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The Power of a Name: What to Call Your Small Business?

Woman with Open Sign

A name is how essentially everyone you ever meet will refer to and consider you. It is perhaps the word you will hear most in your lifetime – so it helps to have a good one!

From the moment your parents select your name, you could be on a path for certain success or imminent failure, according to a number of studies.

The same can be said for your business’s moniker. The name you give your small business can have a surprising effect on how consumers identify your services – which in turn impacts your business finances.

When starting up a new small business, here are some quick tips to keep in mind when choosing the right name.

Make it simple

Researchers from New York University found that people with names that are easy to pronounce are more likely to move up the corporate ladder. As one of the study leaders, Adam Alter, explained to Wired, “When we can process a piece of information more easily, when it’s easier to comprehend, we come to like it more.”

This phenomenon is the same for companies, Mr Alter revealed. Further research by his group found that companies with simple names typically performed better in the stock market.

The key here for your small business is to select a title that is easy to remember, simple to spell and does not confuse your consumers.

Make it mean something

Mysterious names that comprise of made-up words or do not inform people what your company actually does are generally meaningless.

Try choosing a name that at least implies what industry your enterprise operates in. For instance, Apple Computers didn’t drop the computers from its name until the executives were sure consumers knew what their company did – and after their offerings extended away from the desktop computer.

Make it internet friendly

No matter how small your company, you should consider setting up a website. However, this can cause certain challenges when choosing a name. The wrong moniker could leave you with a web address that is unintentionally inappropriate – like Choosespain.com, which was a site for rental accommodation for holidays in Spain, not a community for people with an interest in discomfort.

Just remember to pull apart all of the variations of your small business name – particularly if you are using more than one word, or need to add descriptors to get a unique domain.

Developer Working In His Office.

Make it location-ambiguous

Some smaller companies are named after the area in which they were launched. However, this can cause problems once your enterprise goes state-wide, national, or even global.

If someone was to search for a local company that offers your services, but saw the name of another city in the results, they may assume you are too far away to reasonably fulfil their needs.

A simple, informative name should help you avoid turning your customers away before they have even stepped foot in the door.

What’s the worst company name you’ve ever come across?

This blog post is for general information purposes only and is not intended as financial or professional advice. It has not been prepared with reference to the financial circumstances of any particular person or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article.

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