Part of creating a successful business is creating a successful name for that business. While the name should not be too specific, it should instantly tell customers what the company does. Experts say that the name should use real words when at all possible. However, a made up word is fine if it can communicate the brand message that the business wishes to portray to its intended target.
When creating a name, it is important to invoke positive feelings in a company’s target audience. Customers who feel good about a brand tend to spend more money on that brand’s products. However, a business owner should shy away from a name that is too cute or relies on the use of puns to attract business. Furthermore, a business should not claim to be incorporated if it has not yet done so.
Once a company has come up with a few good names, it is important to test them. Part of the process should include doing research into trademarks to ensure that no one else is using a preferred name or something similar to it. It may be a good idea to work with an attorney during this period. Avoiding an infringement case could be the difference between going forward or spending precious capital on disputes.
The business planning process is one that an entrepreneur should take seriously. One small misstep may result in lawsuits, which require time in court and money to resolve, even the infringement was inadvertent. Consulting with an attorney may make it possible to avoid trademark infringement and help a business start operations sooner.
Source: Entrepreneur, “How to Name a Business“, October 07, 2014
