A Quick Market-Driven Guide to Choosing a ‘Profitable’ Start-Up Name

How to Name a Startup: A Quick Market-Driven Guide to Choosing a ‘Profitable’ Name

Picking a ‘profitable’ name for your start-up is no easy task. If you pick the wrong name you can doom your startup from the beginning. One of the things that set successful startups apart from ones that no one has heard of is an effective name. The last thing you want to do is settle for a terrible name. In this guide, you will learn How To Name A Startup. Here is how you can avoid that fate and choose a ‘profitable’ startup name.

Why the Name of Your Startup Matters

The name of your startup will determine the kind of impression people have of your startup. Research conducted in 2006 by Adam Alter Assistant Professor of Marketing and Psychology at New York University revealed that companies with easy to pronounce names experienced larger post-IPO.  Of course, an effective name isn’t the only thing that determines if your startup will be successful or not.  You must also have a market-tested product that responds to customer pain. But the name does have the ability to affect your profits. Before an investor or client has an idea of the strength and need for your product other factors such as the name of your startup can influence the impression they have of your company.

You must also have a market-tested product that responds to customer pain. But the name does have the ability to affect your profits. Before an investor or client has an idea of the strength and need for your product other factors such as the name of your startup can influence the impression they have of your company. It is definitely worth taking the time needed to come up with an effective and ‘profitable’ startup name. Here is how you can choose an effective and ‘profitable’ name for your startup.

Keep the Name Simple

While it is important to take the time and energy necessary to pick the right name but you don’t want to obsess about it to the point where you pick a complicated name. According to Jonathan Nelson, founder of the startup incubator Hackers/Founders, it is possible to create the right name in as little as 30 minutes.  Nelson claims that many successful startups pick names for their companies that only use one or two-syllable words.

It is important to pick a name that is catchy, easy to say, memorable and will stick in an investor’s head. The right name also says something about you as the founder. The name you pick will represent the type of image you want your company to display. This is valuable because you want a name that potential investors will have a positive reaction to. Pick a name that is easy to remember, short but not vague. If people remember your startup’s name they will remember you.

Keep the Name Practical

The name of your startup also needs to be practical. The name should relate in some way to your industry. There should be a connection between what your company does and what you call it. It also depends on how crowded your industry is. If your industry is crowded don’t take the risk of coming up with a name that is overly complicated and odd. If your industry is crowded it can also make it harder to come up with a name that represents what your company does but isn’t already being used.

To avoid picking a name that is already being used it is a good idea to conduct a thorough search first. You can do this in a few ways. You can first enter the name in any search engine and see what comes up. Searching your state’s corporate name database is another way to find out if the name you want is taken. Your state’s corporate name database will include the names of all LLCs, corporations, and limited partnerships that are registered. If the name is already registered you won’t be able to register it in your state.

Avoiding a Bad Name

A bad name is overly complicated, difficult to remember, and doesn’t represent what your company does. To avoid this don’t use uncommon letters such as “x” or “z”. You want your startup name to roll off the tongue. Using uncommon letters can prevent that from happening. This can make the name difficult to remember. Don’t be a slave to trends either. Copying a name from another startup will just make your company seem bland, boring and unoriginal. While it is a lot easier to pick a bad name it is also more damaging. Picking the right name can be time-consuming and difficult the payoff is well worth it. After all, this will be the name of your company for years to come. Make sure it’s a good one.

More on naming your business can be found here.

For a name availability search or more advice on choosing the right name for your business, contact FL Patel Law today.