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What Circumstances Make a Company Name Important?
Does a specific name matter to a business? It can matter a great deal, depending on the nature of the operation.
Situations in which name selection is very important:
o A retail store/warehouse/outlet is hard to locate; and/or prospective customers need to search for contact information online. If the name is hard to remember, people will have difficulty locating and buying from the business.
o A new business needs an instant connection to its target audience. When I started The Entrepreneur’s Friend™, I chose a name that is descriptive by nature. Anyone searching entrepreneurship on the web might come across it. And, the target market – you! – can easily identify it as a resource.
o Widespread name recognition is essential in order to generate a high volume of sales. Generally, such recognition is expensive, requiring a significant marketing budget. The cost of a name change could be prohibitive.
o An experienced, well-known person in an industry becomes self-employed, building on name recognition. When my husband and I started Wheaton Group, we wanted to keep it simple and build on our combined reputations in our industry. Anyone who knows us, and knows we consult, can easily find us online.
Situations where name selection is less important:
o A small business has one physical location, is unlikely to move, has clear signage and is situated close to its target audience. For example, Pete’s Pizza Palace, next to a college campus. Or, Meg’s Deli, a sandwich shop at street level in an urban center.
o A change in positioning for one of these small businesses may make name selection very important. For example, if Meg’s Deli wanted to focus on quick service as a key selling point, a name change to Meg’s Deli Express would be warranted – and critical to success.
In any case, every company name should be carefully chosen. More about this next week!
Until we meet again,
The Entrepreneur’s Friend