One of the early tasks for any startup business is to choose the name for the business. This is an important step as for most startups, the name becomes the brand. So here are some tips to help you in this process.
Do not overthink it
A new business venture is your special project. So there is a natural tendency to over think the whole process as you seek the perfect business name. However the reality is that no one really cares about the business name other than you. The success of the business will not hinge on the name that you select. No customer will pay you a dollar more for your product or services because of the name. You will be better off spending your time and resources on other aspects of your startup rather than wasting too much time overthinking the name.
In one business venture, I had 3 other business partners. All four of us were different and came into the process of selecting the business name with different outlooks. One business partners came up with a solid suggestion for a name right off the bat. However we were all looking for the perfect name. So we went round in circles for weeks trying to find the perfect name. However with 4 business partners, it was clear we were going to have to compromise. In the end we want back to the start by selecting the original suggestion put forward at the start even though one of the business partners didnt really like the name. With the benefit of hindsight, we can now see that the name we selected for the business did not matter. The vast majority of clients dont even know the reasoning for the business name and it is very rare that they ask about the name. What drove the success of the business was the quality of our products and services, our knowledge and skills, the quality of our people and our excellent culture. Once the business has established a proven track record, the name becomes automatically associated with that track record. Being good at what you do is much more important than the name you select.
Domain names are important
We live in an interconnected world where the majority of business communications will occur through the internet. In this environment, the domain name of the business is important. However its easy to overlook the domain name considerations when choosing the name for the business. Here are some factors to take into consideration:
Firstly is the domain name equivalent of the business name available in your country? If your business is based in Australian you will want to check that the com.au extension of the name is available. It is a bonus if you can also obtain the .com extension of the same name. If its not available, you will want to rethink your business name because even if you can find an alternative domain name, the original domain name will create confusion with your business.
Secondly, is the domain name easy to type, easy to remember and not too long. The longer or more complex is the domain name, the more likely it is going to be mistyped by staff, clients and potential customers and the more likely that critical message will go missing. This might seem like a little thing, but in the course of running a business, a mistyped domain name can result in a key message going missing that can have a major impact on the business or a client in the future.
Finally, domain names are inexpensive so get it registered straight away. Further register any associated domain names straight away. These may be variations in the business name reflecting different business activities that you may pursue in the future. For example your may be starting out as XYZKitchens but might expand into bathrooms later so why not also register XYZBathrooms to future proof your business name.
Check the business name is not in use
You think you have settled on your business name and when you go to do a check of business registry records you find that someone already has the business name – bam – you have to start again. It is better to check the business registry records and also search the internet early in the process so you dont waste too much time on business names that are taken. If the name is available, then register the business name straight away. In Australia it is very easy to do online through ASIC and, if all goes smoothly, can be submitted and confirmed in less than an hour.
We had picked the name for a new venture, checked the appropriate domain names were available and the business name check was clear. Whilst we were not planning to activate the venture for 12 months, we registered the domain names. We did not register the business name. Then six months later, a new venture by a third party popped up using the name we had planned. Whats more, the venture was in the same industry and operating in the same city. The business name was still not registered so we could have pushed on with the name, having already locked in the domain names. But having another venture using the same name and operating from the same city would have caused confusion and the last thing we wanted to do was cause any issues for another venture. So we changed the name, registered new domain names and this time we registered the business names straight away.
Check the appropriateness of the name
Its very easy to come up with a great name and think your on a winner only to find out later down the track that there is an issue with the name. What may sound like a great name in English could sound similar to an in-appropriate name in another language. It may not matter if that other language is irrelevant to your target market or your future growth plans. But it would be a terrible outcome to be several years into a venture, having invested a lot of time and effort in your branding, struggling to gain traction in your target market to then be told by a potential customer that your name sounds very similar to an inappropriate word in their native language. The simplest way to check is to test the name with some people in your target market.
In the above mentioned business venture with four business partners, one of the early front runners for the name was different plays on the number four. It seemed obvious to us – four business partners – so lets make use of the number four in the name. When we started to test versions of this name, it was pointed out to us by a Malaysian friend that the number four is considered unlucky in China. The number four is pronounced as si in Cantonese, which sounds like the word for death. So many in Asia consider this to be an unlucky number. So we dropped using the number four in the name and, with the benefit of hindsight, it was the right decision because several of our most important clients were native Cantonese speakers from Asia.
The name becomes the brand
The name does not really matter. What matters is that you are good at what you do. In time, as the venture becomes successful, the name will develop a life of its own and will become the brand of the business. For example in 1949, who would have though that the name Adidas would become one of the most recognised names in the world today? The same can be said for names like Nike and Hyundai. Only a geek would think that the word Facebook was a good name for a new venture but today it is one of the best known names in the world. Dont get me wrong, selecting a great name and brand can help the venture. However it does not replace being good at what your do and working hard to achieve success.
You can rebrand
Whats the worst case scenario if you get things wrong with your choice of name? You rebrand. You would prefer to avoid having to through the process of rebranding as it costs money and is a distraction from running the business venture but its not that bad particularly if you do it early. The plus side of a rebranding is it gives you a new reason to get in front of your clients and talk to them and it can create that new car freshness feel for the venture. So the message here is do not waste too much time worrying about perfecting the name because if you do get it wrong, you can just rebrand.