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Friday, 27 September 2013 8:22

Business Naming Mistakes: How to Destroy Your Business Before Opening the Doors

By - Michael Rader

Let’s say you just finished developing a fabulous business idea. Now you have a great product line, an online retail store with a top-notch design and plenty of investors to back you. What could possibly prevent you from bringing in the cash? As important as it is to have the proper bankroll, great design, and a product line that consumers would jump through fire to get their hands on, it is equally important to establish the right business name.

As great of a service or product as you might think you have, someone else is selling the same thing. For example, if you have an online surf shop with all sorts of gnarly items available, someone else has something similar just a Google click above yours (or below, if you’re lucky). Your shop might be superior, but surprisingly, the shop and its product are not everything. You have to first get people in the door and away from the other surf shops, before people will begin to trust and return to your site.

What is the most recognized name in retail electronic shops? Best Buy. What’s so special about Best Buy? Nothing really. Aside from their branding, they aren’t all that unique. You can purchase the same electronics at many other stores. And in most cases, you can get them for equal or lesser cost. Despite that, Best Buy continues to thrive. They are a multi-billion dollar corporation while other similar companies are struggling. Why did Best Buy become such a giant while others failed?

Choosing the PERFECT Name…

What if the founders of Best Buy had chosen, say, Bob’s Electronics instead? Think they would have been as successful? Probably not. Bob’s Electronics isn’t catchy. It’s not the type of name consumers will remember. It isn’t catchy in the least bit. The name “Best Buy” is simple and quickly gets the point across. They are the best buy for electronics…allegedly.

Without their catchy, easily remembered name, the company never would have taken off like they have. Sure, they’ve always done a fantastic job marketing their yellow-tag logo and they only sell the finest electronics out there. But without the proper name from the start, this is a business none of us would be familiar with.

It’s obvious that Best Buy was able to brand their name because they had the money to do so. It’s not easy to create a brand for free. You can post links and ads all over forums and social networks and tell your friends to pass the word on about your new business, but if you aren’t willing to invest at least some money, branding is very difficult to pull off. You don’t have to come up with millions of dollars to market like Best Buy did. Start out small. First get the perfect name, one that is short, memorable and unique then begin investing $500 here, $500 there. Build your business identity slowly and watch it spread. It takes time, but when done right with the right name, your new business may someday become the new Best Buy.

Last modified on Friday, 27 September 2013 8:41

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.