Choosing a Company Name
Summary:
Choosing a
company name may be a simple snap decision. For other companies, many hours are
spent deliberating over how what the company should be called and what the name
conveys about the organization to its clients. Several approaches may be taken when deciding which type of company name to choose.
Keywords:
company
formation, company formation agent, limited companies, company registration,
company names, business, new, small, advice, starting, UK, forming, limited,
company, name, incorporation
Article Body:
When forming a
limited company the name of the company can be an important decision. Some
people may choose the first name that they think of and others may select a
ready-made company for speed or because they like a particular name. However,
many businesses may prefer to select a company name that either clearly
distinguishes itself from its competitors or contains something unique or
personal. Company names can be chosen for different reasons.
One of the most common ways of selecting a company name is to use something
personal. A quick look through your local newspaper will probably introduce you
to many personalized business names. Johnson Consulting Limited, T Smith &
Son Limited, and Stephens & Barley Limited are some fictional examples of what may
be found. This may instantly make a company recognizable locally, it can be
deemed as more personal by its customers, and often works well within
geographical areas. However, it does little to tell new customers what your
company does.
A popular choice for a small business is to choose a name that is
‘descriptive’. This tells prospective clients exactly what your company does.
Examples of this may be to call your business The Window Company Limited, City
IT Consultants Limited, or The Advertising Agency Limited. Whilst this does
serve to reinforce your primary business it offers little differentiation and
may easily be adapted by competitors.
A less personal option is to use a company name that is ‘associative’. This
type of company name helps to create an image or connection to your business
activity. It is less direct than using a descriptive name but helps to position
your company’s name within the market through people's understanding of what
words mean. For example, a flick through the Yellow Pages will offer plenty of
examples of this. A hairdresser called Classic Cuts or a printer called
Selectaprint Limited are examples of what may be found. These names offer some
differentiation but may not ultimately set your company aside from its
competitors.
An alternative is to choose a company name that is ‘freestanding’. These names
are completely abstract and not related to the company's business activities. A
fictional example may be to call your catering company Zedoc Limited. Many popular brand names illustrate this point. Consider, Kodak, Gillette,
or Mars, these names will probably be instantly recognizable to you and conjure
up a particular product or business. This is a good way of setting your company
aside from the competition but it is important to consider the market that you
operate in. Will your prospective clients know what your business is
offering?
Choosing a company name may be a simple process, but it is not uncommon for
people to deliberate over names for quite some time. Whilst company names can,
and often are, changed during the life of the company most people like to
choose a name that they like from the outset. Therefore consider your market,
how much you want to differentiate from your competitors, and what your company
name should say about your organization. Once the decision is made focus on the
important business of making your company a success.
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