Choosing a name is fun and sometimes the most painful part of starting a business
Congratulations, if you've made it as far as choosing a name for your business, then you're halfway there. Well, choosing a name is exciting; it's also an area where a lot of founders get stuck. When we look at most of the businesses we frequent and love, we see a complete Brand. Usually, it just makes sense of course Apple is Apple, and of course Whole Foods is Whole Foods. But the truth is every brand name is the result of a painful yet necessary process of distilling what your business represents into a simple name. There's no "right way" to do it, but there are some best practices to keep in mind.
The sad reality is that you're not naming your business for yourself. The name you choose is for your future customers, investors, and employees. This means we must keep in mind people's expectations regarding certain types of products or services. For a Mexican restaurant it's undoubtedly helpful if people can quickly understand by looking at the restaurant's name what kind of food they can expect to get. For a friend running a Mexican restaurant, having a descriptive name similar to other types of Mexican restaurants is not necessarily bad. For instance, most people that eat Mexican food like Mexican food, so the goal is not only differentiation but, importantly its, also positive association. On the other hand, let's consider a SAAS start It'll be hard to imagine a software company choosing a name like John's Calendar Integration. Whereas our local Mexican restaurant might do well as Juan's Mexican Grill.
This may seem obvious, but it's important to remember we benefit from naming our business in line with the customer's expectations and the market trends. One of the biggest jobs of a brand (which includes your logo but is much more than your logo) is to convey trust. If our name is too far off the beaten path, it creates an unnecessary opportunity for distrust. However, as with every "rule", there are exceptions. The creative industries have Virtually no rules regarding naming. That said, expressing creativity and the name is their primary goal
Choosing a name that's unique enough to differentiate you from the competition is important. It's also important to make sure that you're not infringing on somebody else's trademark. Some helpful tools to determine whether or not you have a unique name in mind is to check the US Patent and Trademark Office and the Network Solutions WHOIS database. When you file your business, you'll also be able to check on a state and often even city level to see if there's any conflict with your desired name. It's essential to differentiate yourself from the competition. You want to be memorable and not easily confused with the other guys.
Back when phonebooks were a central part of daily life, having a name with the first letter earlier in the alphabet was especially advantageous. Now it's become less so, however at some point in time your company will likely appear on a alphabetical list with other service providers or products. Avoid names that begin with numbers because when it comes to typing your business name it's easy to forget whether to use numbers or to spell out the numbers. It's also generally good to avoid having the letters X and Z first in your name. Besides the fact that they are late in the alphabet, they are also confusing to write after hearing them. Imagine your friend tells someone about your awesome new marketing Agency, but they later can't remember how to spell it to find your website. Sometimes that type of challenge is all it takes to miss out on an opportunity.
And many tech businesses, we're seeing more and more names that can be used as a verb. For instance, Slack me (Slack business messenger), or Googling something (You should know lol) or the most popular in recent history, let's have a Zoom meeting (Zoom Video conferencing). Would your business benefit from having a name that can be used as a verb?
Some businesses in certain industries will benefit from having multiple words in the name. Law firms, for instance, are usually named after the last names of their partners. It's helpful when tire shops include the word "tire" in their name (Like Discount tire. Without "tire" you wouldn't know what they do). If what you are selling is a commodity class product, service, or experience, then including a descriptor will be beneficial.
Avoid being unnecessarily abstract (this is a great rule for everything communications). This doesn't mean that people need to understand your name immediately. A lot of businesses benefit from having a "meaningless" name. It's great when your company gets to define what a new word means. When someone asks you what your business name means, this is an opportunity to share a memorable story. Remember if you choose to have a name that requires an explanation, you want that explanation to be memorable and meaningful.
Ask people what they think of your name before you commit to it. It might have negative meanings in different languages, or it could conjure up a different sense of feeling than you anticipated. Your name could also feel to other people like it doesn't line up with your product or service. Outside perspectives are invaluable when it comes to choosing a great name.
Choosing a domain name has gotten a little crazy in the last 10 years. First off, most of the ideal .com domains are taken. If they're not then depending on the word, don't be surprised at a $10,000 more price tag. So what are you supposed to do as a young company without extra money? Consider using a domain extension.
While .com is still the most popular domain extension, thankfully, there are lots of other options now. But not all options are created equal; depending on the industry that you're in, having an obscure domain extension could be negative for your credibility. Regardless of your industry however, it's generally best to choose the most popular domain extension that matches your company's offering. Here is a list ranked by popularity with corresponding meanings.
.COM - For-profit business
.NET - Networks
.ORG - Not-for-profit organizations
.CO - Columbia (but often used for companies)
.EDU - For education
.US - United States
.ME - Montenegro but market for individuals (great for blogs)
.IO - British Indian Ocean Territory but has become known for Input/Output (popular for startups).
.AI - Anguilla, in the Caribbean but has become popular with tech companies since it looks like it could mean Artificial Intelligence.
There are many other options; these are just some of the most popular in the United States. If you are launching your company in another country, it would be good to use what's popular in your market.
Buying a domain to match the name you love can get tricky. If lots of other companies have used your name before then, chances are you're not gonna be able to find the ideal domain name still available. At this point, you have two options, have a domain that doesn't exactly match your business name or use a descriptive word as a part of your domain name. It's almost always better to use a descriptor in your domain name than to create confusion by having a different domain name than your business name. For instance, if you're an interior designer, you could add a design to your domain name alongside your business's primary name.
If you're starting an online business, then your domain name is really important; in this case, you might want to consider the domain name search being a part of your business name selection process. Having a short, memorable domain name with the best possible domain extension is essential for online businesses.
There are lots of sites that you can buy a domain from. The only one we're going to recommend is Namecheap.com. Namecheap.com protects your personal information without charging you extra for privacy. Many sites won't protect your contact information unless you pay extra. This means pay more per year for privacy than you do your domain or be hounded with emails and calls from overseas developers trying to build you a website.
To learn about how to build your website and which website builder is best for you, check out our article on building your website. If you're looking for a simple, easy-to-use website building platform that requires no coding or experience, then we recommend squarespace.com. We are mentioning this now because squarespace.com will often offer a free or reduced-price domain name to purchase your plan. If you think squarespace.com could be a good fit for you, then consider waiting to buy your domain name until you begin the process of building a website.
One mistake that many founders are inclined to make is putting too much emphasis on the name and the domain too early on. In reality, many businesses shift their brand, product, or offering within the first year of their business. It's usually not a good idea to put too much time, energy, and money into having the perfect domain right now. The best thing is to choose a working name by a cheap domain and get to work. As you grow, you'll get a clear picture of whether you will stick with your original name and domain. We recommend waiting on that $5k domain and launching with the $10 one until you make enough money to justify the added investment. There are always exceptions, but for most businesses, it's better to put your time, money, and energy into developing the best product, service, and experience you can.
Choosing a name is fun and sometimes the most painful part of starting a business
Congratulations, if you've made it as far as choosing a name for your business, then you're halfway there. Well, choosing a name is exciting; it's also an area where a lot of founders get stuck. When we look at most of the businesses we frequent and love, we see a complete Brand. Usually, it just makes sense of course Apple is Apple, and of course Whole Foods is Whole Foods. But the truth is every brand name is the result of a painful yet necessary process of distilling what your business represents into a simple name. There's no "right way" to do it, but there are some best practices to keep in mind.
The sad reality is that you're not naming your business for yourself. The name you choose is for your future customers, investors, and employees. This means we must keep in mind people's expectations regarding certain types of products or services. For a Mexican restaurant it's undoubtedly helpful if people can quickly understand by looking at the restaurant's name what kind of food they can expect to get. For a friend running a Mexican restaurant, having a descriptive name similar to other types of Mexican restaurants is not necessarily bad. For instance, most people that eat Mexican food like Mexican food, so the goal is not only differentiation but, importantly its, also positive association. On the other hand, let's consider a SAAS start It'll be hard to imagine a software company choosing a name like John's Calendar Integration. Whereas our local Mexican restaurant might do well as Juan's Mexican Grill.
This may seem obvious, but it's important to remember we benefit from naming our business in line with the customer's expectations and the market trends. One of the biggest jobs of a brand (which includes your logo but is much more than your logo) is to convey trust. If our name is too far off the beaten path, it creates an unnecessary opportunity for distrust. However, as with every "rule", there are exceptions. The creative industries have Virtually no rules regarding naming. That said, expressing creativity and the name is their primary goal
Choosing a name that's unique enough to differentiate you from the competition is important. It's also important to make sure that you're not infringing on somebody else's trademark. Some helpful tools to determine whether or not you have a unique name in mind is to check the US Patent and Trademark Office and the Network Solutions WHOIS database. When you file your business, you'll also be able to check on a state and often even city level to see if there's any conflict with your desired name. It's essential to differentiate yourself from the competition. You want to be memorable and not easily confused with the other guys.
Back when phonebooks were a central part of daily life, having a name with the first letter earlier in the alphabet was especially advantageous. Now it's become less so, however at some point in time your company will likely appear on a alphabetical list with other service providers or products. Avoid names that begin with numbers because when it comes to typing your business name it's easy to forget whether to use numbers or to spell out the numbers. It's also generally good to avoid having the letters X and Z first in your name. Besides the fact that they are late in the alphabet, they are also confusing to write after hearing them. Imagine your friend tells someone about your awesome new marketing Agency, but they later can't remember how to spell it to find your website. Sometimes that type of challenge is all it takes to miss out on an opportunity.
And many tech businesses, we're seeing more and more names that can be used as a verb. For instance, Slack me (Slack business messenger), or Googling something (You should know lol) or the most popular in recent history, let's have a Zoom meeting (Zoom Video conferencing). Would your business benefit from having a name that can be used as a verb?
Some businesses in certain industries will benefit from having multiple words in the name. Law firms, for instance, are usually named after the last names of their partners. It's helpful when tire shops include the word "tire" in their name (Like Discount tire. Without "tire" you wouldn't know what they do). If what you are selling is a commodity class product, service, or experience, then including a descriptor will be beneficial.
Avoid being unnecessarily abstract (this is a great rule for everything communications). This doesn't mean that people need to understand your name immediately. A lot of businesses benefit from having a "meaningless" name. It's great when your company gets to define what a new word means. When someone asks you what your business name means, this is an opportunity to share a memorable story. Remember if you choose to have a name that requires an explanation, you want that explanation to be memorable and meaningful.
Ask people what they think of your name before you commit to it. It might have negative meanings in different languages, or it could conjure up a different sense of feeling than you anticipated. Your name could also feel to other people like it doesn't line up with your product or service. Outside perspectives are invaluable when it comes to choosing a great name.
Choosing a domain name has gotten a little crazy in the last 10 years. First off, most of the ideal .com domains are taken. If they're not then depending on the word, don't be surprised at a $10,000 more price tag. So what are you supposed to do as a young company without extra money? Consider using a domain extension.
While .com is still the most popular domain extension, thankfully, there are lots of other options now. But not all options are created equal; depending on the industry that you're in, having an obscure domain extension could be negative for your credibility. Regardless of your industry however, it's generally best to choose the most popular domain extension that matches your company's offering. Here is a list ranked by popularity with corresponding meanings.
.COM - For-profit business
.NET - Networks
.ORG - Not-for-profit organizations
.CO - Columbia (but often used for companies)
.EDU - For education
.US - United States
.ME - Montenegro but market for individuals (great for blogs)
.IO - British Indian Ocean Territory but has become known for Input/Output (popular for startups).
.AI - Anguilla, in the Caribbean but has become popular with tech companies since it looks like it could mean Artificial Intelligence.
There are many other options; these are just some of the most popular in the United States. If you are launching your company in another country, it would be good to use what's popular in your market.
Buying a domain to match the name you love can get tricky. If lots of other companies have used your name before then, chances are you're not gonna be able to find the ideal domain name still available. At this point, you have two options, have a domain that doesn't exactly match your business name or use a descriptive word as a part of your domain name. It's almost always better to use a descriptor in your domain name than to create confusion by having a different domain name than your business name. For instance, if you're an interior designer, you could add a design to your domain name alongside your business's primary name.
If you're starting an online business, then your domain name is really important; in this case, you might want to consider the domain name search being a part of your business name selection process. Having a short, memorable domain name with the best possible domain extension is essential for online businesses.
There are lots of sites that you can buy a domain from. The only one we're going to recommend is Namecheap.com. Namecheap.com protects your personal information without charging you extra for privacy. Many sites won't protect your contact information unless you pay extra. This means pay more per year for privacy than you do your domain or be hounded with emails and calls from overseas developers trying to build you a website.
To learn about how to build your website and which website builder is best for you, check out our article on building your website. If you're looking for a simple, easy-to-use website building platform that requires no coding or experience, then we recommend squarespace.com. We are mentioning this now because squarespace.com will often offer a free or reduced-price domain name to purchase your plan. If you think squarespace.com could be a good fit for you, then consider waiting to buy your domain name until you begin the process of building a website.
One mistake that many founders are inclined to make is putting too much emphasis on the name and the domain too early on. In reality, many businesses shift their brand, product, or offering within the first year of their business. It's usually not a good idea to put too much time, energy, and money into having the perfect domain right now. The best thing is to choose a working name by a cheap domain and get to work. As you grow, you'll get a clear picture of whether you will stick with your original name and domain. We recommend waiting on that $5k domain and launching with the $10 one until you make enough money to justify the added investment. There are always exceptions, but for most businesses, it's better to put your time, money, and energy into developing the best product, service, and experience you can.
StacDek helps companies design strategies that drive long-term growth.