What’s in a name? Why naming a business is so important
The decision over what to name a business is of vital importance in the long-run as it could play a major role in whether or not a firm is successful.
Names can carry a number of different connotations and some names will perform far better than others, especially when it comes to advertising and marketing potential.
A name should reflect a company and the business space that it finds itself in, but it should not be difficult to pronounce or spell.
In the case of the latter, this can be a nightmare on internet search engines, especially if other companies have names which are similar.
At the same time the name needs to provide enough spark to stand out from the pack when it comes to recruiting staff.
Attracting staff, finance and sales
After all, those hunting for a job are far more likely to be impressed by something that catches their eye rather than a name that blends innately into the background.
Having a name that doesn’t suit a business can lead to a number of issues, but those surrounding finances can be the most difficult to overcome.
If a brand or name is weak, then it can be difficult to sell products associated to it and that often means losses in the long-run.
A lack of sales can also mean that the company doesn’t appeal to potential investors and those financing projects, increasing the likelihood of cash-flow problems.
If left unchecked, these issues can ultimately prove fatal for a company, leading to company administration, receivership or corporate insolvency.
Thought and consideration required
Creating a business name is no easy task, and one which certainly requires a lot of consideration.
Rebranding can also prove to be a difficult procedure if a large number of suppliers and customers are involved, meaning it should be avoided wherever possible.
However, in instances of mergers and acquisitions, these changes are sometimes inevitable.
This becomes an even larger issue where takeovers are concerned, as a decision is required as to whether a complete name change will be required.
Potentially this could damage ties with existing contacts and customers, meaning plenty of consideration is needed for both sides of the argument prior to any deal being completed.
By Phil Smith