How to Choose a Business Name

by Ernesto Luna, FCPS ACE Adult ESOL teacher

Your business name is more important than you think. From there you will create an identity for your business by creating a logo, advertisement material, etc. Consumers like to identify themselves with a business name. They are more likely to use a product or service if they can relate to the name or feel an association to it. 

Before I can give you some tips on how to choose a good business name, I first need to explain what target market is.

Target market is the potential group of people that could buy your product. A target market is usually divided by gender, age, income level, location, and other demographic factors. For example, if I own a coffee shop, my target market would be: men and women between the ages of 16 and 60 years old, who have disposable income and live or work in the area where my
coffee shop is located.

Now that the idea of target market is clear, let’s see some tips on how to choose a good name for your business. 

1.     The first thing you need to keep in mind is that consumers like a recognizable and easy to remember name for a business. They also like names that are easy to spell and pronounce.

 

2.   It is easier to identify the services your business offers if what you do is part of your business name. For example: “The Yardman Landscape Services.”

 

3.     Try to create a unique name. Don’t make it too similar to other existing businesses or the competition. This could confuse your target market.

 

4.     Using the area in which you operate as part of your business can help your target market to find your business in an internet search. For example: If your major area of operation is Springfield, then you could name it something like “Springfield Plumbing & Electrical Services.”

 

5.     Don’t use your name as part of your business name. Many people do so, and it gets confusing. Not only could there be other businesses with your name out there, but also some names are difficult to remember. For example, if I name my business “Ernesto’s Plumbing,” People could get confused and think it’s called “Eduardo’s Plumbing,” or “Enrique’s Pluming.” In a case like this, if they can’t remember your business name, they won’t call you to hire your services or buy your products.

 

6.     Also consider your future business objectives. This means that you need to be careful about choosing a name that can’t grow with your business. For example, if you start a business for residential painting, but you want to expand it in the future to all kinds of handyman services, then don’t name your business “AJ painting” you could name it “AJ Home services” that way, you can expand your business without changing its name.

 

7.     Something very important to consider is that your business name isn’t about you or what you think about naming your business. It is about reaching your target market. I have heard many small business owners saying that it is their business, that they have built it with their effort, and therefore, they should be the ones deciding on the name. Although it is true that your business is your “baby,” you need to think like a business owner. Don’t let your personal feelings get in the way of your success.

 

8.     Finally, let your target market decide for you. Think of a few alternatives for naming your business. Then ask your target market to vote for their favorite (this could even be done using social media platforms like Facebook or Instagram). Use the name that gets the most votes. After all, that is the one that your future customers/clients identify themselves with.

If you want to register a business in the state of Virginia, you can use this online name check availability tool https://cis.scc.virginia.gov/Account/NameCheckAvailability to see if the names you have in mind are available. Also, it is always good to check if your state has any limitations or restrictions when it comes to naming a business. Always follow your state's naming guidelines. 

Would you like to learn more about starting, owning, and marketing your own business? Take Mr. Luna's English for Business and Marketing class during the winter term! The class will be offered on Tuesday and Thursday evenings from 7:00-9:30pm at Plum Center. The class costs $99.