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Four Basic things to consider when choosing a Business Name

Updated: May 22, 2023


Power-of-Business-name

I guess you are looking up for a name for your business. Yes, I got it. You need a name for the new business idea, which means you want to start afresh or you have already commenced the business but would like to change the business name. Don't worry, I got your back.


You will discover the basic element to look out for, when developing a business name that lasts.


A business is an entity providing products and services to satisfy its customers in exchange for money, trust, values, and many more related to the business world. Any action with relation to the exchange of value for products or services is a business be it a profit-making organization or non-profit organization is noted as one, a business.


I have had people ask me how do I choose my business name. ''I have all plans to skyrocket this business idea of mine but I am stuck. Don't know what to do?''


Here are four things you should consider before giving your business a name. Don't just pick a name. This is how you do it.


Mission and vision of a Business

What is the mission and vision of the business? What is the driving element that persuaded you to start planning on the business in the first place? Know where you want to go and how you want to drive the business too. No one is going to tell you this is the M&V for your prospect business. Start planning, think critically about yourself and why you got the idea to start a business in the first place. If your business is a company involve your board of directors to decide on the best mission and vision statement for your firm. If it is also a partnership, involve your partner in the decision of your M&V. You can also consult a Business Consultant / Coach to guide and help you out.


Mission-and-vision-of-a-business

Target Audience of your Business

Who are the main reasons why you are bringing this business out? What problem are you solving for the target audience? Do you know their taste and preference? If you don't. Find out. Niche down your target audience.


Assuming you planed of producing a clothing line. It is your duty to find who your customers are, what are their tastes on the proposed product. Niche them down. Don't make it open.


Start by serving customers in a small niche area like satisfying the needs of pregnant women. This is done by producing attire for pregnant women. This will help you to produce a product range which the market wants and after you have gain ground in the market, you can open wide the niche a little more. Add plus-size clothing and other clothing specialized for women. Know your customers. Know your demographic. Know your market segmentation.


Product or Service

A Business Name comes into play by considering the product and services you will be producing and or rendering. What is the type of product you will need to have on board if your business is new? Or what are the portfolio of products and or services in your firm`s name? Take into account the composition of the product and why this product. Acknowledge the initiative other competitors are doing in your niche market. Don't copy.


The Brand you want to establish

Brands are not all about colors, logos. It requires a name, the internal affairs of the business, and what comes out of the business for viewers to see. When you start a business, people are watching, when it grows your firm gets noticed in whatever it does. Customers, competitors, and other stakeholders are watching.


What impression are you giving to people especially customers to identify you as? What image are you creating when they mention your business name. Brands also represent products the firm brings on board. Choosing names that can be noticed by stakeholders is important. As soon as they mention your business name, everyone knows what your firm is, what it does and values it instill to others, and a lot more. When you mention Facebook, Amazon, Tesla, Microsoft, Paypal everyone knows it, and what it does. Let me put it this way, most people know who these listed companies are, Google, LinkedIn, Barclays, Nestle, KPMG, Bain and Company, PWC and many more. Your brand is not just about the beautiful logo but the name you give it and the brands they bring onboard serving different types of customers and the value they send across.


Don't think Google is "Google" because of only the name. There are a lot of internal and external steps and initiatives they execute that are recognized by all.


These basic things are the fundamentals that need to be set right before you decide on the business name. As you plan on the business name, think about these four elements before you develop one.


Don't just give any name to your business because you like it. Critically, Assess it before you do so.



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