It is surprising why most business planners and advisers take so little time and effort in creating a sound name for their businesses. The name of the business matters and it matters a lot. In fact, a large number of business experts agree that the company’s name is an intangible asset requiring various business name ideas before finalization of the actual business name.
When you say asset in the business world, it means something that contributes to the earnings, margins, profits, market value, book value and more. How come a simple name can be a part of the monetary values of a company? This is because according to studies, investors and consumers perceive the name of the business as the forthright image that a business projects.
Whether the company name is good or not, it is the foremost thing that people remember and not its products and services or the good things it did to the community. Over time, as the company continues to exists, the name of the company starts to be a brand name. This means that the company name is a potential for branding. When it is already a brand it means it has already marked its territory in the market.
Take for example Coca-cola. Interbrand, a company that evaluates the worth of brands, estimated in 2001 that 61% of the soft drink giant’s market coverage can be credited to its brand’s worth alone. This proves that the name, an intangible asset, can even exceed the tangible assets. Thus, a new company must not overlook this fact.
It is hard for new companies and businesses right now to create a name because of the fast growth of information technology. The “in” thing today may be gone tomorrow. But this should not be reason for dismay. Basically, a new company must ask its self when selecting a name if it’s brand-able.
Then consider also the memory retention of the name. Busy consumers and investors use short term memories when they shop. Don’t make the mistake of naming your business the most bizarre name on the face of the earth in an attempt to be unique. But yes, the name has to be unique. You cannot operate legally when your name already exists in the market.
Moreover, business names must not imply double meanings with negative connotation. It must suggest something about the company and not otherwise, which only causes confusion.
Naming the business is as important as the business. A good company name generator can be of much help for companies who are faced with naming a business dilemma.
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