In this fast growing economy, it is common to see businesses in all the nooks and crannies of the world. The sole proprietorship is having the highest number of registrations. From the home-based entrepreneur to the shop owner to the small office consultant, people are taking advantage of the freedom they enjoy by becoming their own boss.
Billions of corporate money are invested each year in starting new businesses. A visit to the Lagos office of the nation’s registrar of trade names supports this fact.
While it is true that anyone can start their own business, many entrepreneurs have not achieved the leverage that comes from this experience. This, to a large extent, has to do with the underprivileged names these businesses carry.
A business doesn’t really start with writing a business plan or opening a bank account. It starts with choosing a name. There is more to business names than just identity. The correct name is an advertising tool. If the name doesn’t describe the nature of your business, potential customers may not realize that you offer something they need.
Let’s take a look at the top 10 mistakes to avoid when choosing a business name:
1. NOT KNOWING WHAT KIND OF BUSINESS YOU ARE IN. It is surprising that some employers choose a name with little or no indication of what kind of work the organization actually does. Including a descriptive word in your company name can be helpful when marketing your products or company. This may be possible if you have identified what sets you apart from the competition. Take the following examples:
adenix and sons
One Love Enterprises
only your purchase
Can you tell me what these companies do? No! They trust that customers already know who they are (a tricky proposition for new businesses).
2. USING A NAME THAT IS TOO LONG, DIFFICULT TO REMEMBER, WRITE OR PRONOUNCE. A good name is something that can be mentioned on the radio or over the phone without explanation. People will make a quick decision based on their first impression of your business name. Take the name to a spelling test and ask others to spell it. So choosing a name like “Lolitoesy” is not good.
3. NOT SPENDING QUALITY TIME BRAINSTORMING. Trade names are not improvised creations. It is the result of possibly long days and nights of brainstorming, searching the thesaurus for synonyms and antonyms, interrelated words, and words that have some sort of relationship to the proposed business activity. Large companies even hire expensive consultants to help them choose the right name for their business or product.
4. PROMOTE A NAME WITHOUT TESTS AND CHECK ITS AVAILABILITY. Once you’ve picked a few names, test them out on friends and family, potential customers, and everyone you know. Ask them what kind of service they think it provides and what they think of the name. You will be surprised how honestly they give you suggestions. You can then proceed to check availability at the nearest naming registry after you are satisfied that it is for the best. Don’t waste money on letterheads and courtesy cards trying a business name already chosen by someone else.
5. CHOOSE WORDS WITH NEGATIVE OR NEUTRAL CONNOTATION. The connotation of a word can be positive, negative, or neutral, depending on the emotional associations that people generally make. If you’re starting a transportation business, for example, you don’t want it to have a weak or negative name, like “Willow Twig Trucking” or “Kitten Transport.” You want a business name that conveys strength and reliability. An option like “Stone Creek Transport” would be much better. Remember: words are powerful.
6. NAME A COMPANY IN PLACE OF THE FOUNDER OR ANY ELSE. It is a common trend for a company to bear the name of the original founder. This approach can lead customers to expect personal care and attention from the owner. Using his name, followed by the type of service works well if he already has an established reputation in his specialty. But, if you plan to sell your business one day, a business with the name of the business owner is less attractive.
7. NOT CONSIDER THE FUTURE. Robert Dilenschneider wrote about a public relations person who expanded his services from just writing to media relations and had to change his business name from Miller’s Writing Services to Miller’s Communications. Aside from brainstorming, he needs forethought in choosing a name. Even if you’re operating a highly specialized product, select names that represent a broader category of your product line.
8. NOT GETTING THE RIGHT DOMAIN NAME FOR YOUR BUSINESS. If your business is almost 100% online or you’ll be better off having an online presence, you may want to consider starting your search by first getting a suitable domain name for your website. In the modern world of the Internet, where people automatically turn to the web for information, it pays to have a domain name that reflects your site or business.
9. FAILURE TO AVOID THE LAWSUIT. Be unique. The best you can be trying to be someone else is second best. Avoid being a copycat. Using a name that is similar or identical to another company’s can cause you problems, including legal issues. If you call your equestrian clothing line “Polo Sporting Designs”, the holder of the “Polo” trademark, the giant Ralph Lauren, can slap you with a lawsuit.
10. DO NOT CONSULT AN EXPERT IN BUSINESS NAME. While the services of attorneys, public accountants, and certified clerks can be invaluable in registering a business name and company, these categories of professionals may not understand the sales and marketing principles that copywriters can use to their advantage. . A good copywriter is always looking for ways to help you communicate more effectively with more people.