Expat Entrepreneurs: What's in a Name?

One of the first steps in starting a business is choosing a name. Your business name can say so much – so make sure it’s sending the right message.

Master-McNeil, one of the top thought leaders in business and product naming, says that good names concisely and effectively convey “the key benefit the service will provide”. One of their most successful names, Paypal “conveys the speed and ease of use of the service”, benefits that make PayPal “the most popular way to pay for online auction purchases". Master says when you focus on the primary benefit, "the name speaks for itself".

Entrepreneur Magazine spoke with several top naming and branding companies, including Siegel & Gale, Interbrand USA and Master-McNeil, and reported that most experts agree – your business name must send a clear and relevant message. “The more your name communicates to consumers, the less effort you must exert to explain it".

A business name should be memorable, compelling and even inspiring, but not at the expense of a positive message conveying value. You should not force people to think about how you are going to meet their needs. Using a clever name and thinking that everyone is going to “get it” is a big assumption that could backfire.

The top branding firm Siegel & Gale makes an excellent point: “Simple is smart. Clear, customer focused communications are critical.” When it comes to naming a business, simple is better than sexy.

John Williams, Branding and Image Columnist at Entrepreneur Magazine, recommends working with a branding professional, as “what you call your business will be a major part of your brand”.  Without a name that clearly articulates what you have to offer, you could be “endlessly revising materials”, which will be draining on two important resources – time and money.

Personal branding is an excellent tool to use when deciding on your business name because it clarifies your unique promise of value. It also identifies which brand attributes differentiate you from your competition. A business name that clearly and concisely communicates your value and what makes you different from your competitors is a powerful, no-cost marketing tool.

There are some other things to consider when choosing your business name:

• Check trademarks.  Imagine investing time and money into building your brand, only to have someone take you to court for trademark infringement, crippling you with legal fees and possibly bankrupting your business.

• Check domain names. If there is a company who already owns the domain name, yourcompanyname.com, (but does not own the trademark so the name is technically fair game) consider how your own efforts at branding and marketing might actually send people to this potential competitor.

People often go to the .com version of a domain name first. So the challenge of differentiating your company online - getting people to go to your web site with an alternate domain extension, will always be there. Effective branding is about being unique. So it would serve you better to choose a name that will naturally make you stand out, rather than position you to have to constantly remind people how you are different.

• Check to see if your name truly speaks to your target market.  If you choose a cool, slick name for your company, and your primary market is retirees, or people from a conservative culture, do you think the name will resonate with them? Will the name communicate to them in language they understand that you have something that they want?

•  Talk to people in your target market and those who serve them. Talk to as many of those people as you can about what they think the name communicates, and if it is something to which they would be drawn. Input from friends and family can be helpful, but unless they happen to be in your target market, their well meaning advice may not be the most relevant.

It is important that you like your business name, as you may be living with it for the rest of your life. But it is more important that your target market likes it. It should inspire them to take some sort of action that takes them one step closer to purchasing your product or service.

• Check the meaning of your company name in other languages and cultures if you serve a global market. There are many funny stories regarding companies who have failed miserably in foreign markets because they failed to check how their company name was interpreted or perceived in another language or culture. Classic stories include General Motors’s Chevy Nova failure in South America (“No va” means “no go” in Spanish) or Pepsi’s experience in Taiwan, where their slogan was translated as “Pepsi will bring your ancestors back from the dead”.

Although technically any business name could be successful with the right marketing strategy, choosing the wrong name may create more work and drain you of your precious time and money. Most of entrepreneurs just can’t afford that luxury. Making a well-thought out choice about your business name can be one of the best business decisions you’ll ever make.

What do you want your business name to say to your target market?