Definition of a Business Name?
As the term indicates, a business name is a title or name that a person or corporation uses to do business. Essentially, this is the legal name of your company. Therefore, your company name will be your complete legal name in the event of a sole proprietorship.
When naming a sole proprietorship, you may use more than one word. However, it would be best to continue to use your legal name. For example, if you manage a small software consulting firm, you may call it Jane Doe or Jane Doe Software. If you want to conduct your sole proprietorship under a different name, you’ll certainly need to file a Doing Business As (DBA) application. General partnerships follow the same course. Typically, the business name will combine all the partners’ last names. For example, your collaboration may be named Doe, Smith & Brown. Again, the business may have to file a DBA to use a different name.
Finally, the owner’s legal name is not required for limited liability companies (LLCs) and corporations. You have complete freedom to select whatever name you choose, as long as it is not already branded or registered. Some countries, however, require you to use LLC or Corporation in your company name. For example, insignia Digital LLC or Insignia Digital Corporation might be the name of your company. It’s also important to note the distinction between a company and a business name. These terms are often used interchangeably. However, there is a distinction to be made. Any company structure may be referred to by the phrase “business name.” Sole proprietorships, partnerships, limited liability firms, and corporations are examples of this. On the other hand, a company name is used to identify incorporated firms. LLCs, non-profit companies, C corps, and S corps are examples of the latter.
The Fundamentals of Picking a Good Business Name
There are nearly unlimited alternatives for selecting a company name, and it’s far from a science. However, there are a few qualities that all great company names have in common. The following is an example of a company name:
Short
The majority of experts feel that a company name should be brief. It should ideally be one or two words. You may, however, go for three words if one of them is a transition word. Toys R Us is a great example. There are additional compelling reasons to opt with a short company name. The name will be simple to comprehend, remember, and pronounciate. Two to four syllables are also ideal for a company name. The name is also simple to say as a result of this method. Finally, keep the number of characters in your name to a minimum. More letters make it more difficult for people to recall your company name.
Memorable
There are several compelling reasons to adopt a specific company name. To begin with, most new firms depend on word-of-mouth advertising. If your customers can’t recall your company name, you can lose tremendous chances. In addition, you should utilize a unique business name in your marketing materials. This will help you get the most out of your advertising strategies. Finally, you may wish to remain with current terminology. This path, however, will be difficult since your competition has already chosen most names.
On the other hand, existing names have well-established meanings, making them more straightforward to recall. Made-up names are a terrific way to set your company apart from the competition. Exxon is a good illustration of this. However, it takes a lot of time and marketing work for made-up terms to stay with your audience.
Brandable and descriptive
Business names fall into two distinct categories. These are Brandable and descriptive business names. Your audience will get a decent impression of what your company does if you choose a descriptive business name. Toys R Us and Baby Shop are two examples of descriptive words. Descriptive names provide prospective consumers a clear image of your goods or services, making it more straightforward for them to pick your company. However, descriptive names have restrictions. It may be more difficult for you to branch out into other goods or services. These names are also quite popular, particularly when registering a domain.
Brandable names are usually less well-known. Some may indicate what you do, although it is not always evident. Amazon, Starbucks, Apple, and Google are all examples of brandable names. However, customers may struggle to understand what you offer if you do not provide enough background. On the bright side, brandable names allow you to be more creative with your product or service offers. A hybrid method combines the best of both worlds by combining both principles. Tesla Motors is an example of a hybrid company name. The first name, Tesla, is highly brandable and connected with energy. The motor is the second name, and it’s self-explanatory.
Simple to Spell
Clients will look for your company name in directories or on search engines. If your company name is difficult to spell, this might be a challenge. As a result, you should avoid using complicated names, acronyms, different spellings, or digits in your company name.
3 Tools to Help You Choose a Better Business Name
There are a few useful tools that might assist you in deciding on an excellent company name.
1. Thesaurus
It might be challenging to come up with a specific company name. However, your perfect names are almost certainly taken. As a result, begin with a word dump. This entails making a list of all the terms that best define your company. Make your list in 20 minutes to an hour. It makes no difference whether the name has already been taken. Next, look for synonyms for each word on your list in a thesaurus. This activity will provide you with a plethora of possibilities and motivation. You could even come upon some hidden treasures that you wouldn’t have thought of otherwise.
2. Generate a business name
Business name generators abound, and most of them are free. The usage of business name generators is also quite simple. You need to enter one or more keywords that are relevant to your company. The generator then generates a list of possible company names for you to examine. The features and intricacy of business name generators vary. However, I strongly suggest using Shopify’s business name generator. After inputting your keyword, you’ll receive 120+ viable company names in less than 10 seconds. The most significant part is that Shopify’s generator will tell you whether your chosen domain name is available.
This tool is free to use, and you don’t need to register a Shopify account unless you want to utilize Shopify to build your online shop.
3. Trademark Registry
Finally, before committing to a company name, check whether the name has already been trademarked. Then, when it comes time to register your company name, it will save you a lot of time and effort. The United States Patent and Trademark Office (USPTO) maintains a public database of registered trademarks. You may check this database for free to see whether your company name has already been trademarked.
5 Tips for Picking a Great Business Name
There’s a lot more to selecting a company name than just picking one you like. Here are five tips to help you develop the perfect company name.
1. Consult your state’s naming regulations.
In most cases, you won’t be allowed to pick a name already in use by another company in your state. Furthermore, you will be prohibited from selecting a company name that is deceptively similar to a rival. Other typical prohibitions include avoiding choosing a company name that might mislead the public about your firm’s entity type or purpose. Finally, some jurisdictions require that your company name have information about the organization, such as an LLC or corporation. These frequent limitations might differ from one state to the next. In New York, for example, what is deemed a deceptively similar company name is substantially different from what is considered a deceptively identical business name in North Carolina. Because of the pluralization, business names like Capital Productions and Capital Production aren’t deemed comparable in North Carolina. However, in New York, you’d have to adopt a different company name. When conducting business in various states, things might become much more complicated. Delaware, for example, does not have any terms that are entirely prohibited. California is far harsher, banning words like incorporated, bank, insurer, and corporation. To receive a thorough understanding of company name rules, go to your state’s Secretary of State’s website. If you are conducting business in many forms, the same rules apply.
2. Pick a Web-Friendly Company Name.
In the information era, having a web presence is almost a need. As a result, you’ll need to make sure your company name is web-friendly. That’s why a tool like Shopify’s company name generator comes in handy. If the domain name linked with your company is available, you’ll know right away. The ideal domain name should be short, memorable, and Simple to Spell. Most experts agree that the perfect domain name length should be 15 characters or shorter. A longer domain name is harder to remember and prone to typing errors. For your web visibility, a.com extension is usually the best option. This is since it is a legitimate extension. Furthermore, most consumers expect that your company’s name will follow the.com extension.
The use of a hyphen in your domain name is enticing. This approach is appealing when your perfect domain name is already taken. However, most spam domains include a hyphen in them. Furthermore, prospective buyers who omit the hyphen may be sent to a competitor’s website or an error page. Take your time to choose the perfect domain name. Then, it would be best if you discovered the ideal domain using a little imagination and a reliable company name generator like Shopify.
3. Consider the Future.
Many small business owners mistake restricting their possibilities by naming their company something that is too limited. It’s only natural to want to call a business after oneself. However, establishing a brand is challenging. Furthermore, a name does not convey a narrative about your company’s history, or it’s all about it. It’s also possible to generate the idea that you’re a solopreneur by using your name. This perception may restrict your target market, particularly as your capacity expands. Finally, adopting your name may make it more challenging to sell your company in the future.
Similarly, deciding on a company name for a product or service might be restrictive. You could wish to branch out into other product lines, which might be difficult if you’re tied to a particular product name. You may be selling leather shoes, for example. But let’s imagine you want to branch out into additional leather goods like sofas and belts. Again, if your company name is particularly descriptive or literal, this move might be challenging.
4. Put Your Business Name to the Test.
It’s a good idea to put your company name to the test whenever feasible. This is particularly true if you’re having trouble choosing between many possible characters. For example, you may poll your target audience to determine which one they prefer.
PickFu, a consumer research tool, may assist you in gathering feedback on your company name. You may crowdsource views from individuals who mean the most to your company using the platform.
Some of the questions you may want to ask your audience are:
- Is the name Simple to Spell?
- Is it easy to read and understand?
- Is it a simple word to say?
- Does it pique your interest?
- Is it conveying an upbeat message?
- What do you believe this company sells?
When time and budget permit, a focus group may be an excellent input source for your company name.
5. Decide on a name that you can trademark.
The process of trademarking a company name may be long and difficult. Some characters, however, are more difficult to trademark than others. There are, however, some broad recommendations that may correctly point you. First, it is simple to trademark made-up names. Before obtaining a trademark, these names had no significance. However, the United States Patent and Trademark Office (USPTO) favors wording like these. These names allude to your company’s role as supplier of products and services. Xerox, Exxon, and Kodak are instances of made-up company names.
It’s also relatively simple to trademark random names. These names include popular English terms whose meanings have nothing to do with the products and services you provide. Consider Apple Inc., a multibillion-dollar technological corporation. Because it does not offer fruit or related things, the firm had no trouble trademarking its name. Finally, evocative names have a lot of potential as trademarks. Customers will have to use their creativity to develop titles that aren’t immediately related to your company’s products and services. Greyhound is an excellent example of a name with a lot of meaning. Although the name does not suggest a bus business, it does convey speed and travel.
Conclusion
After you’ve decided on a company name, you’ll need to check to see whether it’s available. You’ll need to do a business entity name search first. This is usually done on the Secretary of State’s website in your state. This is critical because your registration will be refused if the spot is already occupied. Before registering your company name, you’ll need to do a domain name search and a federal trademark search. The next step is to get a trademark for your company. It is a preventative measure. However, it is not required. When it comes time to register your company, it will verify that your business name is still accessible.
Then you’ll need to start your company. The company might be a limited liability company (LLC) or a corporation. The procedure for incorporating an LLC is simple. It includes identifying your LLC, selecting a registered agent, submitting articles of incorporation, and obtaining an Employer Identification Number (EIN). Refer to the Secretary of State’s website for comprehensive instructions on proceeding. During the filing procedure, you will register your business name. Finally, consider trademark registration. A trademark will provide you exclusive ownership of the company name. Trademarks are pretty significant in terms of marketing and establishing a corporate identity. To utilize as the next stage in your brand’s development, we have an excellent guide on trademarking a company name.
Frequently Asked Questions
How do I come up with a catchy business name?
A: This is a tricky question. You can try coming up with ideas that are related to your industry or something you’re passionate about
How do I name my small business?
A: There are many different ways to name your small business. Maybe you want to be called Cheap Pizza or Best Place For Tacos In The Neighborhood. You can also consider using nicknames or acronyms for the company, like Pizza Hut and IBM.
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