Communicates the correct information. You want to avoid anything in your business name that could substantially confuse potential customers about what you do. So even if you think your name is crystal clear (e.g., Jim’s Photo Services), ask a few other people if they can easily figure out what business you’re in (e.g., do they think you take photos, process film, provide digital photo touch-ups?). A very clear company name, such as “Main Street Volvo Repair,” immediately lets customers know what to expect, but watch out if your services later change or if you run into trademark problems—see below.
Conveys the right feeling. You generally want to choose a name with positive connotations: A day spa named “Haven” or “Oasis” transmits the sense that customers are going to escape the stresses in their lives. Even words such as “Main Street” or another location tells potential customers that the service is local and convenient.
Won’t get dated quickly. Be careful not to choose names too closely identified with recent trends or that are too limiting. You are likely to change the scope of your products or services over time. Look at all those ecommerce companies that had to drop the words “dot com” from their company names. When Twentieth Century Fox Film Studios was founded in 1935 (merging Fox and Twentieth Century studios), the name “Twentieth Century” seemed associated with the idea of something young and new. Of course, by the end of that century, it no longer seemed fresh, and the company now uses just the name “Fox” for some of its entertainment units.
Is easy to spell. If a name is too hard to spell, it becomes harder for a potential customer to remember. Spelling becomes even more important when you use your company’s name as part of your website domain name or if you’re in a business where clients have to spell your company’s name often.
Is easy to pronounce. People have a harder time remembering names they can’t say easily, and they feel uncomfortable doing business with companies whose names they can’t pronounce.
Is memorable. Obviously, if clients or customers have an easier time remembering your name, they’re more likely to do business with you again. A memorable name isn’t absolutely necessary or always even possible. In fact, a company with a straightforward name, such as “Des Moines Chiropractic Clinic” may develop a better business than a company with a cute name like “Back Attack.”
In the end, however, one of the most important considerations is whether you like the name and feel comfortable with it. After all, you’re the one who will see it and say it the most.
Most important, don’t get stuck trying to decide on your name, slowing down the start of your business. At some point, you just need to make a choice and get on with it.
Use the worksheet on pages 28–29 to compare some of the names you’re thinking of for your business, and their pros and cons.
Check out trademarks
You’re thrilled! You’ve settled on a name for your new breakfast cereal company: “Yummy Tummy.” You’ve even invented a cartoon character, “Yummy Tummy Tillie,” to symbolize your brand. You’re ready to set the world on fire!
Not so fast. Before you can make your company a household name, you need to make sure you can use and protect that name. You don’t want to invest money and time building “brand equity”—value associated with the name of your company—just to discover someone else is already using “Yummy Tummy.”
That’s where trademark laws come in. There are two primary kinds of trademarks:
Trademark
Service mark
When you acquire the rights to a trademark or service mark, you get legal protection from other companies’ using your company’s name, logos, taglines, or other distinctive marks on competing products or services.
Even when you are granted a trademark, you don’t “own” the name in all instances. As part of the trademark application process, you’ll indicate the specific category or categories of products or services for which you’ll use the name. For instance, if you’re using “Yummy Tummy” for breakfast cereal, someone else could get the rights to use the same name for unrelated products or services—a weight-loss program, for instance.
ABOUT TRADEMARKS
What is a trademark or service mark?
A trademark is a word, phrase, symbol, or design, or a combination of words, phrases, symbols, or designs, that identifies and distinguishes the source of the goods of one party from those of others.
A service mark is the same as a trademark, except that it identifies and distinguishes the source of a service rather than a product.The USPTO uses the terms “trademark” and “mark” to refer to both trademarks and service marks. [In Canada, a trademark can be used for either a product or a service.]
Is registration of my mark required?
No. You can establish rights in a mark based on its legitimate use. But in the United States, owning a federal trademark registration on the Principal Register secures the following advantages:
Constructive notice to the public of the registrant’s claim of ownership of the mark;
A legal presumption of the registrant’s ownership of the mark and the registrant’s exclusive right to use the mark nationwide on or in connection with the goods and/or services listed in the registration;
The ability to bring an action concerning the mark in federal court;
The use of the U.S. registration as a basis to obtain registration in foreign countries; and
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