| Naming a business can be both fun and frustrating. You might have a great name in mind for your company but find that it is already taken. If so, you'll need to be creative. A name that's catchy or cute could seem fine in the beginning, but these types of names can be misleading. Of course, there are exceptionsAmazon and eBay, for example. Still, if chosen properly, your company name can be a powerful promotional tool in your marketing tool box. Or, if you're not careful, it can create a misleading or even unpleasant image in a potential customer's mind. Keep these things in mind when naming your business: Free Info Download the free informative article titled "The RAF and ROI" at www.myecommercesuccess.com. |
Don't be tempted to make up some odd name. Sure, it worked for Amazon and eBay, but why take the chance of identifying your business with a nom de plume that butchers the English language or leaves consumers scratching their heads over what you sell? Amazon, eBay, and Cingular have names that do not reflect their business, but they have the marketing clout to create name recognition in the consumer's mind. Don't make potential customers see your name and ask, "What in the world does that mean?" Catchy is finecute is not. Remember, you want to project a professional image for your business. Boo.com might be a good name for a Halloween shop, but not an apparel store. (And yes, Boo.com was the name of very large online apparel store that imploded during the dot-com crash.) Be careful of your spelling, too. Is it easy to spell or easy to understand? Does it make sense? For example, Accompany.com was another dot-com business. Imagine this conversation between a sales rep at Accompany and a customer: "This is Accompany calling. "A company? What company?" "Accompany." Tricky spellings are also hard to look up online or in the phone book. This could harm your attempts at getting top placement in Net directories, such as Yahoo!. Don't make the mistake of placing aaa or any As in the front of your name. It might work for taxi companies, but not for consumers trying to remember the name of your online business. Finally, try to keep your name short; it's easier to remember. You're running an online business, not a law firm. Name yourself for growth. That unique selling position you have honed down to a very specific market and product might not make a very good business name. For example, the name Joe's Music Store would limit business. Some day, Joe might want to add videos, DVDs, and e-books to his product line. Joe's Entertainment Outlet might be a better name to start with. Make your business name open-ended and flexible for growth. Also, stay away from trendy names. Tie-dyed T-shirts might be making a comeback, but it would be better to name your T-shirt store Al's T-Shirts than Al's Groovy Sixties T-Shirts. Make sure your name is available. The best place to find out is through your state government. Find the department or agency that handles trade names, such as the (state) Corporate Commission, and do a search on the business name you want to see if it's available. The name will have to be available if you want to open a business account under it. Also, check the Internet. Do a search on Google.com using the name you chose, and see what search results come up.
Licenses and Permits Your next step is to get legal. After you have chosen your name, it's time to look into permits and licensing. Find out if you can even have a business. If you will run your business from your home, do any rules or restrictions in your community will prevent it? These are called CC&Rs (covenants, conditions, and restrictions). You also need to find out about zoning laws. Your city and state will probably require you to get a business license. You will need to fill out their forms detailing the type of business you are, where the business is located, who is running it, and more. If you plan to sell retail items, you'll also have to get a seller's permit, sometimes called a transaction privilege license. After all, the state, county, and city want their sales taxes, and you have to collect them. Finally, set up your DBA, which stands for "doing business as." This is your official and public registration of a business name. It enables you to conduct business under a name other than or in addition to your company's legal name. The business can be a sole proprietorship, partnership, corporation, or limited liability company (LLC). If you have multiple businesses, you can also create multiple DBAs under the same entity. Banks will also require you to file a fictitious business name before you can open a bank account to deposit checks under that name. Warning: Get That DBA Getting a DBA (doing business as) is not a bad idea. Why? It protects the name of the business that you chose. Your business could be sailing along nicely without a DBA when some other businesses decide to use it. If you haven't filed for a DBA and they did, you could be forced to change your name. That can get expensive and become a detriment to the business you already have built.
|
