Posts Tagged ‘Name’

Successful Entrepreneurship: It’s All in a Name

Running a business comes with its share of problems, in terms of both mechanics and aesthetics. In my experience, one of the most important challenges every entrepreneur faces is the naming or re-naming of a company. I’ve been involved in the creation of more than a dozen companies, and I have had the privilege of advising on the development of hundreds of others. Here are some of the lessons I learned when it comes to picking a name that will garner success, now and in the future:

Easy-to-Remember Names

Names that are easy to remember are a sure-fire way to increase advertising effectiveness. These kinds of names are easy to pronounce and often have a visual component (think Target and Duracell). The difficulty, though, is that they can be tough to trademark. Also, the specificity of easy-to-remember names can limit a business to a particular region or industry. The perk of these names, however, is their high spend-to-result ratio. If an entrepreneur picks a highly memorable name, he or she can spend relatively little and still net huge results in short working less and making more.

Trademarking That Works

By choosing a name that is easy to trademark, entrepreneurs can ensure that they will have a strong legal claim to their business identity. These kinds of names are often "made-up" words like Novartis, Accenture or ZymoGenetics. Other protectable names are based on unique proper nouns, such as Phillip Morris or Martha Stewart. One drawback of easy-to-trademark names is that they can be confusing. Also, entrepreneurs who choose these names can expect to spend more money on advertising to help customers recognize the name and understand the business behind it. This leaves entrepreneurs with a lower spend-to-result ratio.

Nonsense Names

Some companies have reaped great benefits from names that are both familiar enough to be memorable, but distinctive enough that they’re relatively easy to trademark. These are often called nonsense names. Some nonsense names—Apple, Amazon and Yahoo—combine a known word with an unexpected industry. Other nonsense names combine two familiar words people find easy to pronounce and envision, but meet the uniqueness criterion for trade-marking because you wouldn’t expect to see the two words used together. An example of this is Yogabutter (a local yoga studio) and Talking Rain (a soft drinks pioneer). I experimented with this nonsense approach by creating Purespace, a business that did short-term space rental for holistic practitioners. The name provided customers with a sense of our business, and it bred inquiry.

Testing the Name

I’ve learned that the worth of a business name is in the reaction of the customer or trademark attorney. To determine if their name has long-lasting appeal, entrepreneurs should find out if it allows them to access the tools they need for business. One way to do that is to Google the name. Business owners should ensure that someone isn’t already using the name—or something similar—in a way they wouldn’t want associated with their own business. This could cause confusion and lead to potential legal problems. When in doubt, it’s best to consult with an intellectual property attorney.

A carefully selected business name can save thousands of dollars a year in advertising costs, and it can keep the company on an extended path of greatness. The wrong name can sink a business by making marketing expensive and frustrating, or making it difficult to protect your business identity. When it comes to naming a business, you can never be too careful. After all, your success and future are on the line.

Log on to http://www.chrisrugh.com/ for more information!

Christopher Rugh ,EO Seattle

A serial entrepreneur, Christopher is the founder and CEO of several companies, including 1-800-Good Credit, Worldwide Telegraph and CustomTollfree.com. He has
been an EO member since 2001. You can reach Christopher at cmb@customtollfree.com.

Read the rest of this entry »

The Pros and Cons of Corporate Entrepreneurship

There are two kinds of entrepreneurs. First, there is the entrepreneur that is commonly associated with the noun; this person is the start-up business expert. They are the ones that take dirt and make a castle out of it. However, there is another type of entrepreneur and he or she comes in the form of a corporate business starter. That means that he or she has an expertise in growing and starting up different sections within a corporation. For any company, having an effective entrepreneurial thinker can prove to be an immense asset.

Read the rest of this entry »
Advertising

Enter your email address:

Delivered by FeedBurner

Links
Alexa rank

Alexa rank is unknown.

PHP/MySQL Components, WordPress Plugins, and Technology Opinions at TravisWeston.com