Six Mistakes You Must Avoid When Naming Your Business

Naming a business is tough. It must be memorable and stand out. It must be easy to pronounce and market. The name has to be branded easily and shouldn’t cause any confusion among consumers. Here are six mistakes you must avoid when naming your business.

Name taken

Choosing a name that has already been taken is one of the most common mistakes one can make in choosing a business name. This places the business in a vulnerable position and can set the stage for a potential lawsuit. Before naming a company, it’s best to check on the availability.

Name mismatch

Naming a business that could potentially confuse the customer may cause issues in branding. For example, if a business is named something that reminds them of something negative or neutral may cause confusion in the mind of a customer. The name of the business should leave a lasting impact in the mind of the consumer and should be selected with the goal of making a favorable impression.

Basing company name of product or service

Companies can initially start in one place and evolve in different areas. As the company finds it footing and is able to test its products or services in the marketplace, its offerings can change. This means that a company that starts with a name identifying one type of service or product is at risk of deviating from that service or product as time changes. This could lead to advertising problems and customer confusion. Focusing on attributes primarily is a better approach.

Geographically locations

The geographic approach doesn’t distinguish the brand from another one in a region. For example, a brand may find it difficult to pivot to a point in conversation where they can discuss their products and services. If your business expands and opens multiple locations, the business name becomes restrictive and harder to market. 

Using a difficult name

This is a major challenge for businesses. A long drawn out name is difficult to use in phone conversations with prospective clients. It is harder to create a succinct elevator speech with a longer name. Hard to pronounce or remember names is discouraged when naming a business.

Naming a business after a person

Naming a business after a person can cause its share of problems. The person’s name should only be used if it is already an established brand. Naming a business after a person can also set the expectation in the mind of customers that the founder will deal with them directly on all business matters; for growing businesses, this wouldn’t be feasible. If this business ends up being sold one day, it will be harder to sell as businesses named in this manner are more difficult to sell.

Remember that the success of business may be indirectly connected to how it is named. If you name a business something like Melaleuca, you can be flexible with branding. Always keep the consumer in mind when naming your business and consider challenges in marketing the solution or services.