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Business Name Tips
Did you know picking a wrong name could damage your brand value?
When you as an entrepreneur begin the process of finding a name for your brand, you may find that certain people believe that brand names are not worth worrying about because they believe there is no tangible value to a startup name.
These people will gladly tell you that they think that names are just frills that are not worth your time and resources.
However, this couldn’t be farther from the truth.
Research has proven that easy, memorable names outperform non-captivating and lackluster names by 33% on the stock market.
Instead of spending all of your time focusing on the direct monetary gain that an effective brand name can bring your company, it is important to consider the inverse.
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How can a weak business name decrease the value of your company in today’s modern global market?
Throughout this article, we will outline just a few of the ways a weak name can damage your brand.
What Is Brand Value of A Company?:
By understanding brand value, you will better understand why a great name can make or break a new online business or even a normal brick and mortar business.
Brand value is typically referred to the worth of a brand financially! How much is your brand worth? If someone was ready to buy out your business, how much would your brand be worth?
What is included in your brand value or valuation as some go by:
- Your Logo
- Any Trademarks
- Brand colors
- Brand Equity
- Brand Identity
- Your Assets
- Loyal Program with your Clients
Here is how a poor name can mess with your brand name:
1// A Poor Name Won’t Set a Solid Brand Foundation
In today’s business world, first impressions matter more than you may think.
Typically, your brand name is the first thing that a potential client or customer will encounter in terms of your brand.
Your brand is comprised by many different factors like your logo, name, mission and values. Essentially, a name will encapsulate your brand’s essence all be rooted in one name.
The name is fundamentally the core identity of your startup.
If it is not strong enough, it will not be able to support your brand and lay the foundation for your success.
2// Fail to Capture Audiences
A name should create a solid connection between you and your target audience while also giving them something to remember about your brand.
For example, one aspect that made Apple the successful company that it is today is because of the name. After all, everyone has experience with apples. It is one of the most common, accessible fruits, and it is a tangible, ordinary object.
Naming a tech giant after an tangible object is unique and interesting, so the name attracts their target audience.
Drive Audiences Away
Offensive names are even riskier than boring names.
If your name is even accidentally offensive to segment of the population, you risk not only failing potential sales from that group, but also from people who support that group of the population.
Audience testing is a quick and easy way to make sure that your name does well with your selected target demographic.
A Forgettable Name = A Forgettable Brand
Even if a customer really wants to remember your name because they had such a great experience with your brand, if it is simple or too difficult to say and spell, they will likely forget it.
When your target audience fails to remember your name, you will get fewer sales from referrals.
For example, Jeff Bezos founded the online book retailer called Cadabra, Earth’s largest bookstore.
It was supposed to be a shortened version of the magic term “abracadabra,” but Bezos soon found that the name was not popular with his target audience.
It was problematic for many people to write and pronounce, and many simply did not pick up on the reference to magic.
Additionally, some people would accidentally hear “cadaver” over the phone or in crowded bars instead of the actual name, Cadabra.
After brainstorming new names with his wife, Bezos made the name change.
He decided on Amazon and it really helped his company take off.
An unforgettable brand name makes for a memorable company.
Ensure that your brand doesn’t fall by the wayside by brainstorming a catchy, memorable name. Check out some of these winning company name suggestions to get a better idea of what names catch your attention the most.
3// Lose Referrals
At the end of the day, your brand name must be attractive and memorable enough that it will set your brand apart from the crowd so that you can be successful.
If you cannot create a solid foundation for your brand with a solid name, you will not only lose out on some potential clients but also the possible referrals you could have gotten from those clients.
Every tiny aspect adds up in the end, and if your name can help you get some extra press coverage or a couple of more referrals, it makes all the difference in the world. An effective business name can actually have a huge impact your business success.
When you as an entrepreneur are coming up with a business name, remember that your name is much more than just a simple word.
It should establish a solid foundation for your business, and it can be a helpful tool in making your business successful.
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Grant Polachek is the Director of Marketing at Inc 500 company Squadhelp.com, the worlds #1 naming platform, with nearly 20,000 customers from the smallest startups across the globe to the largest corporations including Nestle, Philips, Hilton, Pepsi, and AutoNation. Get inspired by exploring these company name suggestions.
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