You’re thinking of starting a business. Perhaps you already have a name in mind, but how do you know if it is the right type of name for your business? Naming a business or brand can be one of the most important decisions you make. If you get it right, you’ll have a name that is memorable, easy to pronounce and unique, helping your customers easily identify you in a crowded marketplace. If you get if wrong, well it can be a long, time-consuming and expensive process to rename a business.
So what do you do? Well, there is no one-size-fits-all approach to naming a business, as different types of names can work for different businesses. In this article we’ll briefly discuss the seven most popular types of names to consider as you start your business naming journey.
1. Descriptive Names
Descriptive names are straightforward and describe exactly what the business does. Toys R Us, General Motors and Whole Foods are well know examples. The main advantage of a descriptive name is that what your product or service offerings are very clear, making it easy for your customers to understand and remember what you do.
One disadvantage of descriptive names is that they can be a constraint when you are looking to grow and diversify your product and service offerings beyond what your business name implies. Another disadvantage is that, because they use common words or phrases, it can be difficult to secure the domain name for a descriptive name and trademark it.
2. Invented Names
Invented business names are made up names that have no direct meaning. Well known examples include Google, Verizon, Adidas and Xerox. Invented names are popular with startups. Some are derived from a word that is recognizable, such as Shopify and Spotify while others are misspellings of common words, like Lyft and Flickr.
One key advantage of invented names is that they are easier to trademark as there is less chance that your business will be confused with another well-established brand.
A disadvantage of invented names is that they typically require a lot of marketing spend to gain relevance with an audience because they have no meaning.
3. Evocative Names
Evocative business names, such as Apple and Amazon, are real word names that don’t indicate what the business does. They are metaphorical, and are sometimes called metaphorical names.
Evocative names leave lots of room for creating a powerful brand story, however because they are ambiguous, it can be a challenge to connect meaning to them. Like invented brand names, evocative brand names require a higher marketing spend to educate customers about the company’s product or service offerings.
4. Lexical Names
Lexical names can be compound words, phrases, alliterations and puns. They derive their impact from pairing words that taken together, represent the meaning of the brand.
Examples of lexical names are Burger King, Dunkin’ Donuts and Krispy Kreme.
The advantage of lexical names is that they can seem to be cute and playful. The disadvantage of lexical names is that they can seem to be unprofessional.
5. Acronym Names
Acronyms are created by using the first letter of each word in a longer phrase. Examples include IBM (International Business Machines), UPS (United Parcel Service), and NASA (National Aeronautics and Space Administration). Acronyms can be effective if they are easy to remember and pronounce.
A disadvantage of acronym business names is that they tend to date a company to the previous century. Generally, they are also difficult to trademark.
6. Geographical Names
Geographical brand names include the region where the company was started. Examples include American Express, Kentucky Fried Chicken, and American Airlines.
The disadvantage of naming your company after the region it started out in is that you may need to change the name once you outgrow the region.
7. Founder Names
Founder business names are named after their founders. Examples include Ford, Chanel and Disney. Using a founder’s name can add a personal touch to the brand and make it more relatable to customers.
The main disadvantage of naming your brand or business after yourself is that the business will become heavily dependent on your personal reputation.
Final Thoughts
In conclusion, choosing the right name for a business or brand requires careful consideration of the type of name that will best communicate the brand’s message and appeal to its target audience.
Hopefully, through our descriptions of the seven types of business names above, we’ve given you some insight into the thought process you’ll want to undertake when coming up with the name of your business.
Each type has its own strengths and weaknesses. Ultimately, the success of a business or brand is not solely dependent on its name, but a well-chosen name can certainly help it stand out in a crowded marketplace.