The Ultimate Guide to Naming Your Business What's in a biz name? Plenty. It must get you noticed and build your brand. Here's how to choose one that works.

What's in a name? A lot, when it comes to small-businesssuccess. The right name can make your company the talk of the town;the wrong one can doom it to obscurity and failure. If you'resmart, you'll put just as much effort into naming your businessas you did into coming up with your idea, writing your businessplan and selecting a market and location. Ideally, your name shouldconvey the expertise, value and uniqueness of the product orservice you've developed.

There's a lot of controversy over what makes a good businessname. Some experts believe that the best names are abstract, ablank slate upon which to create an image. Others think that namesshould be informative, so customers know immediately what yourbusiness is. Some believe that coined names (names that come frommade-up words) are more memorable than names that use real words.Others think most coined names are eminently forgettable. Inreality, any type of name can be effective if it's backed bythe appropriate marketing strategy.

Do It Yourself?

Given all the considerations that go into a good company name,shouldn't you consult an expert, especially if you're in afield in which your company name will be visible and may influencethe success of your business? And isn't it easier to enlist thehelp of a naming professional?

Yes. Just as an accountant will do a better job with your taxesand an ad agency will do a better job with your ad campaign, anaming firm will be more adept at naming your firm than you will.Naming firms have elaborate systems for creating new names, andthey know their way around the trademark laws. They have theexpertise to advise you against bad name choices and explain whyothers are good. A name consultant will take this perplexing taskoff your hands--and do a fabulous job for you in the process.

The downside is cost. A professional naming firm may chargeanywhere from a few thousand dollars to $35,000 or more to developa name. The benefit, however, is that spending this money now cansave you money in the end. Professional namers may be able to finda better name--one that is so recognizable and memorable, it willcut down your costs in the long run. They have the expertise tohelp you avoid legal hassles with trademarks andregistration--problems that can cost you plenty if you end upchoosing a name that already belongs to someone else. And they arefamiliar with design elements, such as how a potential name mightwork on a sign or stationery.

If you can spare the money from your startup budget,professional help could be a solid investment. After all, the nameyou choose now will affect your marketing plans for the duration ofyour business. If you're like most small-business owners,though, the responsibility for thinking up a name will be all yourown. The good news: By following the same basic steps professionalnamers use, you can come up with a meaningful moniker that works .. . without breaking the bank.

What Does It Mean?

Start by deciding what you want your name to communicate. To bemost effective, your company name should reinforce the key elementsof your business.

Gerald Lewis, whose consulting firm, CDI Designs, specializes inhelping retail food businesses, uses retail as an example. "Inretailing," Lewis explains, "the market is so segmentedthat [a name must] convey very quickly what the customer is goingafter. For example, if it's a warehouse store, it has to conveythat impression. If it's an upscale store selling high-qualityfoods, it has to convey that impression. The name combined with thelogo is very important in doing that." So the first and mostimportant step in choosing a name is deciding what your businessis.

Should your name be meaningful? Most experts say yes. The moreyour name communicates to consumers, the less effort you must exertto explain it. Alan Siegel, chairman and CEO of Siegel & Gale,an international communications firm, believes name developersshould give priority to real words or combinations of words overfabricated words. He explains that people prefer words they canrelate to and understand. That's why professional namersuniversally condemn strings of numbers or initials as a bad choice.On the other hand, it is possible for a name to be too meaningful.Naming consultant S.B. Master cautions business owners need tobeware of names that are too narrowly defined. Common pitfalls aregeographic names or generic names. Take the name "San PabloDisk Drives" as a hypothetical example. What if the companywants to expand beyond the city of San Pablo, California? Whatmeaning will that name have for consumers in Chicago or Pittsburgh?And what if the company diversifies beyond disk drives intosoftware or computer instruction manuals?

Specific names make sense if you intend to stay in a narrowniche forever. If you have any ambitions of growing or expanding,however, you should find a name that is broad enough to accommodateyour growth. How can a name be both meaningful and broad? Mastermakes a distinction between descriptive names (like San Pablo DiskDrives) and suggestive names. Descriptive names tell somethingconcrete about a business--what it does, where it's located andso on. Suggestive names are more abstract. They focus on what thebusiness is about. Would you like to convey quality? Convenience?Novelty? These are the kinds of qualities that a suggestive namecan express.

For example, Master came up with the name "Italiatour"to help promote package tours to Italy. Though it's not a realword, the name "Italiatour" is meaningful. Right away,you recognize what's being offered. But even better, the name"Italiatour" evokes the excitement of foreign travel."It would have been a very different name if we had called it'Italytour,'" says Master. "But we took aforeign word, 'Italia,' but one that was very familiarand emotional and exciting to English speakers, and combined itwith the English word 'tour.' It's easy to say,it's unique, it's unintimidating, but it still has anItalian flavor."

Before you start thinking up names for your new business, try todefine the qualities that you want your business to be identifiedwith. If you're starting a hearth-baked bread shop, forexample, you might want a name that conveys freshness, warmth, anda homespun atmosphere. Immediately, you can see that names like"Kathy's Bread Shop" or "Arlington Breads"would communicate none of these qualities. But consider the name"Open Hearth Breads." The bread sounds homemade, hot, andjust out of the oven. Moreover, if you diversified your productline, you could alter the name to "Open Hearth Bakery."This change would enable you to hold onto your suggestive namewithout totally mystifying your established clientele.

Brainstorming Business Names

Begin brainstorming business names, looking in dictionaries,books and magazines to generate ideas. Get friends and relatives tohelp if you like; the more minds, the merrier. Think of as manyworkable names as you can during this creative phase. Professionalnaming firms start out with a raw base of 800 to 1,000 names andwork from there. You probably don't have time to think of thatmany, but try to come up with at least 10 names that you feel goodabout. By the time you examine them from all angles, you'lleliminate at least half.

The trials you put your names through will vary depending onyour concerns. Some considerations are fairly universal. Forinstance, your name should be easy to pronounce, especially if youplan to rely heavily on print ads or signs. If people can'tpronounce your name, they will avoid saying it. It's thatsimple. And nothing could be more counterproductive to a youngcompany than to strangle its potential for word-of-mouthadvertising.

Other considerations depend on more individual factors. Forinstance, if you're thinking about marketing your businessglobally or if you're located in a multilingual area, youshould make sure that your new name has no negative connotations inother languages. On another note, Master points out, if yourprimary means of advertising will be in the telephone directory,you might favor names that are closer to the beginning of thealphabet. Finally, make sure that your name is in no wayembarrassing. Put on the mind of a child and tinker with theletters a little. If none of your doodlings make you snicker,it's probably OK.

Chuck Brymer, president of naming firm Interbrand U.S.A.,advises name seekers to take a close look at their competition."The major function of a name is to distinguish your businessfrom others," Brymer observes. "You have to weighwho's out there already, what type of branding approaches theyhave taken, and how you can use a name to separateyourself."

Making Up a Name

At a time when almost every existing word in the language hasbeen trademarked, the option of coining a name is becoming morepopular. Perhaps the best coined names come from professionalnaming firms. Some examples are Acura, a division of Honda MotorCo. coined by NameLab, and Flixx, a name CDI coined for a chain ofvideo rental stores.

Since the beginnings of NameLab, founder Ira Bachrach has been aparticular champion of the coined name. He believes that properlyformulated coined names can be even more meaningful than existingwords. Take, for example, the name "Acura." Although ithas no dictionary definition, it actually suggests precisionengineering, just as the company intended. How can that be?Bachrach and his staff created the name "Acura" from"acu," a word segment that means "precise" inmany languages. By working with meaningful word segments (whatlinguists call morphemes) like "acu," Bachrachclaims to produce new words that are both meaningful andunique.

"One of the reasons a new company is formed is that it hasnew value; it has a new idea," Bachrach contends. "If youadopt a conventional word, it's hard to express the newness ofyour idea. But as long as it's comprehensible, a new word willexpress that newness." Bachrach also admits, however, that newwords aren't always the best solution. A new word is complexand implies that the service or product you're offering iscomplex, which may not be what you want to say. Plus, namingbeginners might find this type of coining beyond theircapabilities.

An easier solution is to use new spellings of existing words.For instance, CDI's creation: "Flixx.""Flixx" draws upon the slang term "flicks,"meaning movies. But the unusual spelling makes it interesting,while the double "X" at the end makes it visuallyappealing. Just as important, "Flixx" is more likely tobe available for trademarking than "Flicks," a factorthat's especially important to a chain operation interested innational expansion.

The Truth About Trademarking

After you've narrowed the field to, say, four or fivebusiness names that are memorable, expressive and can be read bythe average kindergartner, you are ready to do a trademarksearch.

Must every name be trademarked? No. Many small businessesdon't register their business names. As long as your stategovernment gives you the go-ahead, you may operate under anunregistered business name for as long as you like--assuming, ofcourse, that you aren't infringing on anyone else's tradename.

But what if you are? Imagine either of these two scenarios: Youare a brand-new manufacturing business just about to ship yourfirst orders. An obscure company in Ogunquit, Maine, considers yourname an infringement on their trademark and engages you in a legalbattle that bankrupts your company. Or, envision your business infive years. It's a thriving, growing concern, and you arecontemplating expansion. But just as you are about to launch yourfranchise program, you learn that a small competitor in Modesto,California, has the same name, rendering your name unusable.

To illustrate the risk you run of treading on an existingtrademark with your new name, consider this: When NameLab took onthe task of renaming a chain of auto parts stores, they uncoveredno fewer than 87,000 names already in existence for stores of thiskind.

That's why even the smallest businesses should at leastconsider having their business names screened. You never know whereyour corner store is going to lead. If running a corner store isall a person is going to do, then, he doesn't need to do atrademark search. But that local business may become a big businesssomeday if that person has any ambition.

Ensuring that your name is going to be federally registerable isimportant. Also make sure that the individual states that you wantto do business in will let you do business under that name.Enlisting the help of a trademark attorney or at least a trademarksearch firm before you decide on a name is highly advisable. Theextra money you spend now could save you countless hassles andexpenses further down the road. Try to contain your excitementabout any one name until it has cleared the trademark search. Itcan be very demoralizing to lose a name you've been fantasizingabout.

Trademark Classes

There are many misconceptions about trademarks and service marksand the level of protection provided for them under the law. One ofthe first misconceptions is that a trademark is all-encompassing.In fact, trademarks and service marks are filed under a specificclass or classes. (For a complete list of eligible classes, visitthe "International Schedule of Classes of Goods andServices" at the USPTO website.) There are 45 classes tochoose from when filing for a trademark or service mark. Companiescan file under one class or multiple classes depending on thenature of their product or service.

For instance, if a company has a registered trademark underclass 15, musical instruments, another company using that same namein the pursuit of doing business in the category of musicalinstruments would potentially cause confusion in the marketplaceand infringe upon a registered trademark. However, if a companydoes business within a different class, say class 1, chemicals, thepotential for confusion would be extremely unlikely.

Conducting Your Own Trademark Search

If you're going to search on your own, the Patent andTrademark Depository Libraries (PTDL) nationwide have directoriesof federally registered trademarks and an online database ofregistered marks and pending registration applications. You canalso use product guides and other materials available in theselibraries to search for conflicting marks that haven't yet beenregistered. The U.S. Patent and Trademark Office's (PTO)website listsPTDLs in your state.

The site also has a free database of pending and registeredtrademarks; these are usually entered in the PTO database one totwo months after filing. You can also contact the PTO at (800)786-9199 for general information about trademark registration or toask about the status of specific trademark applications andregistrations.

It's also a good idea to search the web and see if anyone isusing the name without having registered it. Do this with more thanone search engine for the most thorough results. Also, check withdomain name registrars like NetworkSolutions to see what's available. This can help you findother businesses using your chosen name or similar names, and itcan also help you narrow down your choices. If you can't haveyour top choice of a business name as a .com domain, you might wantto consider alternative spellings, choices or top-level domains(i.e., ".net" or ".us").

Final Analysis

If you're lucky, you'll end up with three to fivebusiness names that pass all your tests. How do you make your finaldecision?

Recall all your initial criteria. Which name best fits yourobjectives? Which name most accurately describes the company youhave in mind? Which name do you like the best?

Each company arrives at a final decision in its own way. Someentrepreneurs go with their gut or use personal reasons forchoosing one name over another. Others are more scientific. Somecompanies do consumer research or testing with focus groups to seehow the names are perceived. Others might decide that their name isgoing to be most important seen on the back of a truck, so theyhave a graphic designer turn the various names into logos to seewhich works best as a design element.

Use any or all of these criteria. You can do it informally: Askother people's opinions. Doodle an idea of what each name willlook like on a sign or on your business stationery. Read each namealoud, paying special attention to the way it sounds if you foreseeradio advertising or telemarketing in your future. Professionalnaming firms devote anywhere from six weeks to six months to thenaming process. You probably won't have that much time, butplan to spend at least a few weeks on selecting a name. Once yourdecision is made, start building your enthusiasm for the new nameimmediately. Your name is your first step toward building a strongcompany identity, one that should last you as long as you're inbusiness.

Filing a DBA

Now that you've decided upon a name, do you need to file aDBA? If you're structuring your company as a soleproprietorship or a partnership, a dba ("doing businessas") or fictitious business name allows you to legally dobusiness under your new business name (rather than your own name).You may be required by the county, city or state to register yourfictitious name.

Procedures for doing this vary among states. In many states, allyou have to do is go to the county offices and pay a registrationfee to the county clerk. In other states, you also have to place afictitious name notice in a local newspaper for a certain amount oftime. The cost of filing a fictitious name notice ranges from $10to $100. Your local bank may also require a fictitious namecertificate to open a business account for you; if that's thecase, they can tell you where to go to register. In most cases, thenewspaper that prints your fictitious name ad will also file thenecessary papers with the county.

In most states, corporations don't have to file fictitiousbusiness names unless the corporations do business under namesother than their own. For example, using dbas allows yourcorporation to run several businesses without creating separatelegal entities for each one. But if you've just got onebusiness that's a corporation, incorporation documents have thesame effect as fictitious name filings do for sole proprietorshipsand partnerships.

This article is excerpted from Start Your Own Business:The Only Start-Up Book You'll Ever Need by Rieva Lesonskyand the Staff of Entrepreneur magazine, Business Startupsmagazine and Entrepreneur.com.