At the time of forming a new business, you may want to trade under a business name that you have in mind. You may choose to trade under your name if you are a sole trader, and if you are planning to set up a family business with your partner then under your family name, you can choose to trade.
If your company expands and you are willing to take it to the next step to register it as a limited company, then you would be required to ensure that you select the right company name to register with Companies House.
Choose your name before trading
Sometimes individuals begin a company without giving their company name a lot of thought.
If you completely incorporate your business as an official limited company or LLP (Limited Liability Partnership) before you begin trading, then selecting your business name will be a crucial first step to bringing your business to life.
The first step is to select the appropriate company name for your business during the process of creating your limited company. This will shape and define your business and offer it real-world status and credibility.
You should take the time to make a wise decision. Your business name must be distinctive, but in some logical manner, it must also relate to you. It's also beneficial to choose a memorable name that sticks easily in the mind, but that doesn't mean your business name needs to be strange.
Choosing a very uncommon name can only confuse your potential clients or even put them off purchasing your products or services because your name may draw in their minds an unreliable image.
Why is it vital?
You may have the most brilliant business ideas but it doesn't mean you can get your concept across to your prospective clients without first being introduced to them by yourself and your company.
In cases when the idea of your company name is not unique, you'll still require your prospective new clients why you're a legitimate business and there is a fundamental reason why purchase should be made from you, not from your competitors.
Your company name should be easy to pronounce so that you will be able to say the name over again without any difficulty and also like to hear it being repeated back to you.
At the time of forming your company website, your choice of a company name is a very vital part and it will help to make the perfect first impression and correct image of your company will help you to create a good impression on your potential clients.
The website of your company should be the first point of communication with your potential clients or for the B2B networking contacts. You can run a business from home, provide a mobile service, run from a retail shop or warehouse space so that everyone can notice your company name.
You need to make the name of your company appealing so that every individual searching for your products or services online will be more inclined to click on your website rather than click on a competitor site.
Build your brand name
Your brand name must act as an efficient and memorable tool that enables your clients to remember you. It should be linked to your company name.
Once you have your potential names of the company shortlisted, try visualizing the names as an artistic logo that is recognizable, readable, simple, and, which reflects your business. You should share these mock-ups with others and be open to an honest discussion about the brand direction, design, style, and tone.
The questions which you should be ask yourself are as follows:-
- Does the font of the text go well with the logo
- Do you enjoy using the colour scheme
- Can you easily read it
- Is that talking to you
- Do you like how it's written
The last question you have to ask yourself is: can it be improved? If the answer is yes, go back to the drawing board and draw your favourite design until the last question can be answered honestly' no.'
Mainly, it is all about maintaining a balance between a suitable company name and being able to produce good branding from it.
As you can see from above, the process of naming your company is very essential and this task should not be taken lightly.
If you have the slightest doubt or hesitation about any aspect of your company name and how you're going to use it, you can take more time to decide on your company name.
Try to select the name of your company that can grow with your business and can set a good foundation to build your company upon for future success.
Once you have your company name, you can then officially register it as a Limited Company with Companies House through the Company Formations Process. You can then confidently use your company name to create a compelling brand that gets you recognised and remembered.