The “Name That Business” Game
True or false – The single most popular reason cited by business Angels (surveyed in 2009) as to why they did not offer start-up funding to the businesses pitching to them was a lack of connection with the company name?
Don’t be ridiculous, of course it isn’t true! While selecting the right name for your business plays a part in its chances of future success and therefore obtaining start-up funding, there are many other factors also at play. Admittedly, if you decide to name your dog grooming company “Pinkies Poochie Powder Puff Parlour” you should not be surprised if the offers for start-up funding don’t come pouring in. So this article is all about the do’s and don’ts of naming your business to make sure that you don’t scare off the start-up funding it needs before you’ve even opened your mouth to pitch.
Do you really need to find the perfect name?
The first thing to mention is not to get too bogged down in the name. I’ve known all too many people who have spent so long searching for just the right name that they have lost all momentum. If there’s one thing that’s guaranteed to keep your business from the flood of potential start-up funding that it deserves, it’s the business never getting off the ground in the first place. While it’s preferable to launch your venture with a name that you feel comfortable with, that others can identify with, and that will be the focal point of all future branding, it’s rare that you’ll get this right first time. The important thing is to launch your business and if you decide on a name change later on this really can be a simple process.
How do you choose the right name?
If you’re looking for your company name to be your brand identity (i.e. if you have a substantial amount of money to invest in promotion) it should be short, memorable and not necessarily anything to do with your products or services. What does Orange have to do with mobile communications or Wii have to do with game consoles? Not much, but they have become synonymous with their sectors due to a catchy name and massive advertising budgets. However if your budget is smaller then you may wish to go for a name that is a little more obvious.
When you go looking for start-up funding it’s important to be able to explain what you do clearly and concisely. You want your audience to understand what you do immediately or you may lose their interest. Obvious names such as Scribbles Writing Services for a copywriter, Get Visible Limited for an SEO specialist or Excess Baggage Company for an organisation that ships excess baggage overseas for you, leave no doubt in the audience’s minds as to what you do, and this can provide a strong marketing base.
In-between these two are all the company names that rely on wordplay and imagery that are supposed to draw the audience into more of an emotional response.
You really can choose from the whole pool, but it’s important to consider your audience and what they would respond best to.
When can a name get you into trouble?
Start-up funding will certainly not come your way if you break any one of these fundamental rules:
- You should never use any offensive terms within your company name.
- You cannot add inappropriate national importance to your name with words like: British, European or International.
- You are not allowed to use words such as: Association, Authority or Institute without prior permission.
- You cannot suggest a link to government or royalty with words such as: Parliament, Royal or Queen.
- You cannot use a name that has been trademarked, so it’s important to check the register at the Intellectual Property Office.
- You should not use a name that belongs to an incorporated company. Therefore you should check the records at Companies House.
- Even if you are not going to be incorporating your company, you should check local directories and the internet for businesses with a similar name to yours because this may cause conflict, especially if you are close to one another geographically or provide a similar offering to your customers.
What can selecting the right name do for your business?
Well it cannot guarantee you success, longevity or start-up funding, but it can:
- Help your audience understand what you are offering them.
- Provide the base for a brand that people can identify with.
- Create an emotional response to your business.
In 2009, there were 2.14 million businesses registered for VAT in the UK, and many more sole traders, partnerships and small businesses that were not. So if your venture is going to catch the eye of its intended audience, its buying public or sources of start-up funding then it is going to have to stand out from the crowd. Your company’s name is the first thing anyone will see of your business, so choose one that does your venture justice.
Image © Jason Alley
