Choose a Company Name

Many large corporations and manufacturers employ naming companies to assist them in choosing names for their companies or products. Studies show that the name a company selects is vital to the success or failure of its business, product or service. Use these standards to choose a company name.

Steps

Researching Target Markets and Messaging

1. Research the market you will be selling to. Is your product or service a luxury item appealing to an upscale audience, or will it be purchased by people with less disposable income? This information will greatly influence the type of company name you choose.
   • For example, for an upscale audience you could consider a French name such as "La Petite Chou" as opposed to "Joe's Bar and Grill."
2. Consider the message you want to convey. This would be a good time to write up a company mission statement if you don't already have one. If your goals are to save people money, offer a higher quality product or help save the environment, you will want your company name to reflect this.
3. Make a list of product attributes. Think about the ways your product is better than the competition's. Is it faster, less expensive, easier to use, built with higher quality materials, or does it come with a long-term warranty? Write these down and then use a thesaurus to look up synonyms for these attributes.
4. Add adjectives or make up words. For example, a clothing company could add "urban" for Urban Adventure. An innovative software development company could be Univation. Or add a personal touch using a name such as Betty's Homemade Pet Treats.
   • Avoid using "fancy" words when simple ones will do. For example, don't use "Epigraphic Technology Corporation" if no one will know what epigraphic means.
5. Consider puns or alliteration. A good example of a play on words is The Reel Bait Company. Alliteration (two or more words beginning with the same letter) was used well with Jamba Juice. These can help make a memorable company name.
6. Consider portmanteaus or literary references. A portmanteau is two words combined into one, such as Groupon. Alice's Wonderland of Fun might be a great name for a toy store.

Utilizing the SMILE and SCRATCH Tests

1. Ensure your company name adheres to the SMILE standard. SMILE stands for Simple, Meaningful, creates Imagery, has Legs and evokes an Emotional response. If you can incorporate most of these standards you will have a company name that resonates with potential customers.
   • Create a name that is "Simple." The name should imply a single, easily comprehended thought to your customers and clients. Any name that relays complex concepts should be ruled out immediately. Compaq Computer worked well when small PCs and laptop computers were first introduced.
   • Pick a company moniker that is "Meaningful." The company name will be how customers learn about the purpose of your business. The name must give customers an immediate understanding of what you do or the service you provide. Victoria's Secret is a good example.
   • Select a name that creates "Imagery." Customers should get a mental picture when they think of your company's name. Discard any ideas that do not instantly create an image in your mind. For example, Subaru Outback gives one an image of a rugged car out in the wilderness.
   • Ensure your potential name has "Legs." The name should be strong and clear enough to carry the brand to the customer's mind. Additionally, a name that can be used with many marketing opportunities or slogans is beneficial. For example, who could ever forget the Piggly Wiggly supermarket?
   • Choose a name that evokes an "Emotional" response. Empower or engage the customer with your name. Save the Children catches our attention and encourages us to help.
2. Disregard any names that qualify for the SCRATCH standard. SCRATCH stands for Spelling-challenged, Copycat, Random, Annoying, Tame, Curse of Knowledge, and Hard to Pronounce. Company names with any of these characteristics will turn off potential customers and may affect future sales.
   • Get rid of a name that is "Spelling-challenged." Don't use any name that is difficult to say or spell. For example, Hephaestus is the Greek god of blacksmiths, but you would probably not want to name your metal works company after him.
   • Refrain from being a "Copycat." Naming yourself something similar to your competition will only confuse your company with another. For example, IVM is way too close to the well-known IBM.
   • Avoid names that are "Random." Random names that do not provide a connection to your purpose or product are disadvantageous. An example would be The Red Company. Is this someone's name who has red hair, or could it be a company that sells paint or clothing?
   • Reject a name that is "Annoying." Picking a name that seems forced or is irritating to hear or say will not encourage potential customers to frequent your business or purchase your product. A restaurant called Spageddies comes to mind or an ice cream shop called Udders.
   • Dismiss names that are "Tame." Names that are missing inspiration or passion are useless and miss great marketing opportunities. "The Cloud" might define what a business is about, but it certainly lacks passion.
   • Stay away from industry jargon or the "Curse of Knowledge." If your name only addresses information known by industry insiders, keep searching for another name. For example, Amphenol might only be recognized by other pharmaceutical companies.
   • Set aside any names that are "Hard to Pronounce." Names that are difficult to say or rely on specific punctuation should be set aside. Most people do not know how to correctly pronounce "croissant" much less spell it.
3. Conduct a trademark search to prevent duplication. Many states have online databases with names of companies that have already been taken. Check with your state's Secretary of State or the Department of Finance and Taxation.
   • The U.S. Patent and Trademark Office offers a free online Trademark Electronic Search System database. You can enter the registration name of any trademark you find into the Trademark Applications and Retrieval Database to find out if the trademark is currently registered or has lapsed.
   • Consult the Thomas Register. This directory lists business names and registered trademarks. It's available online or your local library will have a printed copy.

Considering Marketing Tips

1. Brainstorm a name that starts near the beginning of the alphabet. Many search options and phone books divide companies alphabetically. Naming your company with a letter at the beginning of the alphabet ensures its placement near the beginning of the list.
2. Keep the name short. Long names are harder to remember. A name in a foreign language might also be harder to remember, unless it is very short.
3. Don't use geographic regions. Open your company up for future growth. Resist the urge to use your geographic region in your name, because your company may expand later. Rochester Paint Supply might limit you to only that area.
4. Test the name. Ask family and friends for their opinion and perhaps give them several choices. You can also hire a market research company to form an objective focus group. Seriously consider their input before making a final decision.
   • You can find market research consultants through a local chapter of the American Marketing Association.

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Sources and Citations

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