How to pick a Company Name for a Small Business

1. Jobs before you can pick a company name.

Pick your aim first, then pick a name to suit

I’ve heard it countless times.

“I’m starting a business, it’s a new bakery, and I’m calling it Cake-alicious. What do you think of the name?”

My answer? I’ve no idea, as I don’t know what you are trying to achieve with your name. I don’t know the aim, so I cannot judge if I think you’ve hit that aim.

Tempting, I know, to jump in on thinking about names. But, the first piece of advice I always give is to resist. Picking a name should not be the first job when you start a new company.

The first step is to decide who are you talking to, and what do you want to say to them?

Job #1 - Who are you talking to?

Your first job is to decide who you are talking to. Is your bakery aiming to sell sausage sandwiches to truck drivers or overpriced lattes to yummy mummies?

I overly stereotype. But that’s the whole point. Write out your “Client Avatar”, as us marketing nerds like to call it. A caricature of the ideal client.

You need to know who you are talking to, as different people will respond very differently to the same message.

Job #2 - What do you want to say?

Next, you need to decide what your name should convey. Your name will be one of the first, and most important, branding messages your clients see.

• Established and mature, or new and cutting edge?

• Friendly and personal, or formal and precise?

• Fashionable or impervious to fashion?

• Big business or small independent?

These are but a few of countless decisions to be made in deciding what us marketing nerds call your “Brand Voice”. It’s identifying the tone and message that everything the company does should convey.

The famous person trick can be great. Who should be the spokesperson for your business?

For example, we have an Irish Tour Company. For us, our brand voice description is:

A trustworthy and light-hearted chaperone, who has a love of Ireland and the gift of the gab

In other words, Terry Wogan. Every time I write anything for that business, I think ‘how would Terry describe it?’

Job #3 - Shortlist Names

Only now that you’ve decided who you are talking to, and what you want to say, is it time to finally start thinking about a brand name for your new business.

After all, the whole point of a name is to convey a certain message to a certain group of people.

There are a lot more tests your company name needs to pass before it can be selected as “the one”. Don’t set your heart on anything yet. Just start shortlisting.

Once you’ve some options down, that you like the sound of, then you can start checking below to see what you are allowed, along with any pitfalls the name could bring to your fledgling business.

When you have your shortlist options whittled down to those that pass all the tests below, only then will it be time to decide.

2. Is the name available?

There are two main places to check. Firstly, is anyone already using it online? They could be using it as a brand name or as their domain name (i.e. website address). Then there’s the official availability - whether another company in Ireland has already registered that name.

Job #1 - Google the name

Are there any other business in your country trading under that name? If so, they’ll likely to object to you using a similar name.

Even worse, when a customer hears about your great service, they might end up buying from your namesake rival, thinking it’s you.

Don’t worry about companies overseas, as long as you are not planning on trading in their country and vice versa. If there’s a café in Australia already using the name you’ve planned for your café here in Ireland, I’d not be too worried.

Job #2 - How about a domain name?

By domain name I mean your website address, SquareFish.ie in our case. Can you get a decent-sounding domain name? Or, will you have to add 3 hyphens and extra words to find one that’s available?

Your domain name needs to be clearly you, or else you risk just giving your clients to your rivals.

johnsplumbingcompany.com is gone, so you buy johns-plumbing-company.com. What happens? Everyone who hears about your great business ends up on the website of your great rival.

You can check domain name availability at https://www.letshost.ie

If the domain name is already gone, it might be back to the drawing board.

Job #3 - Is it officially allowed?

The Company’s Registration Office (CRO) has rules for what’s acceptable as a company name in Ireland. From their website:

The CRO may have to refuse a name, if it…

• is identical or similar to a name already appearing on the register of companies.

• is offensive.

• would suggest state sponsorship.

You can check the names of all companies registered in Ireland on the CRO’s website, and you can check the names of UK registered companies on the Company’s House Website.

Let’s look at the “similar to” part for a second.

As a rule of thumb, adding a letter or two (for example, pluralising someone else’s name) or using an abbreviation of their name is considered too similar. But, adding extra words can be enough of a differentiation.

For example, have a look at these companies which are all currently registered in Ireland:

• MECH & TECH (MULLINGAR) LIMITED

• MECH-TECH HOLDINGS LIMITED

• MECH -TECH INNOVATION LIMITED

• MECH-TECH MARINE SERVICES LIMITED

• TECH-MECH ENGINEERING LIMITED

• T-MECH ENGINEERING LIMITED

No one company gets exclusive rights to everything containing “Mech Tech”. Variants that are pretty similar are acceptable to the CRO. Whether you want to risk customers getting confused between you and a rival is a whole other question though.

The full details are on the CRO’s page on rules for acceptable Company Names in Ireland, and if you are looking to form a new company in the UK, the official rules for Company Names in the UK are here.

3. Eleven tests you should run before selecting your company name

So far so good. Your shortlist of names conveys the right message to your target market. They are all available, too.

Here are the 11 tests we always run when finally selecting a new business’ brand name.

Test #1 - Does it sound as good as it looks?

Does it sound nice as well as look nice? It’s easy to do all the planning on paper without ever saying your new business name out loud.

You & your team will say this name countless times to countless people, so it needs to be as nice on the ear as it is on paper.

Test #2 - Do you have to explain or spell it?

“Innov8, like Innovate but with the number eight at the end. No, not an extra 8, it’s the number instead of the ‘ate’ part… “ argh!

You won’t always be there to explain your name. Made up or foreign words, clever combinations of words and numbers and the like can all lead to confusion. And a confused customer finds your rival, not you.

If your mum cannot tell your uncle the name without explaining, then it’s too complicated.

Test #3 - Is it “clever” or have a pun in?

I don’t know who decided that hair salons should have a joke in their name, but I’m not sure that I agree with them. “A Cut Above” or even the cigarette-themed “Silk Cuts” just says to me that the owner likes the sound of their own jokes.

Generally, these comedic names have negative connotations that you do not want. Whilst being admittedly very witty, the pancake shop called “I feel like Crêpe” makes their clients think about being sick just before trying to sell them some food. Probably not one of the aims they had down on their brand voice list.

Test #4 - Does it lend itself to great visuals?

Your name will be intrinsically linked to your logo. Some names are wonderfully visual, and allow you to create a vivid and impactful logo to match.

Test #5 - Is it too long?

Long names are more forgettable and bring less impact. They can sound more like a description than a brand name.

Also, your clients and staff will not thank you for making them type in long URLs and email addresses every time. Longer means more space for mistakes.

Abbreviations can be a possibility here. The “CIA” sounds better and more like a brand name than “The Central Intelligence Agency”. Though check for uniqueness - unless you’re adding numbers in, then chances of your abbreviation being unique are pretty low.

Test #6 - Is it a misspelling/word combination?

Not always a bad thing, but need to be conscious here of the potential downsides.

Firstly, we have purposeful misspelling - Flickr, Digg, Reddit.

Then there’s adding extra letters, with the current fashion for -o and -ly at the end (think backlinko and bitly)

Also, there’s combining two words, or a “portmanteau” as it’s called. My fantasy bakery, Cake-alicious, for example. On the more famous side, there’s Netflix, and Microsoft (the latter from microprocessor and software).

These can bring uniqueness. They can be wonderfully evocative. And just the concept of misspelling conveys a message of being new, being tech-related, being quirky and eccentric. Maybe that’s on point for your brand.

They work particularly well for large brands when their name becomes part of our everyday lexicon. But you are starting a new business with very different needs. Your word-of-mouth recommendations will go looking for the correct spelling. And with the huge growth of voice search, the likes of Siri and Alexa will correct the spelling and send your potential visitors elsewhere.

Test #7 - Is your personal name involved?

Having your personal name involved can work wonderfully, but ties you to the business success.

The Happy Pear, I think, nailed it. Two identical brothers who have a really well-branded food company. The brand is tied to them and their personalities.

But what if one leaves? What if they want to step back? For a food company, that’s no problem, I’m sure they are not making every product themselves. Ben & Jerry haven’t been making the ice-cream for a long time, after all.

But if you are called “Jenny’s Hair Salon”, then a client might feel short-changed if anyone but Jenny cuts their hair, and selling that business on will be much harder.

Test #8 - Is it scale-able and future-proof?

Location is a big one here. Cork Builders Providers are going to struggle to open a branch in Galway with that name. Also, putting your product list in the name ties your hands from branching out.

There are however good reasons to do both. Locality can be a big motivator for certain target markets, and specificity can indicate expertise. But be aware, you’ll need a new brand to expand beyond.

Test #9 - Is it bold or is it bland?

Bold is good. There’s a lot of noise out there, and anything bland is not going to cut through. Overly descriptive names risk just fading into the background.

Test #10 - Did you go all-in on your target market?

Go all-in on your target market. Pick your niche, and go for it.

No, you cannot be all things to all people. By picking an average “okay for all” name, you risk being 2nd best for everyone.

If in the future you want to expand into a different market, you can create a new brand that really hits the nail on the head, just for them.

Take Eir, for example.

An old, established, stable brand that older generations will trust. Not very hip and trendy though.

So they invented GoMo. A new brand that hits the nail right on the head, just for their new target market.

Toyota did a similar thing when they decided to move into the luxury car market, and the brand name Lexus was born.

Test #11 - Is your gut happy with it?

There’s a huge amount of subjective creativity going on in naming a new startup company, and often your gut instinct will be two steps ahead of your conscious brain.

If your logical brain says ‘yes’, but your gut instinct says ‘no’, it can be well worth heeding your gut. There’ll be spot-on logical reasons why your instincts dislike a name — it’s just that logic can be hidden in your subconscious and take a while to surface.

4. Lacking Inspiration?

Don’t worry, you are not the first person to struggle with that. Thankfully, there are tonnes of resources online to help you.

Pick a business name category first

Business names fall into distinct categories.

For example, some are named after the founder (Disney), some are descriptive (British Airways), some are purposely unrelated to their product (Apple).

Each category brings its own message with it. Just by including a person’s name, it conveys a certain something about the business.

Picking the most appropriate categories can be an easier first decision and a good place to start.

These two articles are a great resource on business name categories and what they say about your business:

https://www.squadhelp.com/blog/business-name-types-with-examples

https://brandmarketingblog.com/articles/branding-definitions/7-types-of-names

Try googling “Business Name Generator”

You’ll find loads of sites that’ll help with inspiration. Put in some keywords, select the name style… and boom, you’ve a screen full of ideas to play with.

I’m yet to find “the one” this way, but it’s a great technique to get the creativity flowing if you are having the business naming equivalent of writer’s block.

Two that I’ve particularly enjoyed playing around with are https://namelix.com and https://novanym.com (the latter offers ready-made names and logos to purchase).

5. Other things you should know before naming a new business

You have to put the company type at the end

It’s a legal requirement to put your company type at the end of your name.

The means including Limited, PLC, DAC, etc.

“Company Name” vs “Business Name”

Your Company Name is the official name that’ll be registered with the CRO.

Optionally, you can also register a different “business name” as well. That’s the “trading as” name you’ll hear on radio adverts.

The “company name” will have the LTD / PLC bit at the end, but the “business name” does not have to.

Sometimes they are similar - 123 Money Ltd. trading as 123.ie.

And sometimes quite different - Dolmen Insurance Brokers Ltd. trading as Motor Trade Insure.

Once you have a business name registered, then you can do things like adding it to your bank account so that clients can send cheques made out to your “business name”.

Be aware that registering a “Business Name” with the CRO doesn’t protect that name in the same way that registering a company name does.

You can reserve a Company Name on CRO’s website

Just found the perfect name and worried someone else will snap it up before you’ve all the paperwork done?

For €25 you can reserve a company name for 28 days on the CRO’s website.

Accountants normally ask for 3 Names

Most accountants will ask you for your top 3 options for a name before doing the paperwork to form a company for you.

It’s not a requirement from the CRO though, just an option to speed the process up if the first name you pick is declined.

6. How to get feedback on a business or company name

Feedback is crucial

Getting feedback is a critical step. Asking friends, colleagues, other business owners, neighbours, random people in cafés… We all view the world through our own very subjective lens, so seeing how other people react to your potential company name is hugely important.

Frame the question to get useful feedback

Here’s an almost pointless question: “What do you think of the name of my new bakery; Cake-alicous”

The other person will have a whole heap of presumptions that may or may not be right.

You need to first explain to them the aims of your name to get valuable feedback.

“Does Cake-alicious sound too flippant to sell to the older market?”

“What price point / quality level does Cake-alicious say to you?”

”Does Cake-alicious sound like a big or small company?”

Now we are getting useful, on-point feedback on whether the name conveys the message it’s supposed to.

It’s not a committee decision

If you want a bland, okay-for-all compromise of a name, ask a committee. This, though, is no time to compromise. It’s time to be bold.

Ask the committee for ideas and feedback. But, making the call should be one person’s decision and without compromise.

Feedback websites

I love this one: https://eatmywords.com/free-name-evaluation-test

You put in your proposed name, and it’ll ask you a pile of questions before scoring your new company name.

It really just poses all the right questions in the right way to make sure you’ve critically thought through the name. Highly recommended.

7. Final Thoughts

Focus on the Aim

You cannot pick a name until the aim of that name is nailed down:

Who are you talking to, and what are you trying to convey?

Pick the aim first, name second.

Only decide when you have to

It’s so tempting to jump ahead to naming. It makes the business seem real, and people almost feel embarrassed to say “we don’t have a name yet” when their friends ask.

But they should not be embarrassed. Rushing into the decision starves your creative subconscious the time to critically rattle around all the ideas.

Don’t lose sleep over it - naming is not as important as you think.

There, I’ve said it. We all like to think we are building the next Coca-Cola brand. But we are not.

For small businesses, getting the perfect name is not as important as many think.

For huge brands, yes, the name is massively influential. But, the needs of a huge brand are very different from that of a small local business.

For a small local business, the name itself is just one small piece of the marketing puzzle—that’s not the be-all or end-all.

A good name is just another feather in the cap towards making a sale, nothing more.

Anyway, you can change and re-brand in the future

Changing your name and brand is not as hard as people think. The effect of a small company’s brand is pretty small in the scheme of your overall marketing. You can change names in the future without destroying everything you’ve built.

Most companies evolve over time, changing products and markets. If that happens to you then changing name is very doable, as is adding on a Business Name (“trading as” name).

If you are worried your name’s not perfect, but it’s time to make that decision, then just think about Nike, Sony & Google. None of those companies started out with those names, and they turned out alright.