Naming your new business

Thinking of a name for a new business can be fun, but it’s an important task, too. A good name can be one of your most powerful marketing tools.

Crucially, you need to strike the right chord with potential customers. The business name must create the desired impression in their minds of what your business does and what it stands for. It will be a key part of promoting your new business to your target market.

Different types of business name

Some owners go for abstract or deliberately unusal names when naming their business. In many cases, this isn’t advisable. You could fail to attract customers, if they can’t quickly understand what you are selling.

Picking something that sticks in people’s minds is wise, but your name should be memorable for the right reasons – not because it’s pretentious, bad or just plain ridiculous. Short names are easier to remember, of course.

A modern name will suit some businesses, while for others it’s more important to evoke tradition. Don’t pick something that will soon look outdated.

Genuinely amusing business names are rare and suit specific types of business. Trying to be funny can backfire, because it can suggest an owner who doesn’t take their business seriously enough. 

Using your own name for your business

Using your own name for your business can be effective if building close relationships with clients is key. It gives the impression of a small and personable approach.

If you use your name, it's important to let people know what you do, either in the name (eg Joe Stone Paving Specialists) or accompanying strapline (eg Joe Stone Ltd – High quality pathways and patios).

Giving a sense of place can be effective, too. It suggests local pride and identity – and possibly authenticity and quality.

Legal considerations when naming a business

Only private limited companies can use ‘limited’ or ‘Ltd’ (‘plc’ for public limited companies) in their names. Visit the Companies House website to view an online register of existing limited company names and find out how to go about registering your business if you’re starting up a limited company. Sole traders or those in partnerships can trade under their personal names or go for something that suggests a larger organisation.

If your name causes customers to confuse your business with another, you could be guilty of ‘passing off’, which is an offence. Better to make your name distinct. Do some market research to find out whether your preferred business name is already being used.

Some words and expressions cannot be used unless you’ve been granted official permission. These include words suggesting the business is of: national importance (eg British); special status (eg association); a particular function (eg trust) or a specialist activity (eg health centre). Obviously, you can’t use swear words or others likely to offend.

Other considerations when naming a business

Ask yourself whether a potential name is easy to say and spell over the phone (also whether it can be misheard as something offensive or amusing). Steer clear of long names, strange words and unusual spellings.

Check whether the corresponding domain name is available. Also consider how your name would look in an email address, marketing materials and signage.

If you plan to trade overseas, check that your business name in English doesn’t sound offensive or inappropriate in other languages. And make sure that it can be easily read and understood by people whose native language isn’t English.

When you have come up with a business name, try it out on friends and family. If you’re not met with giggles or bewilderment – and saying the name fills you with pride and added confidence rather than embarrassment – you could be on to a winner.