How To Choose The Name Of Your Company

Filed in archive Consultancy on April 28, 2010

As you start a company, eventually you're going to have to select a company name. You may not take the decision that seriously - but believe me, a great name can make all the difference.

Since the online marketplace becomes increasingly cluttered it's more important than ever to be memorable and to stand out. The name of your company is a vital factor in this.

In the following article I'll describe a process you'll be able to use to discover and choose a good name for your company; this method can be used to product and service names too. Okay, let's get started!



The Critical Steps to Create A Good Company Name:

Step I: Set Your Constraints:

So what makes a good name? There are 5 main characteristics:

1. It is easy to remember
2. It is easy to spell and needs no explanation
3. It describes your business category
4. It describes your benefit
5. It describes your difference

Here are 3 more constraints that I like:

1. It has to be one or two syllables long - no longer
2. Each syllable begins with a strong consonant (B, C, D, G, K, P, Q, T)
3. It's fun to say ("…that simply rolls off the tongue")

You can of course add to or remove from this list as you see fit. The most significant thing in trying to name your company is to pick a list of constraints and then to ruthlessly stick to it.

Examples of great company names are:

* PayPal
* Best Buy
* QuickBooks

Step II: Schedule Your Time:

Choosing a name is a process. Sure, sometimes a great name will just fall in your lap, but more often it will take time to "discover" one. You need to make time.

1. Make a 'Naming Team' - 3 or 4 folks who are responsible for meeting on a regular basis until they've found your name. Expect it to take 8 to decade sessions of one hour each. That's about 30-40 hours of your organization's time. It will be painful but it will be worth it.

2. Get the tools you need:
* Thesaurus
* Dictionary
* Pads of paper and pens because everyone who is not on a laptop recording words ought to be keeping their own notes with their own ideas. You'll be able to consolidate at the end.
* Spreadsheet
* Using a laptop with access to the web to check if the URL was available became invaluable. Go Daddy offers a plug in for Firefox that might come in handy.

3. Identify a 'secretary' to keep everything organized.

Step III: Structured Brain Storming

Now that you've done the preparation work and have everyone in the same room, here is a framework to brainstorm with:

Don't try to find your name at once - try to find your words one at a time. Chances are your brand name will be 2 words, and finding those two best words is the real challenge. So break the problem down and brainstorm for individual words in the following buckets:

1. Words that describe your product category
2. Words that describe the differences between your product versus your competition's
3. Words that describe the benefits of using your product

To keep things focused and manageable, try to spend each of your first three sessions focused on one of these buckets. Inevitably, you and your naming team will begin to connect the words you come up with to form alluring combinations. That's totally natural, but try to stay disciplined because this really is an exercise that warrants follow-through.

Use the columns in the spreadsheet to guide you. You'll need 50-100 words per column. Remember: be ruthless. In my opinion, single syllable words beginning with hard consonants are the best. They're hard to find. Hang in there.
Rinse. Repeat. Expect it to take eight to ten sessions.

Step IV: Got a Name You Like? Sleep On It

Once you have a name you like, sleep on it. We used to start every session with the question, "what was the name you remembered when you woke up this morning?" Invariably we would all agree on that one name and have a new front-runner that we all liked. That said, invariably this new best name wouldn't satisfy ALL our constraints so we would cast it aside and press on.

To be successful with this procedure you have to be straight to your constraints. Absolutely committed. Every constraint you break will only dilute the quality of your name. This is one time not to be easy on yourself. Be hard and unrelenting. Be ruthless.

Step V: Once You Have Your Name - Test It

If you invest enough into this process, you'll know a good name when you hear it. If it satisfies all of your constraints you'll certainly have a great name. Even so, you do have to test it with your customers - your audience. Make a few phone calls, run a survey, post the name on a forum and see what people think. Whatever you do, get some feedback from target customers outside your organization.
The Truth About How We Wound Up selecting Our Name

As the process evolves you may find you like some words more than others. Some days, the exercise follows you around. It wakes you up, keeps you up and drives you nuts. Sooner or later some words will cut through.

A Quick Word Regarding Domain Names

If you are a web company, personally I believe you have to own the .com domain. Make it another constraint. If you can't get the .com, find a different name. I know there are those that suggest otherwise, but requiring the .com domain name is just another constraint at the end of the day, and if your business is online, you don't want to explain how to get to your URL. You just want someone to be able to hear your company name and go there.

You may have to spend money to purchase your domain name. We bought ours for several thousand dollars. Although I would not have paid a cent more (literally the cost was at our uppermost limit), our domain name and new brand have made the investment worthwhile.

When trying to find a name, and words that describe what your company is trying to do, you'll find that your brain works overtime. Every word you read will be a candidate, every word you hear will have new potential, but only by adopting this process or something like it will you be able to recognize a great word/name when you hear it.

So is it worth taking the time to find a good name? You bet. Good luck with your naming - if you invest in the process you won't regret it.