Why a business name matters
Starting a business usually involves finding a name for it, and this is not a task to be taken lightly. A business name is not just an identifier or a simple label, it is the first message a company sends to the world and it serves as the basis for building the brand's identity, connecting with customers and standing out in the market.
If you are still not convinced of its importance, let's review some compelling reasons that will surely change your mind:
1. 🤩 It is the first impression of the company
The company name will be one of the first things that people notice when interacting with the business, whether online, in advertising materials or at a point of sale. The name should convey a precise message of what the business is about and at the same time be impactful and professional. It should also be able to build trust from the outset and help capture the attention of potential customers.
2. 🧬 Reflect the essence of your brand
The name communicates who the company is, what it does and what it stands for. It should convey emotions, values and the purpose of the business. The words chosen can evoke certain emotions or ideas; some words can evoke luxury, others evoke innovation and yet others reflect professionalism. For example, a technology business might opt for an innovative and futuristic name, while an organic food shop might want a name related to nature. A very neutral name may not adequately convey the essence of the company.
3. 😎 Differentiates the company from others
The company name is vital to differentiate the business from the many companies entering the market every day. A generic name or one that is too similar to that of other competitors can be easily forgotten or create confusion.
4. 🗣️ Can facilitate recall and word of mouth
People tend to recommend businesses that they can easily remember, if the name of the business is difficult to remember, write or pronounce it is possible that the business will not be easily found in people's minds. On the contrary, a short, simple and catchy name increases the likelihood that people will remember the business and talk about it.
5. 📈 It can generate more sales
A suitable name that reflects the essence of the brand and its values while conveying emotions and being easy to remember can create a sense of familiarity with your brand and attract organic traffic to the business. This translates into higher sales and less effort and marketing investments.
Characteristics of a great business name
At the time of coming up with a business name, it is not enough just to brainstorm and choose the one you like the most, it is necessary to verify and make sure that it has certain characteristics. Although it is not essential that it has all of them, the more the better. Below we present the most important ones.
Simple and memorable
In the previous section we already mentioned the importance of a simple and easy-to-remember name, now we emphasize this point again by placing this characteristic first. A good name should be quickly etched into people's minds, especially in a saturated market. Simple, short, and visual names are often more memorable, while long or difficult-to-pronounce names are often forgotten.
The best firm names generally have this characteristic. Successful brands often use rhymes, alliteration or words with an attractive “rhythm”. For example, in TikTok the rhyme reflects the sound of a clock, suggesting movement, rhythm and speed. Dunkin' Donuts uses the repetition of the “D” to convey closeness and fun. And KitKat uses two short, repetitive syllables that are perfect for creating a business name that is rhythmic and catchy.
Unique
When a business is launched on the market, it automatically starts to compete for a place in the mind of the target audience. If the name is too generic or similar to other companies and does not capture the attention of the target audience, the business is at great risk. A unique name avoids confusion and helps the company to be recognized. It is therefore necessary to differentiate yourself by creating a completely new word or a combination of words that are simple, short and memorable.
Relevant and descriptive
The name should be aligned with what the business does or represents, not necessarily in a literal way, but it should evoke ideas or emotions related to the business sector. It is necessary to be very clear about the ideas and emotions that you want to convey and make sure that the chosen name conveys them. These could be ideas such as luxury, professionalism, closeness, fun, nature, wealth, tranquility, etc.
Scalable
A great business name should be flexible enough to adapt to the growth and evolution of the business over time. This characteristic will avoid limitations as the company expands, diversifies or enters new markets.
If there are plans to grow nationally or internationally, the name should be easy to understand and pronounce in different languages and cultures. If the plan is to expand the product offering, the name should be broad enough to accommodate these changes.
Cultural sensitivity and linguistic neutrality
This characteristic refers to the ability of a name to avoid negative or inappropriate connotations in different languages and cultures, ensuring that it is inclusive, respectful and universal.
It is important that the name does not generate misunderstandings or unfavorable associations and is easy to pronounce in different regions. This is especially important when the company has an international target market. Several companies have already experienced embarrassing situations by overlooking this important aspect.
Legal and regulatory compliance
Legal and regulatory compliance ensures that a company name complies with local regulations specific to its type of entity, activity and products or services. This includes avoiding duplication of registered names, respecting protected or restricted terms and using descriptors that correctly reflect the commercial activity. It is important at this point to review local regulations and those of the markets in which the company intends to operate.
Steps to create a business name
Creating a great business name requires a strategic and creative approach. We will now take you through a step-by-step process for coming up with a name that has as many of the characteristics listed above as possible.
Step 1️⃣: Define the brand
Before starting to think about names it is essential to have a clear vision of the business, thinking carefully about the values, the perception, the vision, the content and the general image that the company wants to transmit. This can be achieved by asking questions such as: What does the company do? Who is the target audience? What emotions or values do they want to transmit? Simultaneously, it is also important to consider the target audience and what they would value in a company like the one under consideration.
In addition to the preliminary analysis, it is a good idea to make a list of keywords related to the industry, the mission, the values and the characteristics of the company's products or services. For example, if the company is related to ecology, words like “green,” “nature,” or “sustainable” could be part of this list. This list will then serve as a source of inspiration and creative guidance during the name creation process.
Step 2️⃣: Brainstorming
At this stage it is important to let the imagination run wild to generate as many ideas as possible. It is possible to start with traditional brainstorming by writing down words and names related to the industry, values and target audience, without worrying about perfection. While it is possible to do this alone, it is better in company, as this will make the session more fruitful and the final list will be much longer.
Then it is possible to experiment by combining words, making abbreviations or creating neologisms to produce something unique and memorable. It is also possible to use digital tools such as name generators for additional inspiration.
Step 3️⃣: Filter and validate
Once a list of possible names has been generated, it is time to filter and validate them to identify the most suitable ones. At this point it is necessary to take into account all the criteria mentioned in the previous section and evaluate how the different name ideas are positioned with respect to each characteristic. At the end of this stage, the ideal is to obtain a short list of between 2 and 5 possible names.
Step 4️⃣: Final tests
Once a shortlist of names has been compiled, it is necessary to carry out tests to ensure that they meet the brand's expectations and connect with the target audience. This can be done through surveys or meetings with potential collaborators and clients, asking for their opinions on how they perceive each name. It is also useful, before making a decision, to see how the name fits in with the visual identity.
Step 5️⃣: Choose the final name and protect it
Finalizing the process involves choosing the final name after the testing phase, legally registering it and guaranteeing trademark rights in the corresponding offices. It is also necessary to acquire the web domain and register social media profiles to ensure a digital presence.
