Naming a New Business? Avoid These MistakesPosted by Factor Funding Co. on May 21, 2013
In the life cycle of a company, there's no step more important than choosing a business name. The right business name can become iconic, but the wrong business name can become a joke that dooms the founder to unsuccessful ventures over the years. Despite the importance of choosing a business name, many entrepreneurs commit serious mistakes when it's time to choose the name for their companies. Here are three of the most common naming mistakes you'll want to avoid when you're starting your company.
1. Forgetting to do your research.
This is probably the biggest naming mistake you could make. You can come up with the perfect business name that describes your company vision, but if someone already has that name or a name similar to it, you can get into serious trouble. In most cases, other business owners are sympathetic, but some may take legal action against you, particularly if you begin offering services that infringe on their copyright. Always conduct research on the potential company name before you adopt it for your business.
2. Choosing a wordy business name.
One of the best ways to make an impression on the market is to use a catchy business name. A longer company name may fully explain the services or products you offer, but it may not become memorable to your target audience. Stick with a punchy, short name to avoid getting lost among your competitors.
3. Confusing your target audience with a vague name.
Conversely, it's important that you don't use a company name that is so vague that it obscures your product offerings. You may be marketing a new and exciting service or product, but if the name you use for your business makes it difficult for people to know what you're selling, you can drive away potential customers. For example, if you're in the business of website design and development, then your business name should be one that your customers will readily associate with this sector. A generic name that could apply to any company makes it difficult for you to stand out from the pack.
All entrepreneurs want to create a company that makes an impact and has an enduring place in the market. Selecting the company name is a large part of that process. Avoiding these naming mistakes can help you create the influential company you want.
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