18 Mistakes to Avoid When Naming Your Business

Choosing a proper business name helps you to reflect on what your business does. The wrong name can create enormous financial and legal obstacles in addition to failing to connect with customers. Here we have listed the top mistakes that you must avoid for your new startup.

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Starting a business in today’s highly competitive industry requires striking out from the competition. A catchy, relevant, and appealing name is crucial for a startup or new company to have the greatest probability of being discovered. The chosen name for the firm should continue to be appropriate as the business, its goods, brand, and reputation evolve through time. To help you choose a name for your LLC business here we have discovered the mistakes to avoid when naming your business.

Many new companies find it difficult to choose a name. An attractive and distinctive company name can help to increase brand recognition and business. On the other side, a doubtful or badly chosen name may draw criticism, turn away customers, or simply make your new business unengaging. Read more to discover the list of mistakes to avoid when naming your business.

Some decisions about a company name are based on the owner’s personal tastes, wishes, or even their already well-known name. But in the majority of cases, it pays to avoid these typical business naming errors when you start a business and select a business name. A name has the power to build or kill a new business, as numerous businessmen have realized. The naming blunders listed below should never be made when coming up with a name for a new company. Read our guide on Top AI Business Name Generator.

The most crucial identification for any brand-new firm is its name. It’s how people will recognize and recall you to them. It contributes to the creation of your logo and your complete visual brand because it is a component of your company’s brand identification. So, it’s not a choice you need to make quickly. Read our guide on Best Logo Maker And Designer.

So, here are the most common things to avoid when naming a company, along with tips on how to do so. Let’s examine each of these errors on a deeper level.

Before we start, check our Top LLC Formation Service Companies In The United States:

What Is A Business Name?

The name by which a company is known is its business name. It might be the owner of the company’s own name, or maybe something totally completely different from the company. All official documents, including letters and invoices, should utilize business names. Some companies must also have their name visible in the places where they conduct business. Check our guide on Steps To Register Your Business Name

There are certainly other business name guidelines that are dependent on the structure of your company and must be followed while picking a name. Limited corporations are not permitted to use their own names as the name of their business, whereas sole traders and partnerships may.

Check our guide on Sole Proprietorship Vs LLC: How To Choose?

Additionally, sole proprietorships and partnerships are not permitted to use names that contain the words “limited,” “Ltd,” “limited liability partnership,” “LLP,” “public limited company,” or “plc,” whereas limited companies are typically required to choose names that end in either “Limited” or “Ltd.”

What Are The Mistakes To Avoid When Naming Your Business?

Even if picking a name for your company is crucial, you must avoid these typical mistakes when naming your company:

1. Avoid Choosing A Difficult Business Name

For best impact, you should aim for a business name of one or two words. Leave it alone if the word is hard to read or speak. A difficult word will end in failure to remain in the target customer’s memory. Avoid using obscure analogies that your clients won’t comprehend without clarification. Avoid titles that are incredibly precise or witty. Just as it’s permitted to combine two words, keep in mind that you are free to find another word to use as the name of your company. However, if you choose this course of action, proceed cautiously and be ready to pay more for a promotion.

2. Choosing An Unavailable Name

Consider delaying the legal requirements of naming your company until the very last stage, as you might be surprised to discover trademark concerns with your top pick. If you want to know if your preferred name is already a registered trademark, you can verify with the USPTO. Keep in mind, however, that trademarks may also be authorized under common or federal law. Consider working with a specialist business or lawyer to carry out a more thorough trademark search to make sure there are no concerns. Don’t forget to bring the accessibility of similar domain names into account when nailing down name suggestions.

3. Avoid Choosing A Name That’s Too General

It can be appealing to include your region, town, or city in the name of your new company, especially when starting a service-oriented business. Don’t do this in any way. During the early stages, this strategy may help you improve your search rankings and attract local clients, but it can also work against you by discouraging potential clients who believe your business doesn’t relate to them because they don’t live in the region specifically mentioned in the business name. Avoid setting boundaries! Remember that growth is the best outcome for your company. Changing a company name, later on, can be expensive and time-consuming, so make sure to pick anything more “universal” at the beginning.

4. Avoid Using Unusual Spelling Of Common Words

If you’re the type of person who enjoys being unique or if you’re having difficulties coming up with a name that isn’t in use, you could be compelled to use a misspelled version of a well-known term in your company. If you don’t have a lot of time and effort to invest in increasing brand recognition, make a conscious effort. Additionally, that consumer might never find you if you haven’t done a decent job optimizing your website for search. Similar to this, if they heard about your store from someone, they might assume the name of the business includes the owner’s last name and look up something else different from your business name.

5. Avoid Using A Business Name That Is Too Long Or Difficult To Pronounce

When naming a new service or brand, be sure the name is simple to say, understand, and hear (for instance, keep in mind that the letter “s” can sound like the letter “f”) as well as simple to pronounce. Your new company name should ideally be composed of terms that are simple to remember, spell, and pronounce. Additionally, it should be brief enough to fit in a portion of your website and be large enough to put on a sign or a business card.

Few people would remember your brand name, if it spells like “Xesdosbox Company,” to tell others about it or look it up online. It actually has the meaning “non-existence,” and any company using it or anything that’s even half that long as its name is likely to experience that. If a buyer can’t recall your name, they’ll go to someone else and buy what they want or need.

6. Avoid Failing To Do A Trademark Search

Probably one of the hardest things that could happen to a new company is for the owners to invest time and money in marketing a particular name only to discover that it has already been taken. Someone could be in possession of the rights even if they haven’t filed a trademark registration since they used it first. A simple Google search is necessary, and you might want to add an expert trademark search to it as well.

7. Avoid Involving Everyone In Your Decision

Humans live in a civilized culture, so it would seem right to include anyone such as your friends, family, coworkers, and clients in a choice that is essential. This strategy, nevertheless, has several drawbacks. Choosing only one name means that you run the risk of losing the very people you’re wanting to engage. This is the first and most evident fact. Secondly, consensus decisions frequently lead to names that are extremely safe and unoriginal. A better approach is to choose only the individuals you believe to have the company’s best interests in mind and to only involve the key decision-makers while naming your business.

8. Always Research Competitors’ Brand Names

Several companies, especially those operating in the same industry, fail to appreciate the value of brand exposure and use names that are nearly identical to those of rival companies. The brand name should be catchy and clever, separate you from the competition, and sum up what the business offers.

9. Turning Your Business Name To Metaphors

Your thought pattern is likely to shift to metaphor once you’ve moved past the basic, informative word options. If not overused to the level of being repetitive, these can be excellent. For instance, the world is filled with titles like Summit, Apex, Pinnacle, Peak, and so forth because many businesses believe they are the best in their industry. These names are overused, despite the fact that there is nothing particularly wrong with them. You’ll do much better if you search for metaphors and groups of words that are constructive. 

10. Choosing The Wrong Name And Then Refusing To Change It

Many business owners are aware that there is a concern with their name, but they still remain hopeful that it will magically fix itself. The original business sometimes makes some people think of something entirely different, none of which was genuine or what the owner of the company wished to be connected with.

When sales staff attempted to clarify their novel idea of relocation and storage, this made things much more unclear. The remainder is rapidly fading into history as the business has grown both domestically and globally. Take some time to consider some of these challenges before starting a new business or growing an existing one in the middle of a startup craze. You may come up with a name that is successful in the short and long run by using your imagination and preventing these potential mistakes. It will facilitate upwards growth as your business soars to new heights, much like the first core of a skyscraper.

11. Avoid Spelling Your Name ‘Creatively’

When creating a whole new brand, one of the biggest failures entrepreneurs do is to try to spell the word “creatively.” The problem with names like Xobni, Bawte, or Wesabe would be that you’ll constantly need to spell them out when you mention them because that’s not how people pronounce them. This could lead to misunderstanding, as well as problems with how potential clients reach your company.

12. Avoid Following A Short Term Trend

Make an effort to choose a name that will be popular for many years. Many words are memorable, but after a while, they become overused and irritating. Although they have some power over them, businesses cannot completely dictate trends. Trends frequently become associated with particular groups or assumptions, although your desired target market may not necessarily fit into those assumptions.

13. Avoid Choosing Your Name Based On Domain Availability

Select a premium brand that is memorable and compatible with your field. Don’t feel obligated to name your company after which.com is available because consumers, Google, and other search engines are now much more familiar with domain name extensions such as .oi and .co. It is always advised to use a service to check the availability of other social handles before taking action.

14. Avoid Overthinking Your Name

The problem with corporate names is that they are constantly overinterpreted. Your business doesn’t have value because of your name. The worth of your name is given by your firm (and how others perceive it), not the other way around. Unlike a name, your brand is considerably larger.  Make sure your name isn’t doing all the work; it’s only one minor strategic representation of your brand.

15. Avoid Getting Stuck In Alphabet

When print ads and printed directories were the standards, having a company name that began with a certain letter could be advantageous as many business listings were sequential. And some companies still appear to name their companies in this manner. A, B, or C can be used as the first letter of your company name to assist it in appearing first in a print directory, but being found in print isn’t as crucial as it once was. Instead, consider how your name will appear in a Google or Bing search results list of nearby businesses.

16. Avoid Being Isolated

Now It’s time to talk to people in your target audience and receive some feedback right away. Check those names by a few close friends, family members, and coworkers. The number of items they draw to your mind that you had previously missed can surprise you. When picking a company name, a little positive perspective goes a long way.

17. Failing To Check If Your Chosen Business Names Belong To Another Business

You must make sure that you won’t be infringing on someone else’s trademark rights to a specific business name before deciding on a final name. Avoid having to change your business name in the future or risk having to pay financial penalties. Using a name that is the same as or weirdly related to the one you intend to use can be avoided in a number of ways:

  • Try entering the name of your potential company into a few search engines to see whether it pops up.
  • To see if your prospective name is already on their list of fake or assumed business names, often known as dba check with your county clerk’s office (doing business as).
  • Enter “Your State Secretary of State” into your preferred search engine to conduct a business name search on your state’s database for corporations, LLCs, and limited partnerships.
  • Find out if a selected name has already been registered with the U.S. Patent and Trademark Office by searching the federal trademark database (USPTO). Through their website, www.uspto.gov, you can do this. Go to “Trademarks” and then “Search Trademarks” once you’ve arrived.

18. You Haven’t Considered Branding And Timing

Even if the company name is essential, the image you build around it is more crucial. The control of perception over the first six to twelve months is largely responsible for how well or poorly a name is viewed. Furthermore, a company name is never final and may be modified, so stop waiting for the ideal name to come to mind. Starting now is preferable to delaying and moving backward.

What Are The Best Practices For The Perfect Business Name?

After going through some things to stay well clear of, let’s look at some excellent places to search for ideas for the ideal company name.

  • Check into possible interpretations of your company name: Check to discover if your company name has any particular connotations, especially if you cater to clients who are linguistic.
  • Find out whether other businesses use names that are similar to yours: After you’ve already finished your name search, it’s important to make sure that no other companies have names that are too similar to yours. It may be challenging to differentiate yourself from other firms as a result.
  • Verify whether URLs and social media handles are available: Modern businesses need websites and social media marketing. You should use your company name in your website address and social media profiles.
  • Consider how your name will appear on a website or logo: Business branding is influenced by company names. Think about how your company’s name contributes to its physical brand.
  • Look for clarity by keeping your company name short, simple, and straightforward. Don’t make customers think about your name a lot.
  • Use a name that conveys some meaning: The ideal business name should suggest something vital and inspiring about your enterprise. Though catchy names like “Google” and “Yahoo” have some appeal despite having no real value, these names will cost a lot more to the brand.
  • Make a thorough Internet search: Once you’ve chosen a name you like, look it up online. You’ll likely discover that somebody else is already employing that company name. That won’t completely steal the show, but it ought to make you think twice.
  • When saying the name out loud, make sure it sounds good: Sometimes names look great on paper but sound terrible when spoken. Also, if it’s spoken out loud, watch out that it’s not spelled wrong.

Conclusion

A good business name should be well in your hands if you avoid these frequent pitfalls and put some time and thought into the process of coming up with a name for your company. In contrast, a strong, distinctive name can be quite beneficial to your marketing and branding activities.

The ability to make a good first impression on prospective clients and business partners is through the name of your organization. Your company name is your most essential marketing tool, supporting all of your other attempts to increase revenue and word-of-mouth. Use these suggestions to help you choose a name that will help you build a successful, long-lasting company.

Still, have questions? Please feel free to share them in the comment section below. We are here to help you! Have a great day ahead!

Frequently Asked Questions (FAQs)

1. How do I make sure no one is currently using my business name?

You require a different business name and no one else in your state is using it. Using the Business Name Search Tool to look up your name will be the quickest approach to determine whether it is already in use.

2. How many words should a business name have?

Branding specialists advise keeping your company name short. This keeps it memorable and catchy. Strive to keep company names under two words or with a maximum of three or four characters.

3. Are Short brand names better?

Longer names are more descriptive, make it simpler to register trademarks and find URLs for them, and are typically more recognizable.

4. Do business names have to be unique?

Websites that list the names of LLCs, corporations, and limited partnerships. When you file the documents to formally establish your business structure, your business must have a distinctive name.

5. Does the name of your company matter?

Your company name can truly make or kill a company because it is so important to the development and idea of a brand. It’s incredible how important a name can be. It can fully make or break a business because it has a significant impact on the development and perception of a brand.

Sayani Chakraborty

Sayani Chakraborty

Experienced Software Test Analyst who has a comprehensive understanding of all of the tools available for software testing and analysis. Results-oriented quality assurance tester in a fast-paced SaaS startup with quick application development life cycles. Responsible for collecting test data on new software and worked closely with engineers using advanced technologies to integrate testing as a part of the development process. Performed integration testing, System Testing, End-to-End, and Regression testing and supported developers in resolving problems by completing additional tests. Skilled at functionality testing, quality, front-end testing, and implementing test plans, test cases, and test processes. Have Interest In Data Execution, Test Reporting, and Continuous Development Of Testing Skills.

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