My Alter Ego – coming up with a business name

Choosing a name for your business is always tough. You do not want to be too vague or too specific. It should possibly hint at what you’re intending to do but not limit you in case you want to diversify after a while. Naming your company is a very big step, especially if you’re looking to incorporate it. If you’re a sole trader or partnership, of course your trading name is still very important, but at least you are not bound to use the same name simply because that’s what you registered at the Company’s house with!

There are multiple factors which should be taken into account when choosing your name. The priorities of each factor may differ depending on what field you’re in.

1. Branding – can you use your name effectively to brand your business? Is it catchy to your customers? Does it conjure up some image of what your company is like?
2. Availability – Is the same name already being used by another company? If you are forming a Limited company, you cannot have the same name as another existing limited company. In case of a sole trader or partnership, duplicate names are slightly less of an issue. Stay away from copying big companies, but if your name is the same as a small shop somewhere in Scotland, chances are nobody will mind. Check on the Company’s House website if your name is available.
3. Scope – If you decide to expand/diversify/specialise your business or take it through different media (the internet, etc.), how compatible is your chosen name with these possible business avenues? In case of wanting to sell/advertise online: Is your business name available as a domain name?
4. Clarity – Although this should probably be understood; your business name should be easy to understand, possibly easy to spell and write down and not confusing for your customers. Check for similarities between your business name and other words/phrases you do not wish to be associated with. Sometimes it helps to take a step back while doing this, and call in the help of a friend or family member. Outsiders can sometimes spot the obvious more easily, because we ourselves tend to get too focussed on details.
5. Image – Although closely related to the “Branding” aspect; does your business name represent your image and reputation? Do you want people to see you as serious, to the point, good at what you do? Your name should suggest the qualities you find important or which distinguish you from the crowd.

So as you see, all these factors (and undoubtedly some more) are very important while choosing a name for your business; but in varying measures –for instance if you are trying to set up a web based business, of course it is more important that your name is available as a domain, and as most of your customers would come through search engines and advertising, having a very clear name that is easily understood by people may be a little less vital to the running of your company.

The next steps… brainstorm research and evaluate to choose a name that’s right for you! Once you’ve found something you and your surroundings like, it is time to think about the rest of the Branding exercise; a logo, website, brochure, stationary, signage… All of which should be consistent and properly represent your company and what it does.