A Few Important Tips in Selecting a Business Name!
Mar 27 2025
Management
Choosing a business name is highly important and it should not be taken perfunctorily. Simultaneously, avoid excessive sensitivity, do not act emotionally, and move according to the techniques mentioned.
In some industries, it is common to select the name of the manufacturer of a product or the founder of a business for that product or business. When you put a surname on your business, you will lose the value that the name can create once you decide to sell that business. In some cases, up to half the price of a business may belong to the name and the brand that occupies a special position in the market.
When intending to buy a restaurant, you may think about how well-known its name is and how many customers it has, and how many customers will be influenced by the fame that the name of that restaurant brings. Suppose you name the restaurant “Alex Smith!” When you decide to sell that restaurant, it will lose the value that is supposed to have due to the name.
Anyway, you or your heirs may decide to sell the business, for any reasons; therefore, it is recommended to avoid a name that is associated with your first and last name. Nonetheless, some people still prefer to use their name, and some of them have even be more famous than one can ever think.
Sometimes the names that are used for the business are quite irrelevant to the activity type. Also, some letters have no special meaning; such as the word Google.
In some guilds, having a sign of the activity type in the name is advised; in the florist guild, for example, marking the name with any impression of flower is advised.
The business name can explain the activity that is being performed; “Southwest Airlines”, for example, which provides air transportation services in the southwestern part of the country. The name “Chef” implies that the business is probably a restaurant or has something to do with food.
In some businesses, the name does not need to imply the activity type. In fact, the shorter the name, the better it will be for branding.
The use of meaningful words in naming the business should be programmed. The meaning of the name should be exactly related to the activity of the company and the products and services offered by it, yet, it should not be misleading; for instance, you cannot name the business “Sarmaza”1 , while producing heaters!
When hearing the word “Apple”, for example, you will neither be misled nor presuppose the business type! There is already the brand Apple for digital goods. There is a restaurant named Apple, and hundreds of other businesses have that title in their names. Apple is a generic term and it is not misleading.
It is possible to select a new name for your business in the middle of your activity for any reason. These reasons can include mistakes in the primary selection, technology changes, societal conditions, and the new competing entrants into the market. Nevertheless, making the right choice at the beginning is extremely important for the future and growth of your business.
It was mentioned that you do not need to think about the different aspects of the name at the beginning. You can simply write down whatever comes to your mind as you begin to brainstorm for names that you can use for your business.
A big bug in naming a business is that some people become so interested in a name that they emotionally keep it on the list of names to be evaluated and when checking various dimensions, they ignore that name’s shortcomings because of their preference for the name.
Business must be distinguished from interest. Look at business issues smartly; decide how you can achieve results by considering new and various angles of the issue. Observe issues critically, pay attention to the rules and necessary standards based on your conditions and the market’s conditions.
By selecting an appropriate business name, you can stay in the market for a long time.
