How to name a new business
Saturday, July 25th, 2009 by Ross
We met a business last week that had just launched 6 months earlier, what became apparent during the meeting was the total failure of process and thought by the original designer/agency in one of the most basic fundamental elements of branding. The name was clearly a barrier for success, let alone the confused visual treatment. It is often hard to assess the value of one name over another and when personal opinions are considered it can be a very stressful decision.
Below are some ways you can think about your company and make the most of what is available to you. Of course you can pick a range of names and if you have time, money or an idea that will create such traction of it’s own it becomes less critical. However in the crowded environment we live it is esential to select your name and identify the visual elements of your brand mark carefully. (I will post soon about some other critical choices including typography and colour).
The right name has the potential to become a self-propelling publicity campaign, motivating word of mouth, reputation, recommendations and press coverage.
Here is some advice on the types of name you can select:
Founder – Many companies are names after founders: Ben & Jerry’s, Martha Stewart, Ralph Lauren, Mrs Fields. It might be easier to protect. It satisfies and ego. The downside is that it is inextricably tied to a real human being.
Descriptive – These names convey the nature of the business, such as Toys “R” Us. Find Great People, or E’TRADE. The benefit of a descriptive name is that it clearly communicates the intent of the company. The potential disadvantage is that as a company grows and diversifies, the name may become limiting. Some descriptive names are difficult to protect since they are so generic.
Fabricated – A made-up name like Kodak, Xerox, or TiVo, is distinctive and might be easier to copyright. However a company must invest a significant amount of capital into educating its market as to the nature of the business, service or product. Häagen-Dazs is a fabricated foreign name that has been extremely effective.
Metaphor – Things, places, people, animals, processes, mythological names or foreign words are used in this type of name to allude to a quality of a company. Names like Nike and Patagonia are interesting to visualise and often can tell a good story.
Acronym – These names are difficult to remember and difficult to copyright. IBM and GE became well known only after the companies established themselves with the full spelling of their names. There are so many acronyms that new ones are increasingly more difficult to learn and require a substantial investment in advertising. Other examples: USAA, AARP, DKNY, and CNN.
Magic spell – Some names alter a word’s spelling in order to create a distinctive, protectable name, like Cingular and Netflix.
Combinations of the above – Some of the best names combine name types. Some good examples are Cingular Wireless, Citibank, and Hope’s Cookies. Customers and investors like names that they can understand.
Qualities of an effective name (more…)













