Mistake 1: Choosing a name that is too close to an existing brand
It is important to remember that your product and service is what sells your business, not just the particular name. The first and one of the most over looked business name mistakes to avoid is making sure you have a different name than your competitors. Standing out looks different now than it did decades ago when many chose a business name based on what already was in place in the white pages/phonebook by using the same name as others and adding a few letters or twists to existing names just to get to the top. Research is good but also try using a thesaurus to find other descriptive words that may dance around the obvious word everyone else may be using for their brand. So try to build on what words describe who you are as a company and go from there so that your brand will define who you are in bold, clear letters.
Mistake 2: Choosing a generic name
Remember who you are as a company and as a human. Identity can be found in a name. Think of how many people you know that may have the same name as you or others. It can get frustrating and redundant when trying to place the name with the face. So the same holds true when it comes to your company name. Having a name that you are proud to be the face of your business and that will allow you to stand out a bit from the rest can be the defining factor in how much you earn. A business name can be unique and tailored to who you authentically are as a whole thus still attract the audience/consumers that will make you money.
Mistake 3: Not considering how the name might be pronounced
We all have seen the video of the substitute calling out names on the class role and mispronouncing them and the reactions the students have and confusion it can cause. Sometimes a fancy name that is easily misread/said can make for hard google searches and brand building as it can be hard to spell and then not come up easily on text query or vocal commands. One large company that had a name with two pronunciations, targ(it) and tar(jeh), fortunately, were spelled exactly the same way so the signage was the same. When choosing a name make sure that it is easy to say, spell and read.
Mistake 4: Thinking your company is on the cutting edge when giving it a new, trendy name; hipster names often have limited shelf life.
A name is something that you want to stick to as it can be permanent so it is a good idea to have one you like and that will last. A name that you do not have to change numerous times on paper, social media, and packaging, excetra due to it being out of season. So you can always have nicknames or taglines that can change as your business grows or shifts, however make sure that the actual legal name of your business has longevity and is versatile for years to come. Have a marathon approach when naming your business as you are not wanting it to shut down after a sprint.
Mistake 5: Focusing on what you like best instead of what’s right for business
Make sure to pick your business name for the right reason, not just because it was cute. It is a statement that will follow your company everywhere so focus on what makes sense and is in line with what you do and stand for not just what you may like at the moment and think others will too. A lot of expense goes along with a business name not just on the front end, or while building it, but also keeping the name. You will be hearing it, as will everyone else, for as long as you have your business. Changing it on the back end if you have to redo everything because the name wears off after a while can be expensive. Especially, if it really doesn’t define who your company is and what you do as it can distract the eye of the consumers/clients you want elsewhere as the name may not be one that is right for the business they may desire to suit their needs thus a decline or loss of sales.
Mistake 6: Not considering company strategy and goals when choosing a name
Your business will be built off your company name. So you want to make sure that you can put a lot of scaffolding below it to support it otherwise you end up with a business built on mud.