How to Choose the Best Name for a Business: Company Formation 101

How to Choose the Best Name for a Business

How to Choose the Best Name for a Business: Company Formation 101

Thinking about how name your business? This lesson: How to Choose the Best Name for a Business will show you everything you need to know.

 

BUSINESS ORGANIZATIONAL STRUCTURE

 

Lesson Three: How to Choose the Best Name for a Business: Company Formation 101

 

Definitions

Company formation involves all the steps and processes taken towards the establishment of a company.

 

What is a Company?

A company has been defined as: “An association of persons formed for the purpose of an undertaking or business carried on in the name of the association” – L. B. Curzon.

In our previous lesson, we learnt that a Company can be structured in different ways, such as: a sole proprietorship business, partnerships, limited liability company, etc.

 

For purpose of this section,

 

we have two major types of companies:

  • the private companies and
  • the public companies.

 

Every type of company – be it limited by shares, limited by guarantee, or unlimited may be either a private or a public company.

 

Private Company

A private company is a company owned by one or more individuals, and it’s not allowed to transfer its shares to the public as its articles restrict this power.

 

Public Company

The public company in its regards can sell its shares, or transfer its right of ownership to the public as a way to raise funds.

 

The public company is a more ambitious enterprise and can actually be a structure of great economic power. It raises its capital from the general public and in Law its membership is unlimited.

With the concentration of capital and labour in the public company, it can play a far reaching role in the social-economic development of the society…

—  Prof. I. A. Ayua.

 

  

How to Choose the Best Name for a Business

Generally speaking, business name is the first step toward building a strong company identity – one that would last as long as you’re in business.

Changing a business name is a costly and stressful process, especially for established businesses.

Therefore every entrepreneurs or business owners should want a name that stands out from the crowd.

This is because most people would not wish to do things over again, as changing a company name after some times may have a huge impact to the brand.

 

Having a great company name can influence the success of a business.

For instant, company name usually has a tremendous impact on how customers, investors and the public view your business.

In this lesson, we’re going to help advice you against bad name choice and explain the features that make good business names.

 

If you are unsure about the best company name ideas or the name to give your business after reading this section, then Abbakin can help you come up with the right brand name for your kind of business.

Including other identity works like choosing your internet domain name and graphic logo designs patterns.

 

Unique business names come from all kinds of ideas, but often not all that roll through your heads are the best.

Image branding is everything, and this is a deliberate act.

It is important for a company to build reputation that is powerful, attractive and useful to its customers.

Get more info about our Brand Development Services here.

 

 

How to Choose the Best Name for a Business (business name ideas)

Evidence based research showed that some experts believe that the best business names should be informative, relating to the industry – so your customers can know immediately what the business is all about.

Others believe that coined names, such as ones that come from made-up words, are more memorable than names that use real words (e.g. English).

But in reality, a name can be effective if it’s backed by the right marketing strategy.

Below are what you’ll need to consider in order to give your new business the most appropriate and effective name.

 

 

Features of a Good Business Name:

  • First, while there is nothing wrong with using your own name, this may not present a more professional image.
  • A business name should convey the expertise, value and uniqueness of the products or services you have to offer.
  • It should be concise, memorable and be able to communicate and reinforce the key elements or philosophy of your business.
  • The business name should be broad (not too meaningful) in case the company wants to expand or diversify beyond its main product line, location, and etc., in the future.
  • Also consider how your name will look on the web, as part of your logo, and/or on the social media networks as these may affect your brand marketing.

 

How to Choose the Best Name for a Business

 

More Tips on How to Choose the Best Name for a Business

 

Keep in mind that professional business names, brand names and domain names are in high demand worldwide.

Start building your search for the new name immediately once your decisions is made.

Make sure the name you choose is available by checking out your preferred names with the Secretary of State and/or the Department of Corporations in your country.

Choose a name that hasn’t been claimed by others, online and/or offline.

Use web tools and domain name search to check availability of your business names and the domain names online.

It’s a good idea also to claim your social media name early in the naming process, so you’re getting everything right together at first.

 

We hope the above tips will help you make the right choice to your business name.

This guide explains how you can pick a domain name for your business.

 

Read: 6 Steps on How to Start Online Business and Make Money out of It

 

 

Next Lesson: How to register a company in Nigeria: a Step by Step Guide

 

Previous Lesson: 5 Basic Types of Business Organizations every entrepreneur must consider

 

Go Back to Course Preview: Understanding Business Organizational Structure

 

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