7 Mistakes To Avoid When Choosing A Business Name

A business name is the trademark of an organization that its customers and the industry recognize. This element is essential since it enables businesses to identify their offerings and establish a distinct brand identity that stands out among the competitors.   

Entrepreneurs can legally register their companies when they choose appropriate business names. Consequently, they can start operational activities, sell to their buyers, and expand their companies.  

Since a business name is crucial to organizational success, startup owners must avoid these seven costly mistakes.  

  1. Duplicating A Popular Name  

Popular brands already have an established community of loyal followers who repetitively associate their products with them. Since these trademarks are well-known, those companies that copy their names will likely make consumers think they only sell imitation items. Even when their goods are made of authentic materials, they won’t be able to receive a high return on investment (ROI).  

Intellectual property, patented protection, copyright reserved or product trademark that cannot copy concept, businessman owner standing with light bulb idea locked with padlock for patents.

Since duplicating a famous name may result in a negative brand image, entrepreneurs must avoid this at all costs. Instead of copying a brand name from an established corporation, they have to look for other terms that are legally available. Thus, they should run a free business name search online to check the availability of a name before registering it.  

  1. Disregarding Trademark Laws  

Trademark law is managed by a governing body, which provides manufacturers the legal protection for using a name, symbol, or logo. The main objective of this legislation is to avoid reputational damage to a company that initially uses the brand name against those who disguise themselves to sell their products. In turn, this component has the power to prevent other malicious individuals from misrepresenting their businesses while protecting the welfare of the customers.  

Since trademark laws are essential in business names, business owners shouldn’t ignore registering their chosen brand name. When registering for their business, applicants must meticulously complete registration forms, such as an ‘application request.’ After that, they will wait for the Bureau of Trademark to check for existing registered names and make necessary changes to avoid penalties.  

  1. Selecting A Long And Hard-To-Read Name  

When purchasing goods or services, consumers will read the brand name. If customers notice a lengthy and difficult-to-read name, they may suspect that the manufacturing company is fraudulent. As a result, people may decide not to purchase the product and search for an alternative that won’t confuse them.  

Since a lengthy and difficult-to-read name can significantly harm a brand’s relationship with its customers, business owners must avoid making this costly mistake. Therefore, they should avoid employing difficult-to-pronounce phrases, as customers may not want to look for them at the cashier for fear of mispronunciation. They will choose a shorter name with fewer than four syllables for simpler brand memory to avoid losing potential customers.   

  1. Choosing A Name That Limits Business Expansion  

Business expansion is a critical stage where companies achieve a higher level of growth. This approach will allow them to discover additional alternatives to produce more sales revenue and meet the demands of a broader market. However, some businesses make the mistake of choosing a name that limits this milestone, which creates confusion for their customers and investors in the long run.  

Since this mistake might deter prospective clients and investors, business owners must avoid it by avoiding being overly restrictive. Instead of including a specific location or demographic in their brand names, businesses should consider their long-term goals in choosing a brand name. If companies wish to expand into international markets, they must eliminate these restrictive constraints to avoid future problems. 

  1. Brainstorming Alone  

Brainstorming is an activity that combines the generation of new ideas and the resolution of problems. Typically, this is done in a group of at least three people to generate more feasible resolutions. Unfortunately, most startup owners make the time-consuming mistake of doing this task alone.  

Since brainstorming alone can take up a lot of time in choosing a business name, entrepreneurs should prevent this mistake by seeking assistance from their colleagues. When brainstorming with a team, they need to use a prompt as inspiration and list down these words so they can find relevant word associations. These ideas might come from how they want their clients to feel about their products or which actions they take to complete the purchasing process to make it more personal.  

  1. Following A Short-Term Trend  

In modern marketing, a trend is a popular subject that creates a surge in fame on various social media channels within a limited period. This element is essential for online businesses because they can ride the hype of trending topics and attract qualified leads. However, some new business owners make mistakes using this trend to promote their products but lose customers once the trend is over.  

While following a short-term trend is an excellent promotional tactic for digital companies, business owners shouldn’t apply it when choosing a name. Instead, they must think about the long-term relevance of their organizations rather than temporarily taking advantage of their popularity. Once they avoid this common mistake, they will be able to sustain a manageable market share and gain loyal consumers for their credible products and effective service.  

  1. Associating With Bad Image  

Organizational reputation is a generalized public impression of the business and how they operate its activities. When they nurture a good image, they will likely gain more opportunities to expand their businesses and attract more loyal customers. On the other hand, companies with poor credibility may struggle to maintain their current clientele and fail to attract top talent. 

Since reputation is vital in the overall processes of businesses, entrepreneurs need to avoid associating their business name with a negative image. When building a business brand, they must thoroughly research their initial choices and look for possible loopholes that could undermine their credibility.   

Key Takeaway  

Business owners should always create and nurture a positive brand image so they can generate the trust of their customers and prospective investors. Therefore, they should avoid these seven mistakes in choosing a business name for their company. Instead of facing these costly mistakes, they must ensure their names are unique, easy to read, and can adapt to further long-term expansion. 

June McGown