Given that businesses have all kinds of names, you can be forgiven for thinking that choosing a name for your business is no big deal. However, getting the company’s name right is critical because, in addition to creating an all-important first impression on potential customers, it is also a platform for all branding activities. Some of the top mistakes you need to avoid when selecting a name for your company:

The Name Is Hard To Say, Hear or Spell 

The name must be easy to say because hard-to-pronounce names are difficult to remember and say. Moreover, when you make the name easy to spell, people will find it easier to feed it into the search engine or the browser address bar. Beware of using letters that sound similar such as s and f, m and n, b and d, etc. Many branding experts recommend 3 letter company names for the best impact and memorability.

Making the Name Too Descriptive 

If you make the name too descriptive or specific, it can help your potential customers know what the business does, but on the other hand, it may restrict you from expanding your business activities. A rebranding exercise can be expensive and tiresome and can erode goodwill and brand reputation, not to speak of confused customers.

The Name Is Too Generic 

Even though generic domain names can be an asset in the online world, choosing a generic name for your company can mean that customers will not be able to tell what the company does. For example, a company named “Amazing Technologies” could be making any product. When customers cannot make out what the company does from its name, they are likely to ignore it for another company they can identify with better. A report in Entrepreneur suggests not using words that are too plain since they will not stand out.

Not Researching Competitor Names

The name of your company is the ultimate brand, and customers will only get confused if you name your company like any of your competitors. You will find it difficult to create an identity of your own that provides a sharp differentiation in the minds of the target audience. Ideally, the business name you choose should be creative and establish a unique identity while making it clear what the company does.

Not Conducting a Trademark Search 

It can be disastrous to have spent considerable time and effort to choose a name for your company and make it well-known only for a competitor with the same name to slap a legal notice on you for trademark infringement. If some other company can prove it has been using the name, even if it has not registered it as a trademark, you will be forced to drop it and adopt a new name and may also have to pay a steep penalty. Ideally, you should conduct a professional trademark search and Google search to establish that the name is not already in use.

Conclusion 

Thinking of a name for your company should not be done in haste and without following an intensive cerebral process. It is, after all, the most valuable asset the company has.