Naming your small business

1. How important is choosing the right name and why?

Most companies make the mistake of not putting enough thought into their name when starting a business, which often results in problems and cost issues down the line. For example - realising that the name doesn't work and then having to pay for all the rebranding that will result, like logo, stationery, signage etc.

Go through a checklist of qualities you want the name to represent, define and explain before deciding on the final name. Helpful tips like short names which are easy to say and universal names everyone can understand or relate to are strongly recommended. Abbreviation should be avoided unless it serves a specific strategic purpose.


2. What should the name encapsulate?

As mentioned above, the name should embody your company's image. Here are some other things you should pay attention to - as your company name is the beginning of your brand equity:

If possible, your name should portray your unique selling point (USP) and convey what you do or what industry you are in. Be aware of emotions linked to a company's name and ensure that the name is relevant to and understood by your target market.

All of these things do not need to necessarily be implemented in the company's name - the pay-off line or by-line can be used to effectively communicate a USP or service.


3. What does the process of choosing a name involve?

Firstly, a company should undertake a brand audit to identify what it is that they do, their USP's and their target market. Look closely at your competitors and assess their names and logos.

Consider what your main media will be - if you work within a specialised medium your name could really matter. For example, if you are offering an online service, calling your company “AA Plumbing” will automatically see you placed near the top of any online directory you list in. The same name may, however, be more difficult to use if you want your clients to find your website called www.c2squared.co.za, if you intend using radio or TV advertising.

Your name and logo should immediately explain what the company does. The most effective logos capture the nature of the product or service through a visual graphic and good business name.

It's important that you enlist the services of a good branding agency to help guide you through this process. They will perform all of the analyses detailed above for you and present you with a list of potential names and logos. Remember that a good name may not necessarily translate well into a logo and vice versa. So it's important to consider the creative execution.

Small businesses, in particular, need to hire an agency instead of doing it themselves or finding a cheap solution. A logo needs to be developed with future use and practicality in mind. For example - a full colour logo may look good at signage size but may not work at all when reduced to letterhead or internet size.

Sometimes it is impossible to undo a bad first impression!


4. Where should small business owners be looking for inspiration?

Apart from the mandatories listed above (like target market, services etc) - look at your community and neighbourhood, your industry and the media. Brainstorm! - most agencies will do this for you. Remember - there is no such thing as a bad idea in a brainstorm!

Look at other company logos and images as you drive around - look at billboards, watch television advertisements, read the local newspaper and magazines.

Read books - even children's stroybooks! Surf the web. Really look at everything around you and all the media you consume - the perfect name may be right in front of you.


5. What makes for a bad name? Do any examples spring to mind?

Rather than naming and shaming - I have a few common mistakes to try and avoid!

• A good name and logo is more than simply trying to get attention. It is something that grabs your target audience's attention and is carried through in everything you do - from stationery to TV ads.
• Changing for the sake of change. Too often, in a shaky economy, businesses are quick to change their name or identity. Too much of this confuses your customers and makes them think that you are a “fly by night”.
• Trying to please everyone. Don't try and find a name which everyone likes and relates to! It's impossible! Find one which appeals to your niche market.
• Not truly knowing your company. Analyse yourself and come up with your honest strengths and weaknesses. Don't proclaim to be something you aren't.
• Commit to branding. Often business owners let the marketing and advertising department handle things like "branding" and naming. This is a key decision and all stakeholders need to be involved.
• Your name must translate to a wider audience - don't choose something the MD likes if the target audience doesn't get it!
• Using too much jargon. Business-to-business-based companies are most guilty of piling on the jargon. From benchmark to strategic partnering to value added, jargon does not benefit naming. If anything, it muddles your message.
• Trying too hard to be different. Don't confuse your customers by using too much jargon in your name or pay-off line. Less is more!

6. How would one go about gauging the effectiveness of the name chosen?

If budget allows, any potential names should be run past your target market to gauge acceptance and understanding - this can be done through focus groups or other forms of market testing research.

Otherwise the effectiveness of a name can't be seen overnight. Rather - it's seen as a result of a long-term branding process. Once a name and logo have been decided upon, a Corporate Identity must be laid out and all communication must adher to this CI to ensure that the customer receives a consistent message. Companies who stick to their guns and ensure that their image is synergistically implemented throughout all company elements will reap the benefits in terms of brand awareness and ultimately - sales/profit.


7. Are there naming conventions in particular industries? (e.g. attorneys tend to use their own names.)

The online arena is a great example of the new trend towards weird and wacky! Online companies are choosing names with no relevance whatsoever to their industry or what they do! We don't believe that one should succumb to these trends. We have just recently started an online business. We decided to leverage the existing brand equity which we have in our name - Artifact - and combine it with the new company's core business - online. And so - Artifact Online was born! Simple but effective.


8. Where did the Artifact name come from? Why was this chosen and what does it represent?

Artifact came from the English - Artefact, referring to a handmade ancient relic - something which is crafted lovingly by hand. It depicts our creative process and is juxtaposed with the modern-day computer-generated designs. This was partnered with Advertising to explain what it is we do.

It also helps that our name starts with an A so we appear first in directory listings!


SO: Call the experts! Artifact Advertising specialises in brand creation, awareness and maintenance. Contact us for all your marketing needs - from business cards to logo designs and TV executions - we are as passionate about your business as we are about our own.
Visit www.artifact.co.za or call us on 011 467 6241.