Naming a Business

In the old days a business name wasn't considered so important. No overpaid creative geniuses were brought in to create a thrilling name like "General Motors."

But, I assure you that since then, GM has paid big money to consulting firms to create names for their brands and vehicles.

A Chicago-based consulting company called NameLab does nothing but come up with product and company names (www.namelab.com). A few of their more well known creations include: Olive Garden, Acura, CompUSA, LUXOR (LV casino), AutoZone.

So, what do they have to say about what makes a good name? They use all types of fancy language to describe their naming strategy. After sorting through it and adding a few thoughts of my own here are my "take-home" points:


1. Names derive much of their meaning from experiences with similar products or services. For example, if is started a website called schmoogle, you would doubtlessly begin forming associations with the search giant. Therefore, you'll want to ensure that similar sounding names/brands carry positive connotations. You'll also want to be careful with associating too closely with another brand, if they ruin their reputation, it could drag your brand down with it. I wouldn't recommend naming an accounting firm anything that starts with "EN" or ends in "RON".

2. Unlike advertising that describes attributes or adjectives of the product, the product name is much more definitive. The name is the "subject" of the sentence. It doesn't just tell us what the product does, it tells us what it is. Therefore, don't pick a name that "describes" your product or company. Instead, let your name be something that can stand on it's own merit. Be inventive, create a brand new word.

3. Function matters. NameLab analyzes a name for its "speech stream visibility", which is the probability that a word will be recognized in a normal spoken stream of English speech. Think "iPod" or "Google" or "Yahoo!" These names all contain distinctive sounds that make them POP in a normal conversation. The same is true for "Notational Visibility", which is the probability that a word will stand out from a typed text, such as a newspaper column. Again, think about the naming convention Apple has used in putting a small letter "i" in front of all their product names. They don't follow conventional capitalization rules. There's a reason it's written as iPod instead of Ipod. "iPod" is far more unusual, hence it's more noticeable and memorable.

Mentors

Starting a business is tough. Many businesses can take 5 years to really get their footing. If you're going to commit several years of your life to building a business, you want to be sure that what you have is viable. Truth is, even if you have a viable model, there are going to be times when you won't believe that it is.

I learned a huge lesson this last week.

GET A MENTOR!

They say the number one reason businesses fail is undercapitalization. I disagree. If entrepreneurs sought qualified advice, they would know that they need more money to pull it off. The real reason for failure is that they think they don't need advice!

This week I contacted an acquaintance whom I didn't know so well. He goes to my church and he's friends with my wife's dad. I've spoken to him a few times and he knew that I was working on some "business related to real estate." All I knew about him was that he started a medical equipment business many years ago that has been very successful.

I wrote him an email. I expressed my frustration with the lack of qualified advice and just asked him if he'd be willing to sit down with me for a few minutes. I wanted to hear about his experiences with getting his business going and get some feedback on what I was doing with mine.

It was one of the most encouraging meetings of my life. He has been where I am. He worked hard and diligently on what seemed to be a worthwhile venture (like I'm doing), and he's now a very successful man with a 20-employee business. In our meeting he did a lot of listening and offered some great insights. He could also relate to the personal and family challenges that come along with making a commitment to starting a business.

We decided to stay in touch and we've been emailing since.

My only regret is that I didn't contact him sooner!

Entrepreneurs are by definition "do-it-your-selfers." However, I'm realizing, that this stubborn "I can do it all myself" attitude is often a hindrance to their own success.

Take the time to seek well-qualified advice. If you ask humbly and graciously many people who have been through it will be happy to help. It's well worth the effort.