It is the age of entrepreneurship and start-ups, and every new business owner dreams of becoming the next unicorn. They set up every aspect of their venture with optimism, nervousness, and excitement. However, choosing an appropriate name for their new venture is a challenging task. There are many factors to consider when choosing a name, as it is the business’s first introduction to the outside world and is its foundation for branding, marketing, and goodwill.

Commercial value of a business name
Besides being the company’s identity, the name of a business also helps increase the cumulative value of its tangible assets, such as brand names and goodwill. Apart from representing the company, the name is crucial in building new and long-lasting relationships with potential customers and other stakeholders. A good relationship develops brand loyalty, which is keen on increasing revenue and profits. Hence, when naming a business, while it can be based on emotions and sentiment, owners should also consider the future commercial value it can generate.

Mistakes to avoid when naming a business
Here are some of the common mistakes business owners should avoid while naming a business:

1. Not considering legal implications
When selecting a name for one’s company, it is critical to conduct comprehensive research and select a name that has not been registered or trademarked. Many entities register good names and may not use them immediately, but they use them later when they start a new subsidiary or expand their business. Choosing a name that has already been registered but is not in use can lead to legal complications, especially for a new business. Though it may cost a little, a thorough trademark search can help an individual save costly lawsuits and penalties.

2. Not considering its marketability
A new business’s name must be impactful enough to remain in a customer’s memory for better marketability. Choosing a complex name can reduce the scope of marketability and lead to financial loss. It is best to avoid fancy names unless the nature of one’s service demands it. One must look for names that are easy to pronounce, spell, and write. Though most transactions are digitalized, there may be occasions when someone has to write the name of a business on a piece of paper. They should find it easy to write or use the name in conversations.

3. Not thinking from a customer’s point of view
The name of a business is crucial for creating a positive image in the minds of the business owner, clients, and stakeholders. It should also evoke credibility and trust. If the business delivers good quality products and services but has a name that does not evoke trust and credibility, it could become a wasted effort.

4. Choosing a generic name
In today’s highly competitive markets, businesses need to stand out from the crowd and make a name for themselves. This is especially true in the digital age, where social media and the internet have made it possible for companies to have a global reach. A generic name can hinder a business’s success as it may not appear in search results or be easily picked up by search algorithms. This is why choosing a name with a meaning or story relevant to an individual or their product or service can be more beneficial in the long run.

5. Choosing a descriptive name
Some business owners may use simple names describing their products or services without putting in extra effort to come up with unique names. Such names may not leave a lasting impact on their clients’ minds. On the other hand, there have been many shining examples of businesses where the owners chose names unrelated to the product or service but have become extremely successful.

6. Choosing a name that USPTO could reject
Once an individual forms the business, they must register the name with the Federal Government and file it with the United States Patent and Trademark Office. The name should subscribe to the criteria set by USPTO. USPTO reserves the right to reject the following:
– Descriptive names
– Misleading names
– Slogans
– Generic names and phrases
– Disparaging words and names

7. Not securing a domain name
In today’s business world, online presence is essential for compliance and business purposes. Once an individual decides on a name for their business, just like registering for a trademark, they should also search if the domain names are available and secure them. With a domain name, there will be consistency in the business name across all professional and social media platforms. Many websites register domain names for an annual fee, and it’s always a good idea to check the availability of the domain name before finalizing the name of the business.

8. Asking too many people for opinion
While it is important to test the impact of one’s business name with a small circle of business associates, family, or friends, asking too many people for their views can become counterproductive. The conflicting views from people may confuse an individual and cause self-doubt.

9. Being rigid with name choices
When starting a business, it is important to avoid being too rigid with name choices. If one has decided on a name and later realizes that it is unsuitable, it is better to change it. Similarly, if one receives negative feedback about the name and wants to change it, it is possible to ask for amendments from local authorities and the IRS. Being too attached to a name and unwilling to change it can also be a mistake that business owners should avoid.