One of the biggest mysteries of business, and most of life, is how businesses grow into the names they choose. Your business name is one of the most important factors that determines not only your customer’s mindset when they buy from you, but your business operation and overall success.
For example, Amazon Inc. was named after the Amazon rainforest, the largest tropical rainforest in the world. Spanning billions of acres in several South American countries and has a serious environmental influence on the earth. It produces over 20% of global oxygen, 80% of the world’s fruits, 25% of pharmaceutical raw materials, and other abundant resources.
Relate this with Bezos’s Amazon, and you’ll understand the company’s ambition of providing A to Z of your needs and still leaving you with a smile. Amazon’s name provides the company the opportunity to truly have an unprecedented global growth and real influence, something we’ll explore later on.
But, the situation isn’t unique to Amazon alone, researchers found that companies listed in the stock market with great names earned 11% more on daily trade than those without, and made 33% more at the end of a year.
Why Your Business Needs The Right Name
It Directs and Sets the Scene
By far, the most obvious contribution your business name makes is the mood it sets with your customers. The mode, or tone, is the feeling and expectations your brand name feeds to the minds of your customers and employees alike. That way, your employees know what to give, your customers know what to expect
RedBull will always be associated with adventure and fun because it’s the mood their brand communicates. Likewise, your name is the first element that contributes to the overall emotion your business creates.
It Defines Your Business
There’s a reason Facebook can only invest in social media related services, while Amazon can practically do whatever they want.
Your name shouldn’t put your brand in a box. Although your name needs to be simple, it shouldn’t limit your company, but rather, It should be open-ended and allow the future growth and scaling of your business.
It Informs your Market
Your business’s name should suggest its intrinsic value to your customers, investors, and speculators. Generally, your business name should communicate your personality, mission, culture, and intent of your product to your customers. It can be the difference between millions or billions in business valuation.
Consider These Things While Naming Your Business
Consider the Future
First, start with your goals and ambitions for the future. Know the extent and level you want your business to grow, the direction, style, and path of your business. Then ensure the name of your business follows suit, so you can avoid unforeseen circumstances.
Your brand name shouldn’t be temporal.
Avoid Common Errors
This is where creativity may fail and professional knowledge prevails. Why? Well, because not every creative name is suitable as your business name.
Common issues with business names are names that are
- Sounds bad.
- Use power words.
- Easily mistaken for some other name.
- Have unfavorable meaning in foreign languages.
- Symbolic words.
- Transmutation, and so much more.
Ensure that the name your business takes doesn’t expose you to any legal risk with other brands. This includes trademark claims, internet searches, domain, secretary of state search, and other issues.
If you’ve completed all these processes, then it’s time to find out just how much your target customers like and want to associate with your new name.
Go over the reactions and feedback from your customers, and find out if their feedback complements or disagrees with the intended goals of your business name. This is where you decide to continue working with a name or start a fresh search.
It’s best to test a bunch of names and pick the best one.
Let the Name Speak
As you can see for yourself, choosing a name for your business, isn’t a walk in the park. It’s a process that involves lots of brainstorming, errors, experiments, and tests.
By following the principles here, you should have a much easier journey through this phase.