Kelabi Business

Why is it so difficult (and so important) to choose a good name for a company? | Economy

Names are important in business, so choosing a good name is vital for startups that want to stand out from the crowd.

Although William Shakespeare wrote that “a rose with another name smells the same sweet”, it would clearly not be a good idea to call a new online flower delivery service. espinasrancias.com.

Names are important in business, so choosing a good name is vital for startups that want to stand out from the crowd and connect with customers.

Our world is moving more and more online.

The new company needs a name that will also serve as a domain on the Internet. In addition, it is not enough to provide a good product or service: buyers must also be able to Find it, and more, remember it.

The pandemic has added more pressure to the issue of coming up with a name with these characteristics, as the number of new companies has risen since March of last year.

In the UK, a study revealed that 835,494 new companies They are registered until January 2021. This number is 41% higher than the number recorded in the previous year.

For its part, the United States established 4.4 million companies last year, 24% more than in 2019.

That’s a lot of new business names being traded, and growth on both sides of the Atlantic has fueled new e-commerce business in response to Lots of people are shopping online.

Help find the right name

In order to help entrepreneurs who are struggling to find a good name, a number of websites have appeared that allow them even to register a related domain. Among them Alter, BrandBucket, Frozen Lemon, Wix y Zyro.

“Demand for company names has soared (in light of the pandemic) as entrepreneurs have sat down to think, ‘What do we do now,’” says Devin Patel, founder of Alter.

Alter has registered thousands of commercial domain names that startups can buy. Photo: age

Patel believes that these entrepreneurs see the challenges that mainstream companies face and “know that.” Can do relatively more online. This is the reason for most startups [que se lanzan] Now they are online.”

But then you have to stand out. Online consumers see 100 companies selling the same thing, but In a good name, distinguish yourselfAnd that now gives you a lot more advantage than in the past.”

The Alter website starts by asking the user to type in a word related to the type of work they want to create. It then presents a series of suggestions already on file and indicates the cost of their purchase.

For example, if you type ‘wine’, it gives you 10 options, including searchwine.com for $2,099.

However, many companies continue to innovate The names of their novels.

This is what the founders of the Norwegian biotech company did clixbeo.

The “bio” part of the name is an obvious choice for a biotech company, while “clex” refers to the technology it has developed in the field of human tissue engineering.

CEO and co-founder Armend Hati said they want the name to be appropriate.

“We thought it would interest investors and allow us to show ourselves as a life sciences company,” he says.

Armand Hatti and his associates came up with the name of their company themselves. Photo: Clexbio

The strategy appears to be working. The company has achieved recognition From its name, at least in its sector.

“Yes, that was the result and our online presence, especially our LinkedIn presence, I think established us as a player in this sector,” says the director.

but What if you come up with a name whose domain someone already owns?

It can be quite expensive, just like I’ve tried it Elon MuskChairman of the electric car maker Tesla.

Musk revealed in a 2018 tweet that the company had to pay 11 million US dollarsto buy the site tesla.com To a Californian named Stuart Grossman.

Before that Tesla had to settle down teslammotors.com.

If you think you have a great domain name for a business and you register it, companies like Alter might try to sell it to you.

However, do not attempt to register a potentially offensive business name, as it may be rejected by authorities such as the UK Business Register.

Another is the process of those who decide Change the name they already have.

Simona Botti, Professor of Marketing at London Business School, says this is a program risky move, something Scottish investment firm Abrdn might agree to… reluctantly.

In April, the company announced that it would change its name to Abrdn, in place of the previous Standard Life Aberdeen, a fact that has been the subject of a large number of… Teasing on social media.

Abrdn, who developed his new name with the help of marketing agency Wolff Olins, said he should continue to declare himself “Aberdeen”, but that rebranding would make it “modern” and “dynamic”.

Standard Life Aberdeen wanted something more “modern”. Photo: GETTY IMAGES
Photo: ABRDN

Professor Botti says there Two ways for a company to change its name.

“It could be done in a very scientific way, with a combination of researchers and experiments and tests, to find out which names people interact with best,” he explains.

This is the case of the Canadian technology company Black Berry Until 2013, it was known as Research in Motion. “They did a lot of research to see how people would react to this new name,” says Professor Botti.

However, while the public was pleased that BlackBerry adopted the name of its most popular product – the BlackBerry mobile phone -, This did not help increase sales. Mobile phones from Apple and Android have continued to outperform them.

Companies that changed their name

  • The global chain of Subway sandwich shops was called Pete’s Super Submarines for its first two years, from 1965 to 1967.
  • Facebook was initially Thefacebook
  • In 2018, Weight Watchers changed its name to WW
  • In the same year Walmart removed the text to become Walmart
  • Pepsi was originally called Brad Drink
  • The automaker Nissan was formerly Datsun
  • Ebay was first known as AuctionWeb

The other way Putty cites it is simply that company “Let yourself be carried away by her core and her gut”.

“So this new name becomes an almost empty container and what matters is what is put into that name.”

Choosing a good business name is harder than most people think, says Branding Expert Rebecca Bateman, founder of RBL Agency.

Rebecca Bateman knows that choosing a good business name is not easy. Photo: Rebecca Bateman

Few people really understand how hard it is to find or create an easy name In other words, it’s easy to spell, that makes sense, conveys character, is protective, supports a strong domain name and can grow with the business as its strategy evolves,” he explains.

According to Batman, when it comes to domain names, it’s best to have “.With”.

“Although a .com domain isn’t always necessary, it does make things easier in the long run,” he says. “It smells of universal power, and it definitely deserves more work.” (F)