One of the most important decisions that we must make when creating a company or business is the name that we are going to give it.
The name we choose for our company will be part of its image, so it could be a determining factor in its success or failure.
An attractive name that highlights what differentiates us from other competitors, could make us the best positioned company in the minds of consumers; while a name difficult to pronounce that does not say anything about our company, could quickly make us fall into oblivion.
Taking into account also that nowadays most of good names have already been registered, and that once we decide on one it will be very difficult to change it, choosing the name of our company is a decision that we must meditate very well.
In this article we tell you how to choose the right name for your company or business step by step; But before, in case you still don’t have it clear, we tell you what the name of a company is and how it differs from the brand or commercial name.
The name of a company could be a determining factor in the success or failure of it.
In this article you will find:
- What is the name of a company?
- How to choose the name of a company?
- Considerations for choosing a company name
- Final notes
What is the name of a company?
The name of a company or company name is the name assigned to it in order to identify it and distinguish it from other companies that exist in the market.
A company uses its name when doing its legal and administrative procedures with government entities and banks, and includes it in its legal and commercial documents such as contracts and payment vouchers.
Despite the fact that in some companies they are the same, the name of a company is not the same as the brand or trade name of a company.
The name of a company is the name assigned to it to identify it, generally before government entities, banks and suppliers, and to distinguish it from other competing companies; while the brand or trade name of a company is the name assigned to a company’s product to identify it to consumers, and distinguish it from other competing products.
The name of a company is registered in the public registers at the time of being legally constituted ; while a company’s trademark is registered at the trademark and patent office, or the distinctive signs office.
Also, in order to produce or market its products without further restrictions, a company is required to register its name, but is not required to register its brand or brands.
How to choose the name of a company?
Some people often recommend hiring a specialized company when choosing a company name; But the truth is that choosing a good name for a company, no matter how big it is, is something that anyone with a little creativity can do.
Here is a guide that will help you choose the right name for your company or business:
1. Identify words related to your company
To search for a name for your company, first identify two or more words (either words in Spanish or in a foreign language, or even made-up words that come from real words) that are related to it, and that you would like to include in your Name.
To identify these words you could ask yourself the following questions:
- What is it or what is your company about?
- What does it offer?
- What can be found in this one?
- What can you expect from this one?
- What sets it apart from other competing companies?
- What would you like to highlight about this one?
- What are consumers looking for the most or would you like them to look for in this one?
For example, if you are going to create a tourism agency, the name could be made up of the word «tours»; And if you add to this that your agency is located in Peru or, in any case, that the tours are carried out there, you could name it “Peru Tours”.
The same if you are going to create a taxi company and you want to highlight the security of your services (“Taxi Seguro”), a brick factory and you want to highlight the durability of these (“Ladrillos Fortaleza”), a store with a wide variety of baby items (“Mundo Baby”), or a travel agency with destinations in different parts of the world (“Global Travel”).
A common practice is to use the name of the geographical place where the company is located (for example, “Muebles Madrid”), although in case of doing it for the name of your company, you should bear in mind that if in the future you decide to expand to other markets, it may no longer be a convenient name.
Another common practice is to use the name and / or surname of the owner of the company (for example, “Confecciones Lucía”), or any other name and / or surname, although in case of doing it for the name of your company, you must make sure that the name and / or surname have a certain affinity with the idea or the concept of it.
2. Make a list of names
Once you have identified two or more words related to your company that you would like to include in your name, make a list with several names for your company that include these words, on a sheet of paper or in an editor or word processor in your computer.
When writing names for your business, in addition to making sure they include the words you’ve previously identified, make sure they’re attractive, short, and easy to pronounce.
To get ideas for these names you could take as reference or inspiration the names of your competitors, or the names of companies that are the same type as your company even when they go to other markets, in the yellow pages or in company directories In Internet.
Another alternative you have is to make a brainstorming or brainstorming with your partners, employees, family and / or friends, where you ask them that you propose ideas, and then to help you evaluate the proposed names, and discard those do not come to the point, until you are left with a small list of good alternatives.
3. Choose a name and record it
Once you have a list with a manageable number of good names, discard those that resemble those of your competition and that are already registered, and the rest put them to the test by asking your partners, workers, family and / or friends what they think about these, and what is the first thing that comes to mind when they read or listen to them.
And then, to choose the name of your company, in addition to the opinions you have collected, take into account your personal tastes and the marketing implications that it may have, listen to your intuition, and choose the name that best represents the idea. or the concept of your company.
Once you have chosen the name of your company, register it in the public records when you legally establish your company so that you are the only one who can use it, and also register the domain for your website, even if you still do not plan to create your page. web , before another company or person registers it.
Considerations for choosing a company name
Whether you use the method we have seen previously or any other, when choosing the name of your company, it is recommended that you take into account the following considerations:
The name you choose for your company will be something that will accompany you for the entire duration of this company, so it is recommended that you choose a name that is to your liking and with which you feel a certain affinity.
You should choose an attractive name that generates a positive image, also taking into account, especially if you have plans to venture into foreign markets, that do not have a negative connotation or mean something wrong in other languages or cultures.
It is recommended that the name not only be related to the company, but also report on it; for example, to communicate to the consumer the idea or concept of the company and, if possible, what differentiates it from other competing companies or what it stands out for.
An important requirement when choosing a company name is that it is easy to pronounce. Otherwise consumers will avoid pronouncing it and, therefore, communicating it to other consumers, in addition to the fact that it will be very difficult for them to remember it.
Unless you do not have growth plans for your company, you must ensure that the name you have in mind for this is not already registered by other companies or people, and thus avoid future legal claims that could not only make you lose money, but also name.
That does not refer to something very specific
For example, if you use the name of your locality, you should ask yourself what would happen if you later decide to expand to other markets. The same if you use the name of the type of product you sell and later decide to diversify your products.
Internet domain available
Nowadays it is essential that your company has a presence on the Internet, and at least has a web page , so if there is no domain available for the name you have in mind, it may be convenient to search for another name.
For example, if you have considered naming your company «Perú Viajes», but the domains www.peruviajes.com, www.peruviajes.com.pe, www.peruviajes.pe and other similar ones are already registered, it may be advisable to look for another name.
As we mentioned earlier, choosing the name of a company is something that anyone with a little creativity can do; however, if you find it difficult to find the ideal name for your company, you could choose to resort to companies specialized in the subject.
These companies can not only help you with the choice of your company name, but also with the choice and development of your brand , your logo , your slogan , its colors and its corporate identity ; in addition to having the necessary experience to deal with legal issues.
The disadvantage of hiring the services of these companies could be the high cost that they usually have; But considering the importance of the name for a company, and the legal problems you could have if you choose a name that already belongs to another company or person, it could be a good investment.