By Wendy Klug
This article will provide a brief walkthrough of the steps to establish your business name, one of the first and most important steps you need to take for your business. It will also give you some tips and tricks on naming your business, along with some tools to help you brainstorm.
As you build your business, establishing an effective business name is one of the most valuable business assets you will have. It will forever be associated with your business name and brand name, so you want to choose wisely and get it right the first time. Selecting a business name that conflicts with someone else’s business name or brand name can be a recipe for disaster. Don’t get excited and order business cards before doing your homework on choosing a business name. (Otherwise, you might find that you can’t use that name, and you just wasted money on business cards! I see this happen all the time)!
To be sure you have the legal right to adopt the name of your choosing, be sure to ask these two questions.
1: Is The Name Available For You To Use As A Business Name?
Your business name is simply that— the name of your business.
It identifies your company on tax documents, official corporate documents, bank accounts, etc., and is registered with the Secretary of State in the state where you do business. You generally choose your business name when you choose your company structure, such as a sole proprietorship, partnership, limited liability company or corporation.
A name will generally be available for use as a business name so long as it is not identical to a previously registered business in your state only. This means that 49 other businesses, one in every other state, could potentially have the same name as your business, even if they’re competitors! The bottom line is that registering a business name does not mean that you have the right to use that name as anything other than a business name in your state.
When considering your business name, you will want people to be able to tell from the name what you are selling through the business.
Remember, it may not always be the best thing to include your name in the business name if you eventually want to sell the business to someone else. If you decide that you want your business to handle a different type of product and you have a corporation or a LLC, you can use a DBA (Doing Business As) to establish your new operation. Just remember that this is a critical step in the life of your business.
2: Is The Name Available For Use As A Trademark?
Trademarks, commonly referred to as brand names, identify your business’s products or services in the marketplace and distinguish them from your competitors. They serve a different purpose than business names, as they are deemed property rights generated through commercial use of the trademark. They are secured through registration with the U.S. Patent and Trademark Office. Unlike business names, trademarks are enforceable nationwide through both the federal and state courts. It is important to remember that a trademark is not required.
Here’s where it gets tricky. Sometimes business names and trademarks are the same, but often they’re different. Just because a name is available as a business name does not automatically render it available for use as a trademark. If you also intend to use your business name as your brand name, or trademark, then you need to ensure it is legally available for that use too. Check with the US Patent and Trademark Office uspto.gov.
Now that you have learned a little about the legal part of adopting a business name, let’s get started with “picking a good business name.” Here are some pointers to consider, ones which should help you go down the right path.
8 Pointers For Choosing Your Business Name
Keep it simple and memorable
A simple name is significantly easier for customers to recall, pronounce, and share with others, which is invaluable for organic word-of-mouth marketing. A memorable name sticks in people’s minds, building brand recognition effortlessly
Reflect your brand and values
Your name should immediately give customers an idea of what your business does or stands for, or the feeling it evokes. This helps attract your ideal clientele and communicates your unique selling proposition from the very first impression.
Consider your target audience
Select a name that genuinely resonates with your ideal customers, using language and tone that appeals to them directly. A name tailored to your audience helps in forming a stronger connection and effectively attracting the right market segment.
Avoid trendy or obscure words
Trendy names can quickly become outdated, making your business sound passé in just a few years, which impacts its longevity. Obscure words might confuse or alienate potential customers who don’t understand their meaning, creating a barrier to entry.
Say it out loud
Pronouncing the name aloud helps you gauge its flow, ease of pronunciation, and how it sounds when spoken in conversation. A name that’s awkward or difficult to say will be harder for people to remember, recommend, and discuss.
Get feedback
Solicit opinions from a diverse group including friends, family, and potential customers to gain varied perspectives on the name’s clarity, appeal, and memorability. This external feedback can reveal unforeseen issues or highlight strengths you hadn’t considered.
Think long-term
Choose a name that will grow with your business and won’t limit your future expansion into new products or services or different markets. A versatile name allows for adaptability and evolution as your business matures.
Avoid weird spellings or numbers
Using spellings like “Xtreme Kuttz” instead of “Extreme Cuts” or incorporating numbers like “2 Good 2 Be True” makes your business harder to find in online searches and difficult for customers to spell correctly when trying to refer you. Such names often appear less professional and are harder to recall accurately
Using Ai (Artificial Intelligence)
Using AI (artificial intelligence) as your brainstorming partner is often not considered part of the process when it should be the leader of it! AI can give you more insight into a business name within 1 minute than if you spent your entire day researching it! Here are 2 ways to use it when naming your business:
Utilize AI business name generators
Leverage AI-powered business name generators (like Namelix, Shopify’s tool, or even direct prompts with large language models like ChatGPT) by providing detailed and specific input. Instead of just a single keyword, include your business’s core services, target audience, desired brand tone (e.g., modern, playful, sophisticated), and any unique selling propositions. This allows the AI to generate more relevant, creative, and tailored name suggestions, moving beyond generic combinations to truly capture your brand’s essence.
Refine and iterate with AI for availability and meaning
Once you have a list of AI-generated names, use AI’s capabilities to further refine your choices. Many AI naming tools integrate domain availability checks and even social media handle availability, saving you significant manual research. Additionally, you can prompt the AI to explain the meaning or connotations of suggested names, or to generate variations of a name you like to explore different spellings or styles. This iterative process helps ensure the chosen name is not only creative but also practical and legally viable.
The Takeaway
To develop your business name the right way, and especially if it will be the same as your trademark, be sure to do your homework! You will also need to make sure to clear it with the Secretary of State in the state where you do business and as a brand name with the U.S. Patent and Trademark Office (if you go this route too). Most importantly, look before you leap! Many factors affect whether a name is truly available for use as a trademark. This is a complicated area of the law, and it would serve you well to get some legal advice before taking the plunge.
