QUESTION:
I am about to start a business consultancy service and wanted advice on naming my company. Are there are rules or helpful tips to choosing a successful name?
ANSWER:
Put your feet up and grab a cup of tea, this isn't going to be short answer...
Naming a business is 5% creativity, 40% perspiration and 55% political. In essence you need to find a name that scores well against an exhaustive checklist (which is below). We use the rule of 7 to generate names for our clients, the rule of 7 is 2 lists; the first is 7 types of names and the second is a list of 7 areas to score your names against (qualities of the name). But before we get into that, let's bust some myths about naming brands.
Naming a company is easy
Naming is a rigorous and exhaustive process. Frequently hundreds of names will be thrown in to the mix and reviewed before a final solution is reached, finding one that scores highly in all aspects of the naming quality checklist.
We will do the search ourselves
Various thoughtful techniques must be utilised to analyse the the effectiveness of a name to ensure that its connotations are positive in the markets served.
I will know it when I hear it
People often indicate that they will be able to make a decision based on hearing a name once. This is not true, good names are strategies that need to be examined, tested, sold and proven.
We cannot afford to test the name
Intellectual property lawyers need to conduct extensive searches to ensure that there are not conflicting names and to make record of similar names. It is too large a risk - names need to last over time.
Qualities of a good name:
1) Meaningful
It must communicate the essence of the brand. It supports the image that the company wants to convey.
2) Distinctive
It is unique and easy to remember, pronounce and spell. It is differentiated from the competition.
3) Future-orinted
It positions the company for growth, change and success. It has sustainability and preserves possibilities. It has long legs.
4) Modular
It enables the company to build brand extensions with ease.
5) Protectable
It can be owned and trademarked. A domain is available.
6) Positive
It has positive connotations in the markets served. It has not strong negative connotations.
7) Visual
It lends itself well to graphic presentation in a logo, in text and in brand architecture.
Types of names:
1) Founder
Example: Ralph Lauren
Strength: Easy to protect, unique and distinctive
Weakness: Inextricably tied to a human being
2) Descriptive
Example: Toys 'R Us
Strength: Clearly communicates the intent of the company.
Weakness: Growing diversity and can be difficult to trade mark due to the descriptive nature.
3) Fabrication
Example: Xerox
Strength: Easy to copyright and trademark.
Weakness: Additional cost of educating the market to the intent of the company.
4) Metaphor
Example: Patagonia
Strength: Can often visualise and tell a good story about a company.
Weakness: Few weaknesses
5) Acronym
Example: IBM
Strength: There are no inherent strengths of acronyms.
Weakness: Difficult to remember, difficult to copyright, difficult to communicate the company intent.
6) Magic Spell
Example: Netflix
Strength: Creative, distinctive and protectable (trademark and domains).
Weakness: Can be difficult to pronounce or spell, also can be difficult to recall.
7) Combinations (of the above)
Example: CitiBank
Strength: Often create names that customers and investors can understand.
Weakness: Weakness vary.
Source: Although we would like to claim that we had thought of this, it is actually a published process by Alina Wheeler in 'Designing Brand Identity: An Essential Guide for the Whole Branding Team'. If you are interesting in branding, we highly recommend purchasing her books (by clicking here).