Choosing a Name

A business name serves two functions

1. It helps customers identify one business among many
2. The name carries a reputation of the business
   

Two schools of thought

1. Select a distinctive name
2. Select a descriptive name
   

Distinctive names must have the advertising dollars committed to letting the consumers know what their products and services are.

1. Prevents confusion of company identities
2. Prevents confusion of company reputations
   

Most small businesses should select a name that, at least in part, clearly describes the product or service provided.

1. This allows customers to know your products and services without committing as many advertising dollars.

A fanciful or whimsical name is fine from the image stand point, but it should also give the public a clear idea of what your business provides in the way of goods and services.

EXAMPLE: In Michael Jenkins book Starting and Operating a Business in SC, he gives the name of a restaurant as an example. The name is "The Comestible Emporium". You will probably have a lot of hungry people pass by without realizing what you do. EX. "The Melting Pot".

It is a wise decision to choose a name that is partially arbitrary or nondescriptive in conjunction with a name that is descriptive of the goods and services provided. EX. Craftmakers Cabinetry.

The reason for this is to protect your company name with a trademark.

TRADEMARKS - The name chosen must be unique

Patent and Trademark Office (703) 305-HELP(4357).

You also need to consider putting your name in public

1. You should consider using a fictitious name-(DBA) - Doing Business As
2. If you use your real name and your business fails - people might associate your name with a defunct or bankrupt business. This could cause difficulties if you ever tried to start another business.

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