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Naming your company

04 April 2009

As a business coach and mentor working in the Midlands and London, one of the first questions that my entrepreneur start-up clients ask is what name should I have for my company. This article helps with this challenge of what to call your company and what things need to be taken into consideration, whether you use your own name a name off the shelf or a name you create.

After reading this tip sheet you will:

have a good idea of the different aspects of choosing a name for your company
understand the need to know what market your are after and the company’s goals and outcomes
discover the advantages of using your name if you are known well in your target market
know how the internet and Company’s House fits together during the naming process.
be able to present the pros and cons to other people who might be involved in the naming process

Naming your company

Using your own name…
1. One main advantages of using ones own name is that anyone who knows you will instantly know who they are dealing with as soon as they see a letter, advertisement or any promotional material. This is especially important when you are going to market into a market that already knows you due to your activities with another company or organisation
2. Another advantage is that over time any investment in marketing will be in your name brand and can be applied to you as a person, which is very important if you are the one that is providing the service and the knowledge. This can be crucial if your are going to write books, CD’s, downloads on your website or www.clickbank.com or appear on the speaker circuit
3. If you use your name then it is important to have a catchphrase, strapline or sub title line that explains succinctly what is being offered.

Using a name that is not your own…
1. If you are going to start a limited company with other shareholders it is probable that you will use a name that is not your own and describes what the company does
2. If as a sole trader an advantage of having a name other than one’s own, allows you to move on to another sector totally separate and different from the one you were involved in, without being linked to the previous business
3. An advantage of choosing a name that is not your own is that it can describe exactly what and maybe even where you are based if you include the geographical name of where you operate from i.e. Earlsdon Landscaping or Leamington Photographers
4. A disadvantage to having a name that is not your own is that anyone who does not know you will not know what service or product is being supplied
5. Any investment in the brand name will add incrementally to the value of the company, which will eventually add up to additional value of goodwill, should the company be sold in the future

Note:
1. Be aware that whatever name you use as a sole trader should be checked on the company’s house website www.companieshouse.gov.uk that it is available in Limited Company form in case you want to grow the company into a limited company. If this is the case then you might consider registering the name but registering it dormant until you need it
2. Whatever name you decide on, check that it is available as a domain name if that is what you want your website to be called www.godaddy.com is one of many companies where you can check on availability and purchase it as well for about £5/year.