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Tuesday, 01 May 2018 1:54

Can a Good Company Name Help Your Success?

By - Michael Rader

 Can a bad company name hinder your business, and can a good company name help with its eventual outcome?

A New York University study reported that researchers discovered individuals with names that were easier for people to pronounce often have higher-status positions at work, Business Insider reported. But, does the same go for businesses and brands, as it does for people? Can a companies name choice really determine its eventual success?

When you’re wondering how to come up with a brand name, skip the company name generator and put in a good amount of thought to what you’ll be naming your business. Why? Because good company names can help a company to succeed.

Below are the good and bad when it comes to choosing a name for your business, starting with why a good company name is important to a business and brand’s success:

Good company names

When naming your business, consider these positive factors to help create good company name...

Set the tone of your business name

A good company name will have the correct tone since the tone of your company’s name will the scene for all contact you have with your customers. When naming your company or business, don’t forget that the name will and should give customers an idea of what to expect from you and your brand. This means if their expectations of your brand don’t match up with the reality of what it is you provide and how you provide it, they are going to feel disappointed and like something is wrong.

And, what’s the first component of your communications and the first thing customers see? The answer is, your business or company name. It’s important to get off on the right foot by setting the proper tone to give customers a clear idea of your brand. If the tone is mixed up, people may assume that you don’t have a clear vision and that other parts of your business may also be going awry.

Tell who you are and what you do

The best company names define their business. When you’re thinking of how to come up with a brand name, keep in mind that while you want it to be clear, you don’t want it to be limiting. A good company name is open-ended, allowing for a business’s growth in the future.

If you want to include a location in your name, for example, that can become a setback if you decide to expand your business to more places. While there are some businesses that have been able to expand their range under a narrow name, set your brand up for success by giving the company the right name that can be diversified if necessary.

Simple business names are better

Simpler is better when it comes to company names, and there’s research to prove it. Researchers from the Department of Psychology at the University of Michigan found that unfamiliar names are weak for a business.

According to the study, “low processing fluency fosters the impression that a stimulus is unfamiliar, which in turn results in perceptions of higher risk, independent of whether the risk is desirable or undesirable.” Basically, this means that people usually fear the unfamiliar and are uncomfortable with what they can’t understand.

Consider this study when naming your brand. Of course, you want to reduce the barriers that keep customers and investors alike from buying into your business and your brand’s vision. So, if your company name is tricky to pronounce or hard, hard to spell, or doesn’t relate to your product or service at all, you could be creating a barrier and hindering your own success.

In the end, this means short, simple, and easy company names will provide your brand with a better shot at success.

Bad company names…

Just as there are ways that a good company name can help a business to succeed, a bad company name can do some damage to a brand. Bad company names will  do the following...

Lack attention to detail

If a company didn’t take the time to name their process correctly and take the naming process seriously, it casts a negative shadow over the business as a whole. After all, how can a brand be expected to take their business, customers, and/or individual products or services seriously if they didn’t even take the time to flush out a great name?

Paying attention to detail with your company name shows that you will also pay attention to the fine details of your products and services.

Don’t motivate you

The most important and driving force of your business is yourself. That being said, if you aren’t inspired by your business, it likely won’t succeed as far as you’d hoped. Pick a company name that helps you genuinely believe in what you are creating to push you hard to get your brand to where you want or need it to be.

After all is said and done, business names can either help or hinder a brand’s success. This means selecting a brand name is an important step in your journey with your business, and one to step a great deal of time and thought on. Consider the information above during your naming journey and before settling on the perfect company name.

Last modified on Tuesday, 01 May 2018 2:18

Michael Rader

With over ten years in web development and design, Michael Rader has expertise and technical know-how. But more than a skilled technician, he is an entrepreneur and innovator who helps startup’s and new businesses identify and define their future with a unique, brandable business name. Michael Rader is the founder and CEO of Brandroot®, a leading .com domain name marketplace. He currently lives in Kailua-Kona, Hawaii where he operates the business and authors a blog dedicated to naming and brand name establishment.