What’s in a name? A rose by any other name would smell just as sweet, right? While there is truth in this adage, if the rose was actually named a Cronkelstench, people may be less likely to stick their nose in the flower. The same holds true for your business name! If you want to succeed in obtaining VC funding and developing branding, you need an intelligent name that suits the business.
Your business name is one of the most important marketing choices you will make. Though your business name alone will not make your business succeed, the image it evokes can be the difference in sustaining a profitable business – or losing customers who move onto your competitor. You need a name that works for you and attracts venture capitalists and customers to want to do business with you.
What are some good elements in a business name?
Select a Name That Means Business
Think about what type of credibility your business name exudes. Most likely, people who want to keep their money safe will not deposit funds into Bob’s Bank when First Ultimate Security Bank is right down the street.
Your business name is crucial in reflecting a positive image to customers and what your business can do for them. Many new businesses are hurt from the start because the owner did not give much thought about its marketing value. Make sure your business name reflects what your business does. With a credible name, venture capitalists will take note too.
Chose a Distinguishable Name
If your new business is not the only type on the market, you need a name that distinguishes you from your competition. If you the only software program that offers real-time data streaming in the market, then reflect this advantage in your name. Instead of choosing the name, “Silicon Software,” opt for “Streaming Software Solutions” to differentiate your company from the crowd.
Simultaneously, while you may be tempted to incorporate your name into the business, think twice about this strategy. Remember, venture capitalists all want to know about the “exit strategy,” which is typically a buy-out or IPO. Can “John’s Software Programming” be a publically held company? Chances are that the incorporation of your personal name makes the company seem too local or small. Think big – and make sure that your business name reflects an idea that can be easily spread throughout national and international markets.
Elements to Avoid
When carefully choosing an effective business name, spend some time evaluating whether it meets any of the following negative criteria. If it does, rethink your name to make it better.
- Clever or confusing names that do not properly reflect your business
- Vague names that tell nothing about the nature of your business
- Hard to spell or pronounce names usually detract customers
- Misleading names – don’t name a business Merle’s Designs if you sell golf clubs
The name game is vital for the success of your business, starting with whether venture capitalists will take you seriously. Think about your business name carefully. Come up with a number of choices, and select the best one that will attract customers and venture capitalists alike.