Choosing a Business Name: 9 Mistakes to Avoid

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Choosing a Business Name: 9 Mistakes to Avoid

Mistakes to Avoid When Naming Your Business

Your business name makes a huge difference in how you brand yourself. Get it right, and you’ll create a strong identity you can apply to your products and services. Get it wrong, and potential customers might forget it easily or choose not to buy from you.

So, what mistakes should you avoid when picking the right name for your business? 

We’re glad you asked. We’re here to answer your questions and share the most common business name mistakes. Let’s get into it.

1. Avoid Long Business Names 

Choosing a business name with the right length can mean the difference between being memorable and being forgotten. A long business name can lead to customers forgetting your name or being confused about what you provide. Plus, it's likely that those extra words won't create any additional clarity.

Consider how the name will look on a website, a URL, and any marketing materials as well. It's recommended that your business name is as short as possible.

2. Try Not to Use Purely Functional or Generic Business Names

While a name like “Appliance Repair Shop” or “Quality Picture Framing” may perfectly describe what you do, they lack personality and will be hard for people to remember.

Choose a name that distinguishes your business from the others and grabs the attention of the audience. If you want a breakthrough business, you cannot afford to have a mediocre name.

3. Avoid Short-Term Trends

Trends are always changing. Your business name should not be beholden to any trends. You want your business to have longevity, but a trend-inspired name is like stamping an expiration date on it. An evergreen name will ensure you stay relevant for the long term.

4. Stay Away From Complex Names

If your business name causes confusion or people mispronounce the name constantly, then the chances are that your business name isn’t a good one. To establish yourself in the market, you need to make sure to choose a name that conveys what your brand does and is easy to say and understand. Don’t use unusual or overly long words in your business name. Keep things simple and straightforward.

5. Don’t Tie Your Name to a Specific Location

A business name tied to your location will never help you to stand out from the competition. In addition, you may not want to mention your city in the name as that might imply it’s the only customer base you serve.

Plus, if you want to expand into other locations down the line, then choosing a location-specific name can limit your potential.

6. Refrain From Using Your Personal Name

A founder-based name may be problematic if your “personal brand” or name isn’t big enough to pull an audience. A customer shouldn’t need to look up your name in order to understand who you are and what you do. You want your business name to be understood immediately and without confusion or the need to use Google. Additionally, having a business named after the founder(s) can cause issues if they decide to leave.

7. Stay Away From Controversial Language

Never try to create more friction than necessary. Make sure that controversy is not the focal point of the business. While it’s ok to be a niche business, you don’t want to alienate or offend anyone that could cause conflict or bad press.

In addition, there are some words not allowed in business names. Check out our post on words to avoid when naming your business to learn more.

8. Don’t Drop Letters or Use Odd Spelling

Made-up or odd words often make a brand look silly. And people may have a hard time remembering it when you drop letters or use a spelling that they can't find in search results.

9. Try to Avoid Acronyms

Using acronyms is never a good idea. If people don’t know your business, how are they supposed to know the acronym? Go with a full name until your company gets big enough. Think along the lines of International Business Machines changing their name to IBM.

Why Does My Business Name Matter?

Your business name matters much more than you might think. Research tells us that:

Is My Business Name Available?

You can find out if the name you want for your business is taken by using our Business Name Search Tool. You'll need a unique business name that’s not used by anyone else in your state to form your new company. Simply enter your proposed business name, select the state you want to search and we’ll let you know if it’s available:

Is My Business Name Too Long?

Branding experts believe you should keep your business name short. This helps to keep it catchy and memorable. Try to avoid business names with more than two words or with more than three or four syllables in total.

What Are Some Business Name Best Practices?

Now we’ve explored what you should avoid, let’s turn things around and look at some great starting points for the perfect business name.

  • Research how your business name might be interpreted: Check to see if there are any specific meanings associated with your business name, especially if you’re serving customers who speak different languages.
  • Discover if other companies have names similar to yours: Even after you’ve completed a name search, it’s worth checking that other businesses don’t have names that are too similar. That can make it difficult to stand out from different organizations.
  • Check for the availability of URLs and social media handles: Websites and social media marketing are essential to modern businesses. You’ll want a website address and social media accounts that reflect your business name. Namecheckr, Namechk, and KnowEm can help with this.
  • Think about how your name will look on a logo or website: Business names lead to business branding. Consider how your name helps with the visual identity of your business.
  • Aim for clarity: Keep your business name short, clear, and concise. Don’t make consumers think too much about your name.
  • Choose a name that has room for growth: Choose a business name that is focused on the broader vision and does not limit or hinder your business growth.
  • Use a Business Name Generator Tool: A business name generator tool can be helpful if you find yourself stuck on finding a name. By entering a few keywords related to your business, this type of tool will provide you with a great way to think outside the box.

How Do I Come Up with a Catchy and Memorable Business Name?

To come up with a catchy business name, check out our guide. We’ve also put together a resource of 22 different tips for coming up with a name that will stand out, which you can read for even more tips.

Should I Test My Proposed Business Name?

You should test your proposed business name to ensure your audience understands and likes your potential name. Reach out to people in your target audience and gauge their reactions, perhaps through surveys or interviews. What does it make them think of? Does it accurately portray your company and its long-term goals? If not, it might be a good idea to go back to the drawing board.

Are There Any Other Searches I Need to Complete?

In addition to searching to see if your business name is in use, we recommend completing a trademark search. Otherwise, you might discover that your name is already registered or being used by another company, negating all the effort you’ve spent talking up your new business. To avoid any potential legal issues, do your homework upfront and secure your own trademark.

naming your business best practices

At Incfile, we’re always looking forward. We aim to provide business owners like you with the knowledge and tools you need to set yourself — and your business — up for success. 

With our extensive resources on your side, you’ll be better equipped to build toward sustainable growth from the very beginning.

Try Our Free Business Name Search Tool. Check the Availability of Your Business Name.

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