Choosing a business name

[Verve Designs]

We've seen a lot of threads recently about choosing a business name.

Now, I'm sure we all appreciate that this is in important step, and a difficult step too.

But- without knowing the poster, or their business, their personality, their location or particular demographics (geography, age, etc.) it's hard for strangers to give advice.

So, I've done a bit of research (i.e. found some stuff off the internet that makes sense).

Here we go...

Giving the right impression
When choosing your company name, keep in mind that your name will give customers a first impression of your business. You want your business name to convey the right feeling and message. That's whether you're trying to get across professionalism or something fun and different. It should also work across all mediums including your website, marketing and signage.

Consider pronunciation and spelling
Think about how many times you have to give your details over the phone! Now think about your potential business name. Is it easy to pronounce? Will people understand what you're saying? And is it easy to spell? Try to pick something that everyone will easily understand.

Reflect what you do
If appropriate, consider a name that reflects what you do. This will get across very quickly what your business is about to potential customers. It might also help in terms of Search Engine Optimisation (SEO) where you can benefit from having a keyword or two in your own business name. But only do this if your business isn't likely to change and offer different services in future.

Think about the future
Always keep the future in mind when choosing a name for your business. Are you likely to expand? Will you be providing extended services in future? Create a business name that can easily see you through the next 10 years. Don't choose something that's going to narrow your growth. You also have to choose something that won't date easily, so avoid words and phrases that could easily go out of fashion.

Trading and Corporate Names
Did you know you can choose an official 'corporate name' but you can choose a 'trading name' to represent that corporate name? This means you can choose something quite corporate for your actual official name but create a trading name that's creative or shorter and sweeter. You just have to make sure you make your trading name/corporate name clear on all marketing materials, including your website.

Consider potential overseas hurdles
Are you going to be trading overseas? If so, check that your business name doesn't mean anything offensive in any other language. You don't want to limit yourself before you've even started, so double check your company name's meaning in other languages.

Check availability
So you've got a few ideas knocking around - the next important step is checking availability of your name ideas. Go on Companies House Web Checker to see if anyone else has already beaten you to it. And if you're home free, go on something like 123Reg.co.uk to check that relevant domain names are available. When buying domain names, it's wise to buy something that not only has the 'co.uk' available but the '.com' as well.

Names for Sole Traders
If you choose to become a sole trader, you're allowed to operate your business under your own name but you can choose anything you like. But there are some legal aspects to remember. Your business name must not be offensive; include any of the terms for public limited company (PLC) or limited (LTD) or LLP or their Welsh equivalents or contain any sensitive words or expressions (i.e. there are certain words/expressions you're not allowed to use unless you have official permission, for example 'British' and 'Authority').

Next, check that no one else is using your proposed business name. Bear in mind, that if a sole trader at the other end of the UK has the same name, there might not be an issue. But you could run into trouble if another local business or company is using it. In which case, you should choose a different name. How do you check to see if someone's already got your name? Look through phone books, use Google or use the Companies House Web Checker.

Things to consider for Limited Companies
If you're forming a limited company you must register your name and any other relevant details with Companies House. Bear in mind, it's essential your proposed name does not breach any rules on name endings, 'same as' rules or include a prescribed or sensitive work without prior permission. Here's the rules so you don't get stuck. You must ensure that:
• Your name ends with 'limited' or Ltd
• Your name isn't offensive
• Your name isn't the same as anyone else in the index of company names (which you can check via the Companies House website)
• Your name doesn't include anything sensitive in terms of words or expressions... unless you've had official permission to use them.

Double checking trade marks
Another important point is trade marks. You have to make sure your proposed business name isn't the same or very similar to a registered trade mark. Use this handy Business Link Company Name and Trade Mark Checker.

Displaying your business name
Did you know that every business must display its name and relevant details to show customers who they're dealing with? If you're a limited company, you have to display your registered name on all hard copy and digital correspondence and documents. This includes: letters, notices, emails, bills of exchange, invoices and even your website.
But what information must a limited company display? You must show:
• the place of registration and your registered business address
• the registered business number
• whether it's a limited company.
Please note, you'll also have to display your VAT registration number on your own website.
For sole traders, you must display your business name, your own name and your business address in all areas, i.e. across all stationery, correspondence and your own website.

 

[Lynne Baker]

Surely, if you're a sole trader it doesn't matter if someone else is using that name?

 

[Verve Designs]

Surely, if you're a sole trader it doesn't matter if someone else is using that name?

It matters legally if its a registered trademark- but it's not illegal to use a name of someone "local" if its not registered.

Bear in mind, that if a sole trader at the other end of the UK has the same name, there might not be an issue. But you could run into trouble if another local business or company is using it.

If its round the corner from you, it just makes no sense from a business point of view and you could be seen as "passing off" at a push.

It's not illegal- just daft. So people might want to check first

 

[NiCshairstudio]

Surely, if you're a sole trader it doesn't matter if someone else is using that name?

In a business course I did Lynn they advised as a sole trader you can have whatever name you like however, if its the same or similar to another think about what if they're work ethic or reputation is not the best, or alternatively they have a high reputation are a limited company and feel you are ruining their name so therefore sue you, a few have happened round by me, one was a food takeaway called Ken tuckey fried chickens, KFC tried seeing them, and there's another food one near me that won theirs but a large company took them to court too, so I suppose its better both ways just to make sure it's not x

 

[Tomme]

In a business course I did Lynn they advised as a sole trader you can have whatever name you like however, if its the same or similar to another think about what if they're work ethic or reputation is not the best, or alternatively they have a high reputation are a limited company and feel you are ruining their name so therefore sue you, a few have happened round by me, one was a food takeaway called Ken tuckey fried chickens, KFC tried seeing them, and there's another food one near me that won theirs but a large company took them to court too, so I suppose its better both ways just to make sure it's not x

Lol we have a chicken cottage directly opposite a KFC by me, can tell they have had a bit of a struggle as KFC have just bought the empty unit next door and had a full renovation to freshen up, also the question are faster as you pay at point a and collect at point b. although competition is good, I think same names and very close is just silly.
I would be more on the thoughts that I wouldn't want the other to down my rep with their work xoxo

 

[BizGirl]

I'd just add that a business name needs to resonate with your target market and where possible, should reflect a benefit and also if possible, include a keyword/s. A lot to pack into a name but my priority would be to survey clients and potential clients and ask their opinion of your top 2-3 choices.