Choosing a Company Name

Choosing a Company Name

Choosing a Company Name

When forming a limited company the name of the company can be an important decision. Some people may choose the first name that they think of and others may select a ready made company for speed or because they like a particular name. However, many businesses may prefer to select a company name that either clearly distinguishes itself from its competitors or contains something unique or personal. Company names can be chosen for different reasons.

One of the most common ways of selecting a company name is to use something personal. A quick look through your local newspaper will probably introduce you to many personalised business names. Johnson Consulting Limited, T Smith & Son Limited, Stephens & Barley Limited are some fictional examples of what may be found. This may instantly make a company recognisable locally, it can be deemed as more personal by its customers, and often works well within geographical areas. However, it does little to tell new customers what your company does.

A popular choice for a small business is to choose a name that is ‘descriptive’. This tells prospective clients exactly what your company does. Examples of this may be to call your business The Window Company Limited, City IT Consultants Limited or The Advertising Agency Limited. Whilst this does serve to reinforce your primary business it offers little differentiation and may easily be adapted by competitors.

A less personal option is to use a company name that is ‘associative’. This type of company name helps to create an image or connection to your business activity. It is less direct than using a descriptive name but helps to position your company’s name within the market through peoples understanding of what words mean. For example a flick through the Yellow Pages will offer plenty of examples of this. A hairdresser called Classic Cuts or a printer called Selectaprint Limited are examples of what may be found. These names offer some differentiation but may not ultimately set your company aside from its competitors.

An alternative is to choose a company name that is ‘freestanding’. These names are completely abstract and not related to the companies business activities. A fictional example may be to call your catering company Zedoc Limited. There are many popular brand names that illustrate this point. Consider, Kodak, Gillette, or Mars, these names will probably be instantly recognisable to you and conjure up a particular product or business. This is a good way of setting your company aside from the competition but it is important to consider the market that you operate in. Will your prospective clients know what your business is offering?

Choosing a company name may be a simple process, but it is not uncommon for people to deliberate over names for quite some time. Whilst company names can, and often are, changed during the life of the company most people like to choose a name that they like from the outset. Therefore consider your market, how much you want to differentiate from your competitors and what your company name should say about your organisation. Once the decision is made focus on the important business of making your company a success.

Author Bio
Michael Harris is a university graduate who has worked within the company formation and business advice industry for many years. Simple Formations is part of the SFS Group of Companies providing Company Formation the same day with your own company name.

Article Source: http://www.ArticleGeek.com – Free Website Content

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About Granger Whitelaw

Granger Whitelaw founded the Rocket Racing League along with partner, Peter Diamandis in 2005. See more information at http://www.grangerwhitelaw.com/blog and http://grangerwhitelaw.brandyourself.com View all posts by Granger Whitelaw

12 responses to “Choosing a Company Name

  • Rossi

    Choosing a company name is like choosing a name for your facebook account. In choosing a name for your business, don’t choose a name that sounds like or is spelled like another brand name. If and when the owner of the original brand name becomes aware of your business name, you’ll have a lot of aggravation to deal with. At a minimum, you might be served with a ceaseand-desist letter warning you to stop using the name, or else pay a fee to license the name from the owner. At worst, you would be forced to go to court and spend money to defend the name. So, choose a unique name for your business.

  • Sushi

    That is really true, name is one of the things that must be considered first before really establishing the company because the name of a company affects its functions and not just functions but to some things also. I think every companies name must be related to its companie function or products.

  • Jurick

    This is really interesting, some may not notice that choosing a name of the company is really a problem, but you provided this blog on how to answer the problem.This will enlighten those entrepreneur minded people and will teach them how to choose a company name. And by that, they will not consider it a problem anymore.

  • Anne Gay

    Thanks for sharing an information about Michael Harris and so he is a university graduate who has worked within the company formation and business advice industry for many years. He did a great job and this one is simple yet quite educational for aspiring businessmen. Someday I will put up a business and I will surely select and choose a good name for the name of my business company or brand that will really make a great hit into business industry.

  • Win

    Choosing a company name is a critical thing and it should be planned and studied very carefully and it is one of the factor that people will go to your company and also I agree that choosing a company name may be a simple process, but it is not uncommon for people to deliberate over names for quite some time. So now for those people who are establishing one, make a good company name and be careful.

  • Robert Crue

    Choosing a company name is just like choosing your name also, you will be using the name for years and of course you will choose a name that is comfortable to you and that you are comfortable to be called on that name. For example you are called as Robert and then that is your name and you like calling by that name then of course you will not be into actions that might led to unnecessary. I found some tips here on your article on how to choose name and some ideas on selecting and choosing name and I am glad that I have read it.

  • Matte Bourn

    I will take this one as a good advice “An alternative is to choose a company name that is ‘freestanding’. These names are completely abstract and not related to the companies business activities”, because we know that selecting or choosing a name is very critical and we should do it in a safe and planned way. I am so clumsy and I really do things sometimes that is good in my mind but when I do it as what I have planned it always makes a disaster.

  • Gunmor

    I am puzzled with this but I think I have a slight grip of the idea behind this “An alternative is to choose a company name that is ‘freestanding’. These names are completely abstract and not related to the companies business activities”, I think there is something behind this idea and though it might be weird having such kind this logic I still have believe and trust with this.

  • Marl

    Naming your business can be a stressful process, you want to choose a name that will last and, if possible, will embody both your values and your company’s distinguishing characteristics. But screening long list of names with a focus group composed of friends and family can return mixed results.

  • Crazon

    Only few have no care in choosing their names over their business, they want to use a name that they like but not considering if it will give benefit to their business. Well, it is good to pick and choose name for your business that you like but it much better if you will use name that might be good for others and may others find it attractive. I am not so expert with this kind of aspect in business but surely in my opinion, name will give a big impact in your business especially when starting it.

  • Rudy

    I am also one of the people who are experiencing this one “Choosing a company name may be a simple process, but it is not uncommon for people to deliberate over names for quite some time”, it is hard for me to choose a name for a company since I know the weight and how important a name of a company is. It is good that you have mentioned and discussed here the types of techniques and some of good advice and information in choosing a name for a company.

  • Samir

    No doubt you’ll spend hours brainstorming for a business name that represents your products or services — a name that’s both marketable and infused with personality. To help the creative process along, you might surf the Web, browse the dictionary, read trade magazines, and bounce ideas off of friends and colleagues. Naming your business can be a stressful process. You want to choose a name that will last and, if possible, will embody both your values and your company’s distinguishing characteristics.

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