Starting a business is exciting for any entrepreneur, but this is more challenging when you pick a name for your business. A business name represents the object of your business. Choosing a business name is vital to building your brand's identity. It is essential to choose a name that is both distinctive and memorable.

Most people make mistakes in choosing a business name when they look it up for something unique but engaging. This may mislead your targeted audience and create legal trouble in some states. 

If you plan to register your business name, you should focus more on avoiding mistakes before finalizing it. This blog will tell you what mistakes you can avoid when choosing a business name.

What Are Common Mistakes When Picking A Business Name?

You may have a list of names when choosing a business name. But you can’t use all of these when selecting one. Registering a business name is more accessible, but picking a business name should take more care. To ensure you choose a business name that sets you up for success, follow this guide on learning the common mistakes that you should avoid:

1. Choosing a Business Name in Rush 

One of the most common mistakes entrepreneurs make is choosing a business name in a rush, which is not wise. Rushing through the process can lead to regrettable choices. Take the time to brainstorm, research, and carefully evaluate your options. 

2. Choosing a Limited Business Name

When you start your business, you may not know how it will change or grow. While your current business focus is essential or your current offerings might seem fitting, consider your business's potential for future growth and diversification. 

Don't box yourself into a name that won't accommodate future expansion. You should pick a simple business name to call and remember in various languages to take your brand to new markets.

3. Using a Name That Is Too General

By thinking about engagement or diversification of business, you may choose a too-general name. Such as the “Fast Home Solution Service.” This could be a home improvement company, a real estate agency, or a moving company. This doesn’t make a clear sense, creating confusion for future customers.

So, you should avoid using a name that is too general.

4. Choosing a Name That’s “Difficult” To Understand 

At this point, it’s more challenging when you don’t want to limit your business's products or services while not creating confusion about your brands.

For example, choosing “blablagcfesotic” for a company won’t make clear sense. Not many people will remember it or be able to find it online. Then, your customers may go elsewhere if they don’t understand the objectives of your business. Therefore, you shouldn’t pick a name that is too simple or difficult to understand. 

5. Applying Unusual Spellings to Common Words

While creativity is essential, overly abstract or unusual spellings of common words can confuse potential customers. A name that doesn't indicate what your business offers might lead to missed opportunities. Your business name should be easy to spell, which is a great way to start. Fresh Paint, Quick Fix, The Handyman,eBay, etc. are ideal examples. 

6. Practicing Short-Term Trends

If you choose a name based on the hype of the trend, it can become outdated quickly. This can be difficult to remember for your customers after a long time because trends change constantly. 

For example, "ninja" was a popular business trend a few years ago. There were ninja coffee bars, cleaning services, and even marketing agencies. However, "ninja" is no longer as famous as before, and these businesses struggle to maintain their brand identity.

Choose a name with a timeless quality that will remain relevant as market trends evolve.

7. Failing to Test the Name in Online Searches

While choosing a name, you can get so used to a name you like that you don't realize it might be connected to something else. Before carrying out any additional branding or marketing initiatives, you should check the name in search engines to ensure no one else has already used or trademarked it, unless this may cause you to spend lots of money.

8. Not Ensuring Domain Name Availability

When doing online searches to check if others use the business name on search engines, it’s essential to check the availability of the domain name. If you don't plan to start a website immediately, reserve the domain you wish to use to avoid competition. 

Domain names sell fast. What is currently available may not be available tomorrow or next week. It may be worth a minor investment to reserve one or more domain names that match the business names you like.

9. Being Trapped in Alphabet Soup

When print ads and printed directories were the norm, a business name could end up in the alphabet soup. Alphabet soup names are acronyms or abbreviations that are difficult to pronounce or remember. This kind of name can confuse customers, especially if they are unfamiliar with the industry or your business's services. They can limit your branding opportunities. 

You might add too many letters to make it look cool. But you shouldn’t.

10. Words Not to Use in a Business Name

Lastly, registering a business name depends on the jurisdiction where your business will be located or operated. For this reason, you should be careful about words when choosing a business name that goes with the state's standards where your business is formed or operated. Such as;

• For instance, you can’t use “bank, banking, banc” in Delaware. At the same time, it’s more complex in Wyoming. The words “education, school, university, college, bank, banking" are prohibited in a business name. 

• On the other hand, you should avoid “Insurance, Bank, Trust, Engineer, Engineered, Engineering, Professional Engineer, Registered Engineer, Licensed Engineer” while registering the business name in Nevada. 

• You shouldn’t use offensive or racial words or similar names that create confusion with the government agency.

• You should avoid using geographical or generic names that can’t be trademarked and limiting your business's ability to expand in other states.

FAQs

Q: How do I understand Is my business name good?

A: To understand whether you chose the correct name, consult with friends, family, mentors, or fellow entrepreneurs. They might identify aspects you haven't considered or offer suggestions you hadn't thought of. Consider your peers from the consumer's perspective. 

Q: What should I remember when choosing a business name for an LLC?

A: You must form an LLC before choosing a business name. Research the state’s laws and regulations for naming LLCs. If you want to use the name for advertising, you must file a DBA. 

Q: What is a business name generator?

A: A business name generator is a tool that uses random words and industry-specific words to make suggestions for unique, catchy names that you might not have thought of on your own. 

Final Thoughts