Coming up with a company name: choose a good name in 7 steps

Have you ever heard a business name and thought, "If only I had thought of that one!"? The good news is that you too can create such a catchy and enviable name. Coming up with the perfect business name doesn't have to cost anything except time and creativity. Time is a costly investment, but with the right approach, it can lead to a name that is both memorable and meaningful.

In this article, we share valuable tips and steps that will guide you in finding that unique business name. Whether you start with a blank page or already have a few ideas, these strategies will enrich your creative process and help you choose a name that resonates and sticks.

What is a good business name?

Before we explain to you the steps you need to follow to create a successful business name, we must first define what a good business name is. A good business name meets the following 10 points.

1. Unique and distinctive. A company name must stand out from competitors to stand out in a crowded marketplace. According to Kohli and LaBahn (1997, Creating Effective Brand Names), distinctiveness is important to avoid brand confusion.
2. Association business name. A good company name ensures that someone immediately has an idea of what you do or what you offer. And this even before you have had to say anything. The name should match the values, interests or needs of the intended target audience. Names that are relevant to the target audience increase brand loyalty (Aaker, 1991, Managing Brand Equity).
3. Positive connotation. If your brand evokes a positive association in people, it can improve brand perception (Keller, 1993, Conceptualizing, Measuring, and Managing Customer-Based Brand Equity). This can lead to higher brand loyalty and higher willingness to pay a premium price. We also recommend avoiding negative words in your company name, as they can lead to a negative association.
4. Easy to remember. Company names that are short and simple stick better in consumers' memories. Studies show that short words are better processed and remembered by the brain (Miller, 1956, The Magical Number Seven). So don't choose a company name that is difficult to spell. It is also unwise to choose a name that deliberately incorporates a spelling error. Good examples of easy-to-remember names are Apple and Nike.
5. Easy to pronounce. Names that are easy to pronounce are shared more often and are more accessible to a wider audience. According to research by Laham et al. (2012, The Name-Pronunciation Effect), names that are easier to pronounce are rated more positively.
6. Easy to spell. In addition to being easy to pronounce, a good business name should also be easy to spell. Therefore, avoid hyphens and numbers in your name, for example.
7. Suitable for internationalization. Even if you start in the Netherlands and have no plans yet to cross the border with your products or services, we recommend choosing a company name that also works well abroad. Therefore, check the meaning of the name online. It is important not to suddenly find out that your name has negative connotations in the other language.
8. Availability and legal protection. The company name should ideally be available as a domain name and be legally protectable. You want to obtain exclusive rights and avoid legal conflicts.
9. Name is future-proof. The market of supply and demand is constantly changing. Keep this fact in mind. Now you may only offer shoes, but you may need to expand into a complete clothing line in the future. This doesn't even have to mean that you will be operating in a different industry, but customer demand is constantly changing. You don't want them to think you only sell shoes.

Not misleading. Your business name should not be misleading. So do not call your company royal or sustainable if it is not. Also, don't put a BV after your business name if you have a sole proprietorship.

7 essential steps to follow for a successful business name

Coming up with a distinctive and attractive business name is crucial to the success of your business. That's why we've listed these 7 essential steps to coming up with a successful name for your business:

1. Determine your business identity. Identify your company's core values, goals and target audience to come up with a name that reflects these aspects. Our brand identity guide and article on brand key model can help you with this.
2. Brainstorm creative ideas. Generate a list of potential names by applying various brainstorming techniques, such as combining words, using alliteration or rhyme, and exploring mythology, literature or foreign terms.
3. Check availability in Trade Register. Search the Trade Register to check if your chosen name is already in use by another company.
4. Evaluate uniqueness and distinctiveness. Make sure your company name stands out from competitors and is easy for your target audience to remember.
5. Check that your business name is easy to pronounce and spell. Have other people pronounce and write down your potential business names. Then you will find out if you have chosen a good business name. This will also bring up potentially undesirable associations.
6. Check the meaning in other languages. Check if your company name means something crazy or negative in another language. You can quickly check this via AI tools.
7. Verify trademark and domain name availability. Check that your company name is not already registered as a trademark and that the corresponding domain name is available for your website.

By following these steps carefully, you can develop a strong business name that differentiates your company and provides a solid foundation for successful marketing and branding strategies. It's also wise to start thinking about whether you want to use your business name as a brand name as well. Step 2 is an important part of the process. Therefore, we list quite a few good tips and points to get you started in coming up with a good business name.

Make up your own business name with these 8 creative tips

This is the first option many business owners consider. Apple could have made anyone up, right? This should not be a problem at all. Often other people, such as team members, co-founders and family members are involved for feedback. What often proves tricky: the decision. When do you tie the knot and who does this? Which feedback do you take seriously and which do you disregard? Here are eight effective tips for coming up with a unique and catchy company name:

1. Combine words. Use relevant words from your industry and combine them in innovative ways to create an original name. Well-known examples include Microsoft (microcomputer and software), Pinterest (pin and interest) and Snapchat (snap and chat).
2. Alliteration and Rhyme. Use alliteration or rhyme for a memorable and eye-catching company name. Consider, for example, Coca-Cola, Dunkin' Donuts and Bakker Bart.
3. Mythology and literature. Take inspiration from characters, stories or concepts from mythology and literature to create a unique and meaningful name. For example, Nike refers to the Greek goddess of victory, Nikè. In doing so, the sports brand emphasizes associations with success and triumph.
4. Foreign terms. Research words from other languages that relate to your business and use them to create an exotic and intriguing name. Tasmanic is an example of this.
5. Personal touch. Use your own name or the name of a family member or friend to create a personal connection to your business. Just make sure your business name is not misleading.
6. Geographic inspiration. Base your company name on the location of your business or a place important to your business.
7. Anagrams and acronyms. Create an anagram from relevant words or use the first letters of different words to form a unique acronym. For example, the brand name IKEA is composed of the initials of its founder, Ingvar Kamprad (I.K.), and the first letters of the farm and village where he grew up, Elmtaryd and Agunnaryd (E.A.).
8. Collaborative brainstorming. Work with friends, family or colleagues to exchange ideas and generate new, creative business names.

From chaos to structure

During brainstorming, don't let any rules restrict you; they will only hinder your creativity. Let the ideas come and take the freedom to associate. That will undoubtedly give you a lot of ideas, which you then want to structure. For example, you may have a number of names that sound good, but have no meaning. Or a group of names that describe exactly what you do. You can use a mind map to visually summarize all these groups and options. You can make such a mind map the old-fashioned way with pen and paper, but you can also find free mind mapping tools online.

Make a first selection

Time for the next step toward your business name. Coming up with possibilities is not that difficult, but choosing the final name is. Therefore, ask the participants in your brainstorming session to choose some favorites from your mind map. Of course, how many depends on the total number of names, but try to limit this to 5 to 10 company names. You'll see that there are bound to be a number of names that several thought leaders have on their list. You put these together on a so-called shortlist: the final list of contenders.

Thinking advantages for yourself

• Free (if you don't consider the hours of those involved as costs).
• Involvement of different people within organization.

Consider disadvantages yourself

• Domain name may not be available.
• Name was not coined by a brand expert experienced in this process.
• May take a long time because more people participate.

Getting an agency to come up with a business name

This is the option that many companies on a budget choose. By doing so, you place the responsibility of coming up with a good name on a professional. This can often start from several thousand euros, depending on what is provided: positioning document, domain name, corporate identity, etc.

How an advertising agency works

1. Briefing: here you will have to do the work yourself to give direction to the devisees.
2. Brainstorming.
3. Discuss options for direction.
4. Work out options / possibly additional brainstorming.
5. Choice

With an existing organization, it is important to properly document its involvement in the process. Otherwise, you run the risk that the name will lack internal support.

Benefits advertising agency

• Conceived by experts experienced in launching successful brand names.
• Take all wishes regarding the name, brand and product into consideration.

Disadvantages advertising agency

• High cost (often).
• Process takes a long time.
• Less involvement from organization.

Do you want professional support from brand experts who have already launched dozens of successful company names in various industries? Tasmanic has already assisted many companies in finding a good company name. Feel free to contact us to discuss the possibilities.

Choosing your final company name

After the phase of imagining and coming up with possible business names, it's time for the final step, choosing your final name. Your personal preference plays a role in this, of course, but there are 3 more important things to consider:

1. Is the company name itself available? You cannot just choose a company name that is already in use. Therefore, check the Trade Register of the Chamber of Commerce to see if the company name you came up with is not already in use by another company. You can read more about checking a company name here.
2. Is the corresponding NL domain still free? A website is an indispensable part of your business. For Dutch companies, a NL domain that matches the company name is therefore very valuable. Check as soon as possible with the Stichting Internet Domein Registratie whether your domain is still available.

Check the registrations at the Benelux trademark register. If there is already a trademark registered with the same name in the same branches in the Benelux Trademark Register, then it is better to choose another name.

How do you turn your company name into a visually appealing image?

Creating a visually appealing business name begins with choosing a name that fits your business.

If you want to make your company name visually appealing, you can choose a logo that reinforces your company name. A logo is a unique visual representation of your business and it helps your customers recognize your company.

To further visually enhance your company name, you can choose a colorful and eye-catching font. Of course, the font you choose should match your company's corporate identity and brand. The font should be legible so that your company name is easily recognizable.

You can also use a slogan or tagline to make your business name visually appealing. A slogan or tagline is a short phrase that helps your customers recognize your business and gives a brief summary of what your business does.

Resources

Kohli, C., & LaBahn, D. W. (1997). "Creating effective brand names: A study of the naming process." Journal of Advertising Research, 37(1), 67-75.

Aaker, D. A. (1991). Managing Brand Equity: Capitalizing on the Value of a Brand Name. New York: Free Press.

Keller, K. L. (1993). "Conceptualizing, measuring, and managing customer-based brand equity." Journal of Marketing, 57(1), 1-22.

Miller, G. A. (1956). "The magical number seven, plus or minus two: Some limits on our capacity for processing information." Psychological Review, 63(2), 81-97.

Laham, S. M., Koval, P., & Alter, A. L. (2012). "The name-pronunciation effect: Why people like Mr. Smith more than Mr. Colquhoun." Journal of Experimental Social Psychology, 48(3), 752-756