During a business session with a client, I found that one of his biggest issues was choosing the right name for his company. According to him, he has been pondering on the best possible name for his company for six months. And since he hasn’t gotten a name that will fully represent his company really well, he wanted me to choose one for him.
As an entrepreneur, you would find that choosing the right company name is often one of the most difficult things to do during start up. After refining your business ideas and passing through rigorous business start – up tests, your brand name is what is essential to put you in the public face. And this must be done with utmost care and precision because it is one of the things that your prospective customers will consciously or unconsciously consider before doing business with you.
But while choosing a company name is very important, few entrepreneurs really pay attention to it. Some think their high level of competency is what is more important, and what customers always consider. But before competency, there is brand perception. Your company name must be able to sell a high level of trust and chic to your customers before they would be comfortable with doing business with you.
This is true because a report from the Edelman Trust Barometer shows that 80% of customers said that they trusted to buy a particular product or service from a company because they trusted the company behind it. 63% said that they refused to buy a product or service from a company because they distrusted the company. And almost all the respondent said they will never recommend a company to a friend or colleague if they distrusted them.
These three things must be considered to reinforce trust while choosing a company name.
One of the biggest things to consider before choosing a company name is stickability. Customers respond to your business on an emotional level, therefore your company name must be able to stick to their minds in the first few seconds of hearing it; it must be able to hold the attention of your audience. It must also be easy to pronounce.
In today’s fast paced business world, attention is one of the scarcest resources. The human mind only retains things that are very important and easy to remember. As a smart entrepreneur, you must think about this while choosing a name. Your customers must not go through a high mental memory recall process just to remember your company name. Trust me, they will forget about you when your name is difficult to recall.
To avoid this problem, simply choose a name that is easy to stick in your customer’s mind.
A lot of people choose business names based on their immediate surroundings and realities. While this is often good, it is not always great. Your company name should not only satisfy your local audience; it must also satisfy your future international audience. Don’t think provincial; think cosmopolitan.
Consider these two Companies: Emeka & Sons Nigeria Limited and Endora Resources Limited. Now imagine that you have been given the chance to do business with either of them. Even though they both have the same competency and exposure, I bet you would choose to do business with the latter.
The point is that your business name must accommodate everyone, and it must be culturally diverse enough for people to make a connection. You don’t want to create a company that is tribalistic and provincial by name.
- Industry Relevance
Your company name must also be relevant in your industry. It’s not great to choose a company name that is not fit and relevant to the industry you want to play in.
When choosing a name for our website – Ensights.org, we came up with different names that sounded cool but weren’t relevant to our area of focus. Because we needed something that could satisfy business consultants and modern entrepreneurs, and also sell our unique proposition, we chose Ensights, which simply means Entrepreneurial Insights. The name has been a big hit because it satisfied the three fundamental requirements.
As a modern entrepreneur, don’t just choose a company name because it sounds cool to the ears. Don’t just choose a name because you like it. Choose a name because it is relevant to your industry so that your audience can easily associate with it.
Finally, your company name must not begin with your name unless it is an industry standard.
When next you want to choose a company name, make sure it simply satisfies these three areas. Don’t choose a name that will keep your customers guessing what you are really about.