Research

Five points to consider in naming your new business

Aspiring entrepreneurs often put the naming process (and buying T-shirts, business cards and websites) way too early in the game. While your business name can be really important, don't let it take over your time and attention. Come up with something good enough for now, and then focus back on actually building your business.

2014-04-28

By Sidnee Peck Director, Center for Entrepreneurship Question: What should I consider when naming my business? What legal action do I need to take? Answer: Congratulations! You have an idea; you've created a business model for it, and you've started getting feedback on it. If not, then stop reading this and go do that instead! Aspiring entrepreneurs often put the naming process (and buying T-shirts, business cards and websites) way too early in the game. The more important thing is to make sure you're working on something that matters and then to start creating the brand and the perceptions you want people to have when they hear your name. While your business name can be really important, don't let it take over your time and attention. Come up with something good enough for now, and then focus back on actually building your business. When you do start thinking about your name, consider: Audience: Who will be buying and using your product? Do you want to appeal to multiple audiences? Will you be selling to businesses or individual consumers? What emotion do they need to feel when they think of you? Some examples are trust, excitement, luxury, safety, high-tech or on trend. Value proposition: What do you sell? What might you sell? I have seen many businesses name too narrowly, either by geography or product type. If there is a good chance for growth and expansion, think about that at the start. Online presence: How important is your website for regular interactions with your customer? The domain name is one of the most important aspects of a business that frequently interacts with its market online. If your website is an integral part of your business, then make sure the yourname.com is available. If you find it, buy it! Domain names are really affordable and can be hard to come by. Online search: Will your customers be searching for you within a category online? If so, you should have a name that is very clear and to the point, such as Tom's Affordable Plumbing. You should not use creative spellings, such as "skool" or "lightz," if you rely on Web searches for new customers. The easier it is to remember and spell your name, the easier it is for people to recommend you. Competition: Who are your closest competitors? Take pointers from those who are successful. For example, if your competitors have fun, trendy names and you are reaching the same target market, then yours should be similarly attractive. Just be sure you do not have a name that would be confused with theirs. Once you have a few choices you like, check the local and federal databases to avoid trademark infringement and to register your name if you choose to do so. First published in The Arizona Republic, April 28, 2014.

Entrepreneurship Management