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HOW TO

CHOOSE A

SUCCESSFUL

BUSINESS
All rights reserved. Smartylogo.com 2011

NAME FOR YOUR

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How to Choose a Successful Name for Your Business

OW TO H OSE A CHO SFUL CCES SU AME N YOUR FOR INESS BUS s for a
Ingredient ful Company Name Success

Editeb by Smartylogo. How to choose a successful name for your business. Ionel Paun 2011 www.smartylogo.com

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ents Cont
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Introduction Memorable and Resonant Names The Elements Importance of Name Branding Product Differentiation Good Name = High Sales How to Name Your Business Tips and Tricks Types of Names Semi-Descriptive Abstract Names of People or Locations Initials Conclusion 6 8 10 14 16 19 22 25 28 32 33 33 33 34 35

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Naming your business may seem like a trivial affair to you. Even the Bard would concur with you on this. It doesnt matter what an entity or item is called. That wouldnt have any effect on its features and characteristics. Yet, there has been much debated and discussed about the importance of the name of a business. In fact, it is said that naming your business is one of the most important aspects in starting off as an entrepreneur. In this age of brand names, your business name gives your business a separate and distinct identity. It is a representation of the image of your business which you wish to put across to your customers. Hence, the name you choose for your business can go a long way in determining whether it is successful or not. In this book, we will look at various aspects of naming a business and talk about how you can choose a successful name for your business.

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orable Mem sonant Re ames N

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There is an intrinsic quality in names which makes them appealing or repulsive. Having a memorable and resonant name ensures that it is catchy and people will be attracted towards it. Nowadays, people pay attention to names which are different and stand out from the crowd. Think for yourself would you be attracted to a business with an old-fashioned name like Brown & Sons Product Ownership Services or would you choose All My Stuff Inc!. Though the former seems more reliable because it is a family business, the latter is relevant and to the point, showing exactly what the business does. This does not mean that you just think of something wacky and name your business. You need to exercise a degree of awareness when choosing a name so that you dont put off your target audience before they have become your customers. A memorable and resonant name will go a long way in catching peoples attention. This is important for businesses which dont have a huge marketing budget. So, what exactly makes a name memorable and resonant?
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No, we are not going to talk about Earth, Fire, Wind and Water. Rather, we will look at three identifiable elements which make a business name memorable and resonant.

Identification
Your business needs to have a name which can be easily identifiable as a separate entity from your competitors. Standing out from the crowd is very important, but in a positive way. This means that a business name should be such that your business does not get confused with your rivals. If all the firms in an industry name their businesses according to their locations, they wont be able to achieve much identification. Apart from identification, congruency is also important. Your business name has to be in line with the type of products you are offering. Congruency is extremely important for establishing your own brand identity. Choosing an identifiable business name would lend your business credibility and a worthy image in the eyes of your customers. This is the
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first step on your way to success. Make sure that you dont choose a name which is common or traditional.

Uniqueness
To establish a brand identity, you need to plan it from square one. The product you offer wont be unique or something that people have never seen or heard of. You would have some form of competition. When it comes to branding, there are certain stereotypes which are often followed. Business owners commonly belong to male gender and dont like to choose names which are feminine in nature. In truth, such a name would give you a niche in the market and make your business identifiable. Through the name of your business, you can establish yourself as different from the rest. Apart from the name, your tag line should be relevant and not make tall promises or boast. Choosing a unique name ensures that you dont get mixed up with your business rivals and you dont face trademark issues. Perhaps the most important part of choosing a name for your busi12
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ness is making sure that you choose a unique name that hasnt already been taken. And more importantly, it must be copyrighted.

Audience
Finally, your target audience should be the determinant of what name your give to your business. If you are targeting the middle age group, dont choose a name that is youthful or more geared towards a teenage audience. Businesses which are able to read the target audiences expectations are able to choose the perfect name. Then it doesnt matter if it sounds corny to an outsider because you have achieved your objective. The name Geek Squad appeals to a whole different generation. Your Computer Experts is a more traditional name but is germane to all generations. Therefore, you need to choose a name which is in keeping with your target audience. These are the three key elements which make a business name memorable and resonant. You need to incorporate all of these elements when you are selecting a name for your business.

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rtance Impo Name of hapter C

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This is the era of brand names. Nike, Adidas and McDonalds, just to name a few, are commonly known words around the globe. When their owners were naming them, they wouldnt have fathomed that the name alone would be worth billions of dollars. Get my point? A name is important because it makes you recognizable to the people you are trying to sell your products to. Your business name lends an identity to your business which is crucial to survive in the face of cutthroat competition. The dynamics of business competition have taken a quantum shift over the past few decades. Branding has become a prerequisite of being successful. If people dont know you, they wont buy your products.

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Just think about it: your business lasts for many, many years. It grows and expands as you have invested a lot of time and money into it. It would have grown in value as well. The name also holds intrinsic value for the business. You can get a valuation for your business name as well. How much do you suppose is Star Wars worth? For a second, suppose Harley Davidson changes its name to Johns Motorbikes, would it have the same value? No! Would people be as attracted to it as they are now? No! This is because Harley Davidson has been in operation for so long and spent truckloads of money building up an image according to the brand name. Changing it would have a drastic negative effect on the revenue and popularity of the business. If you go and buy a franchise of a well known business, lets say KFC or McDonalds, you would pay more money than you would have to start up a new fast food joint. This is because those names guarantee a minimum amount of money you would be able to make from being their franchisee.

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Branding gives you a unique identity in the market. Even if you are offering the same product that a hundred other businesses are, your brand name will give you an edge over them. Furthermore, if you are able to expand your business all over the world, your brand name alone would be worth billions of dollars.

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Go to the market to buy something and you would see the same product being offered by a number of different businesses. It does make you wonder what differentiates these products. For example, how is Pepsi different from Coca Cola? The difference in taste is negligible but its the name that stands out for both of them. There are some people who prefer Pepsi while some prefer Coke. What caused them to take sides? There are various other colas available in the market but they are only differentiated by their brand names. Else, you can drink anyone you want and you would hardly feel any variation. Remember that once people start liking your brand, more likely than not chances are that they will remain loyal to it. You have the Pepsi vs. Coca Cola example to refer. Product differentiation can be done through choosing a name for your business that reflects what you are trying to sell. This is why the importance of a business name cannot be ignored. Yet, owners dont even want to think 10 minutes about what they are going to name their business.
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Though it is true that capital, location, staff and other things are essential for the working of a business, its the name that will help you start out on the right note.

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Name Good h Sales = Hig

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As has been mentioned before, a good business name can effectively market your business. This is crucial for businesses which dont have a huge budget for marketing and advertising. Not only will it help in marketing your business but it will trigger high sales. How? Lets take an example here. A business which has an effective name like Cheap Liquor defines exactly what it does and what people can expect from it. It sounds better and more appealing than other liquor stores. Imagine someone naming a business after his pet poodle. That is cute but wont be effective! Some firms can get away with awkward sounding names because they have the money to promote it. Take the example of Reebok or Nike, names which dont make any sense when we talk about their products. Yet, they are household names known all over the world. However, 90% of the businesses dont have too much money to spend on advertising and promotion in order to generate recognition and sales. This is where they can use the name of their business to help them get people to buy
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their products and boost sales revenue. Another thing about well-known business names is that they have a feel-good factor to them. People find them reliable and trustworthy. You dont expect a Nike product to be substandard. Once your business is established, the name will act as a symbol of what you offer to the public. Remember that your business name should reflect consumer benefit rather than advertising what you are selling. It is the effect your name has on people which will ultimately lead to high sales. Think of McDonalds and a restaurant pops into your head. Similarly, your business aim should be to bring an image into the peoples minds about your business. Still stumped? Follow the tips and tricks for choosing a business name which are mentioned in the next section.

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Now we come to the business end of things. You might be tempted to ignore all the other sections and just read through this. Be warned, the information contained in those sections is a gold mine and will help you to improve your business significantly. Coming back to the issue of naming your business, there are common trends which owners have followed for many years now. Though they are used by entrepreneurs around the world, you should avoid using them.

1. Name
The owner uses his own name or the family name as his business name. This has been a practice followed for centuries now. The brand name would be based on you rather than your business. You will also face problems when you want to sell off your business.

2. Geography
Only use location names if you are going to operate your business strictly there. Otherwise, use any other name.

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3. Abbreviations
You might misinterpret this point. Dont use an abbreviation as the name of your business. Now you can argue that KFC is an abbreviation. KFC was started as Kentucky Fried Chicken and the abbreviation became popular later on. Choose a name and then abbreviate it rather than the other way round.

4. Hyphens
Avoid using hyphens in your business name because it becomes difficult to remember it that way. Johnson & Johnson looks much better than Johnson-Johnson.

5. Suffix
Dont add Inc, enterprise or any other suffix to your business name. This trend is obsolete and you shouldnt use it in this day and age. Now that we have looked at common business naming trends you should avoid, you would be wondering that how can you name your business otherwise.

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Tips Tricks

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Here are surefire tips and tricks which you can follow to create a business name that is sure to work for you.

1. Spelling
The most basic but often ignored part of naming a business is spelling. Your business name needs to be memorable and people have difficulty remembering anything spelled awkwardly. Looking up such names in the phone book or on the internet would be a chore. Bottomline: choose a different and unique name but it should spell easy. A name like Saskatchewans Best Meat Pies can be hard to find. Saskatchewan is a city in Canada.

2. Positivity
Your business name should reflect positivity rather than having a negative connotation to it. Using positive sounding words in your business name creates a favorable image in the minds of your target audience. This is a great way to get more sales through your business name. E.g. Blood Red Ketchup would be a negative way to describe your business. The audience you want to attract would be apprehensive because your business name has a negative connotation.
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3. Image
Our mind has been tuned to make up images when we hear anything. This applies to choosing a name for your business as well. Your business name should be such that it brings a certain visual into the mind of the person reading it or listening to it. What will Crystalwellyn bring to mind? Nothing! Why, because it doesnt make any sense. It is name made up by combining the names of two people, which is a common practice.

4. Length
This is also related to making the name of your business easy to remember for people. Short names are easier to remember than the longer ones. Shorter names work well with advertising tools such as ads and business cards. In this modern age, making a presence on the internet is also crucial. A short business name can be easily converted into a domain name as well.

5. Represent
Your business name has to represent what you are offering to the customer. Customer is the king and you should make sure that you impart as much information through your business name as possible. Dont go wacky and de30
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duct what you do from the business name. For example, if you have a hair salon, include the word salon or hair design in your title, otherwise your target audience wont be able to find you.

6. Logo
When you are thinking about your business name, keep in mind that it will become the logo of your business. Hence, choose a name that will look good as a symbol of representation. These are killer tips and tricks which will help you to choose a successful name for your business.

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Types Names of hapter C

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The types of names owners give to their businesses can be categorized under four categories, namely:

Semi-Descriptive
As suggested by the title itself, a semi-descriptive business name gives a hint to the people about what the company does. This type of name is ideally suited to small-sized businesses. Examples of such names are Dunkin Donuts and Swatch.

Abstract
Abstract business names are unrelated to the business but through marketing and promotion, people are made aware of them. Nike is the foremost example of this. Abstract business names are suited to businesses which have enough money for huge advertising and marketing campaigns.

Names of People or Locations


These types of names add a personal touch to the business. Family businesses which have been running for generations are common examples of this. More often than not, people who do something creative use their own name as
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the name of their business. Examples include Armani, Versace, and Louis Vuitton.

Initials
Initials are the most difficult names to interpret for the people because they dont give any clue as to what kind of business is being done. Though there are many businesses which have been successful, using initials is a practice adopted by a minute portion of the total businesses around the world. Examples are IBM and LG.

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In this book, we have looked at the various aspects related to names of businesses. From importance of the name for a business to types of names, everything that you need to know about business names has been covered. For your benefit, a few tips and tricks to choose a successful name for your business have been included. The aim of this book is to enlighten entrepreneurs about the importance that the name of a business holds. It has been an overlooked part of starting off a business yet very important. Remember, the name of your business can determine whether it will be successful or not. Naming a business is a huge part of setting up your business and you should give it the importance it deserves.

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How to Choose a Successful Name for Your Business

OW TO H OSE A CHO SFUL CCES SU NAME YOUR FOR INESS BUS s for a
Ingredient e essful Company Nam Succ
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