Naming Your Company

One of the first big challenges you will face when starting a business is figuring out what to name your company. Many people believe that picking the right name will make a significant difference in whether they succeed or fail. They believe the right name will create "buzz." and the wrong name will make it difficult for people to remember them.

Large corporations that are going through a name change or are naming a new division will hire marketing firms that specialize in developing names. One of my clients spent more than $100,000 researching names and testing them on prospective buyers.

I believe that choosing a bad name can cripple or kill a business, but spending a lot of money on developing a name is not significantly better than simply making a list and selecting one that you and your advisers, friends and potential clients find acceptable. No matter what your name is, you still need to deliver results.

Before you put pen to paper or strike a key in your quest to find the appropriate name, keep in mind the following:

Audience: Many companies have made mistakes by picking names that are culturally offensive. The last thing you want to do is to insult an ethnic group.

Length of Name: Make sure the name is easy to spell. You don't want someone going to an Internet search engine or calling information and misspelling your name because it is either too long or so unusual that they can't get it right.

Meaning: Pick words that convey a positive image.

Service: Think about words that best describe your service. You don't want to pick words with meanings that have little to do with your service or that will confuse potential clients.

Name Origins

Most people don't have any scientific process for developing a name, or can't afford to hire a marketing research firm to develop a name. Most names of companies come from the following 14 origins:

Animals: Some people choose names of animals, such as tigers (Tiger Consulting, a software-consulting firm in Thailand), to show that they are aggressive and hard-driving.