When people think about business or company names most of them think it should be an unusual name or brand. Usually, this is done using words in a foreign language, by combining two different words like Coca-Cola or using misspelled words.
The first thing to decide is how unusual the name should be. Unusualness has a broad spectrum. Form novel words to everyday words. Either end can work out but maybe the best option is somewhere in the middle.
Fighting for names
Keep in mind while at it that you’ll find competition for individual words to be used as business names. Some companies have the same name or even a similar name but this does not represent a problem for them.
Such is the case of Delta Faucet Co and Delta Air Lines. Both companies are leaders in their respective industries. For some Delta is a Greek letter and for others, it has mathematical background. People usually recognize it but don’t use it on a regular basis conversation.
The trick here is that the first company is in the Faucet manufacturing Industry and the second one is in the Airline business. So, people won’t be relating to them. This identical name gives both an exclusive identity. They don’t create any confusion for clients in the marketplace. There is even an insurance company called Delta Dental.
Similar names on the same marketplace can create confusion
When two companies are in the same industry and have a similar name, it can create the potential for confusion. In the ice-cream industry, which is highly competitive there are two brands Breyer’s and Dreyer’s. Can this create confusion? It certainly can happen while taking a phone order or a client speaking extremely fast or in a rush. Did they ask for Breyer’s or Dreyer’s? How certain can you be? This is a typical case where both businesses could use a rebrand.
How unusual the name of your business should be?
To have a first idea on how unusual your business name should be looking first at how much advertising your competitors actually do. This should provide a notion into name competitiveness in the industry. Wealth management usually advertises less than retail sales for example.
Think about what sector you are in and specifically what industry this should give you an idea into naming and branding
Second factor: Geography
Consider second what is your geographic footprint. Where are you going to operate? Is it a neighborhood, a village, or a town, or an urban metropolitan area?
What about state or national level? Are you planning going international?
Where you are placing your business is important. If your geographic footprint is small that means less competition and usually less need for an unusual name.
Is your business a local massage and spa center, a local hotel, or a local restaurant? On the contrary, if you chose to start a company that manufactures as well as sells supplements for health and wellness it is a bit different.
Third factor: Competition
In the health and wellbeing industry, these types of companies have countless television, stills, and online advertisement. This means a high level of competition.
If you sell the product through a website and to retailers your potential geographic footprint spans. It could reach even international level. With these two factors (consistent advertisement and large geographical footprint) you’ll need a competitive name. First to consider when choosing a unique name in this situation is are another company’s trademark and second is a competitive advantage over your competition and avoiding being placed with all the products people just buy once.
The opposite case could be a nonprofit. An organization to help children from an underprivileged background in your community to get into college. In all probability, they will be first-generation university students. Therefore, it is likely that they don’t have behavioral models and patterns to study from. The goal of the organization should be focused on creating tools for them to go through life, provide for orientation prior to enrollment at the colleges or universities.
Competition in your community won’t be high probably and your immediate neighborhood will be your starting geographic footprint. Your chosen name, in this case, does not need to be an unusual choice and maybe aided by a modifier. In this case, it does not matter if the word is common to other businesses in the area if they are not in the same industry.
Three questions to help along the way
To determine the type of name that your business might need in terms of unusualness there are instruments like the next one that might help. You can determine what types of names to focus on. Weather extremely uncommon or simple words that we use every day. If it needs to be uncommon then you’ll need more time working with made-up words or less used ones. Evaluate your business requirements with the following criteria (Brad Flowers’s The Naming Book. Buy it now from Amazon | Barnes & Noble | IndieBound) This will help you rate in which spectrum your company falls. Select a number between 1 and five in every question.
How much competition do you expect for your business? (1: No competition – 5: Hyper-competitive)
How much money do your competitors spend on advertising? (1: $ – 5: $$$$$)
What is your most likely geographic footprint? (1: Local – 5: International)
After answering all three questions, add up your resulting numbers from each one. More than ten points mean that unusualness is an important consideration to your list of names choosing criteria. If your total adds up to less than ten you don’t need to worry too much about coming up with an unusual name for your company. This is due to the fact that you are moving in a less competitive environment.
At the same time think that to start a business the most important step is actually starting or so I gather from the opinions of successful entrepreneurs when asked about this.
You can spend months and months to create the perfect business plan and while you do all this planning your opportunity passes by. So the most important thing it to actually begin.