Naming your startup is one of the most important steps in your entrepreneurial journey. And that’s because your name creates the first impression anyone will have about your brand, which impacts how potential customers and investors view your company.
Unfortunately, many businesses make costly mistakes when trying to find the perfect name. An example is the Washington Redskins, which, according to the USPTO, is insensitive to Native Americans and were denied a trademark.
Similarly, Wrigley’s brand name Doublemint was deemed ‘not good enough’ in Europe, and the company was denied exclusive rights to the name.
Here at Squadhelp naming agency, we’ve seen countless entrepreneurs repeating the same naming mistakes repeatedly. So, in this article, we’ll cover some of the most common mistakes businesses make when choosing a name and how to avoid them.
Here’s what we’ll explore:
Six Mistakes Unsuspecting Entrepreneurs Make
Finding a name that resonates with your customers and tells a good story is essential to building a powerful brand that would stand the test of time. But to do so, you must avoid making the following errors when naming your business.
1. Translation Mistakes in Other Languages
When finding a name for your brand, it’s crucial to consider how the name will translate into other languages. However, most business owners neglect this crucial test.
This mistake can set your customers off with a wrong first impression of your brand and should be avoided, regardless of whether you plan on running a small business. You cannot tell how large your business will grow tomorrow.
Furthermore, the internet has transformed the business world into a global community. This means that through the web, more people from different regions can access your business, no matter how far it is from them, and trust us when we say bad reputation travels fast.
Hyundai, which manufactured the Kona, is an example of a company that made this naming error. And although this name failed in three different languages, Hyundai isn’t the only car company to make such an error. In the Spanish market, the Mazda Laputa fell victim to the same translation error as La Puta is translated as “the prostitute” in the language.
2. Choosing a Name That’s Too Common
When choosing a name for your business, it’s essential to make sure that the name is unique. You can conduct competitive research to find out if the name, or something similar, is already in use. If the name is too common, it may be difficult for buyers to differentiate your business from other businesses with similar names.
There are several reasons to not use popular names for your business, and one of these is the high chance of the name already being trademarked.
For example, the company “Fruit of the Tomb” was sued for trademark infringement because it was too similar to the famous clothing brand “Fruit of the Loom.” This shows that using names that are too similar to existing ones not only makes you look generic but can also get you into legal issues.
Moreover, the uniqueness of business names gives businesses the feel of innovation and creativity. These characteristics are admirable in companies and can attract more customers.
3. Choosing a Name That Violates Another Person’s Trademark
It’s essential to make sure that the name you choose for your business does not violate another person’s trademark. If you choose a name that’s too similar to another business’s name, you may be sued for trademark infringement.
Choosing a name that infringes on another business’s trademark can result from not correctly researching your name ideas. And you can use the USPTO trademark search to verify if your brand’s name overlaps with another company’s.
Being sued for trademark infringement reflects poorly on your company and can cost you a lot of money in settlements and rebranding.
4. A Name That Doesn’t Have a Matching Domain Name
Having a solid domain name is necessary for any business looking to be successful at its endeavor. Getting a matching domain name is one way to strengthen the effectiveness of your online identity.
When creating a unique name for your business, making sure the name is available as a domain name is critical. Choosing a name that doesn’t have a matching domain name will make it harder for your customers to find your business online.
For example, Google’s parent company, Alphabet, doesn’t own “alphabet.com,” which caused it to lose lots of traffic to the actual owners of the name. To get the most out of their names, other companies like Tesla and Facebook had to retrace their steps and get themselves a matching domain name, no matter how costly.
5. Not Testing Your Name With Your Target Audience
Every great business name’s advantage is its ability to attract and intrigue its target audience. Any brand name that’s too weak to do this has failed.
Before settling on a name for your brand, it’s essential to test the name with your target audience. Running an audience test on the names will lead you to the best name that appeals to your target customers. If the name does not resonate with your target audience, it may be difficult for your business to gain traction.
Remember that if your name isn’t appealing enough to make your audience want to use your product, then your name isn’t good enough.
6. Not Establishing the Appropriate Tone for Your Business and Target Audience
When choosing a name for your business, it’s essential to make sure that the name sets the appropriate tone for your business and target audience. If the name does not match the tone of your business and target audience, it may be difficult for customers to take your business seriously.
A great example was how Krispy Kreme Doughnuts gained traction because its name was playful and matched the fun, relaxing feel of snacking, which appealed to its target audience and fit the business.
Remove Brand Clutter for Deep Connection and Clear Communication
When choosing a name for your business, it’s essential to make the name clear and concise. It’s also important to ensure that the name resonates with your target audience. To do this effectively, it’s best to remove brand clutter and focus on clear communication.
This will help you to make a deep connection with your target audience and ensure that they will remember your brand.
Conclusion
Choosing the perfect name for your business is essential to its success. So, it’s crucial to ensure that your name is unique, does not violate another person’s trademark, has a matching domain name, sets the appropriate tone for your business, and resonates with your target audience.
By avoiding these common mistakes and focusing on clear communication, you can find a perfect name for your business.
Grant Polachek is the head of branding at Squadhelp, a 3X Inc. 5000 firm that creates distinct brand names for Fortune 500 companies and startups. As the leading naming agency, we extensively analyzed over a million names and created a complete list of memorable business and domain names any entrepreneur can use.
