When you are brainstorming the perfect name for your business, you may find that certain people will tell you not to worry about your business name because they believe they lack any tangible value. These people believe that names are just additional frills that you should not invest your time and resources into as an entrepreneur. However, research actually proves them wrong. Studies show that simple, fun names outperform non-captivating and boring names on the stock market by 33%. This is a significant difference in performance that may be at least partly due to the valence of the name.
Instead of looking directly at the exact monetary value an effective brand name may have, it can be helpful to consider the opposite. How can a weak brand name diminish the value of your brand and devalue your presence in the business world? Throughout this article we will consider all of the possible ways that a brand name can have a negative effect.
A Poor Name Won’t Set a Solid Brand Foundation
In today’s cut-throat market, first impressions are everything and can often make or break a startup. Typically, your brand name will be the primary connection a potential client or customer hears has to your brand. Your brand includes many different aspects of your brand including your values, beliefs, name, corporate logo and other things. Essentially, a successful name should show your customer who you are and how you want to run your business. It should all be rooted in the context of your brand.
The name and the logo of your startup are basically the core identity of your company. If it is not strong enough to support your business, it will not be able to carry your brand forward to set the stage for success in the future. Budget constraints is a big issue with startups, You can get your logo designed easily using a logo maker you can use free name generator tools to create a meaningful name for your business.
Fail to Capture Audiences
A name should build a strong connection between you and your target audience while also offering the audience something that they can hold on to. For example, a part of the reason Apple is so such an effective business name is that everyone in their target audience knows what apples are. It is one of the most common, accessible fruits, and it is a simple, physical object. Naming a technology company after a tangible object is intriguing and is part of the reason why the name is successful. Additionally, think about the tone that you use. Certain tones may be boring or lackluster to your target audience.
Drive Audiences Away
As much as your name should interest your audience, you should also double check that it will not drive them away on accident. Difficult, rude, or offensive names may alienate a large section of your customer base. Make sure that you don’t select a company name that is offensive or embarrassing, as it will send the wrong message to your target audience and cost you sales and referrals.
Audience testing is a quick and easy way to ensure that your name performs well with a target audience.
A Forgettable Name = A Forgettable Brand
Even if a customer truly wants to remember your startup brand name, if it is boring, lackluster or too confusing to say and write, they probably will not remember it for very long. When your target audience fails to remember your name, it is a clear sign that you will lose out on sales.
A memorable name makes for a brand that your customers will never forget. You can make sure that your brand does not fall by the wayside by brainstorming a unique, snappy, and memorable name. Check out this amazing list that’s full of some winning company name suggestions to give yourself a better idea of what type of names catch your attention.
Lose Referrals
A good name not only has the power to captivate and draw in an audience, it can also drive referrals and make spreading your brand easier. Even if you had someone use your services or purchase your products, if they can’t recall your name or if they find it too difficult to say out loud, they are less likely to pass it along to friends and family. Then, you get fewer sales because your name failed to carry your brand to the future.
Conclusion
Every tiny aspect adds up in the future, and if your name can aid you in getting an extra piece of press coverage or a couple more chains of referrals, it makes a gigantic difference. A business name can actually really impact your business success.
When you are coming up with a business name, remember that a name is more than a simple word. It creates the foundation for your business, and it can be a helpful tool in creating success for your brand.
About the Author:
Grant Polachek is the Director of Marketing at Inc 500 company Squadhelp.com, the worlds #1 naming platform, with nearly 20,000 customers from the smallest startups across the globe to the largest corporations including Nestle, Philips, Hilton, Pepsi, and AutoNation. Get inspired by exploring these creative business names.
