Tips on Naming a Business

Levi R. from Blair, Nebraska asked, “Bob, what advice do you have on naming a business?” 

Thanks for asking Levi!

It never ceases to amaze me how some businesses with the silliest names can take off, and others with seemingly great names go nowhere. The best-case occurs when your product or business becomes the general name for that line of products. Think Kleenex: how many times have you heard someone ask for a Kleenex when they want a tissue to blow their nose?

What’s in a name?

I’ve always liked names that describe the product or service or connect the customer to the business. That’s not always necessary (think “Amazon”) but it’s nice when it can happen. 

The wrong name can kill you.  General Motors wondered why they weren’t selling Chevy Nova cars in Puerto Rico.  They didn’t realize “no va” in Spanish literally means “it doesn’t go.” 

I believe most people make mistakes with their business and product names because they haven’t thought enough about two critical questions you always need to start with:

• What is your target market? “Target Market” is the specific customers you want to uniquely serve to establish and grow your business. This is critical because if you don’t know your target market you also don’t know who, or how, to connect with them. Don’t forget their culture too.

• Realistically what do you want your business to be?  I know everyone wants to have a hugely successful business, but most can’t handle the process to grow it large. Besides, the majority of businesses are less than 10 workers, including the owners. Your name should make sense for your business. 

There’s nothing wrong with a small business that you can manage, and support yourself with at the same time. I used to own a small chain of laundromats. But, it didn’t start as a chain, it started as one small neighborhood store that was surprisingly successful. I re-invested the cash flow from the first one to get the next, and next, until I had 5 stores. 

Know your target market when naming a business.

If your target market is a specific neighborhood you can choose a name that relates to that area. My first laundromat was named “South O Laundry” because South Omaha was my target market, and I wanted the customers to think of my store as their laundromat. 

When I knew I wanted more laundromats I chose the name “Discount Laundry” for the rest. I knew my customers, and that funds were tight for most of them so I wanted to target customers looking to stretch their dollars. I grew my brand and business by having new machines, clean locations, and longer dry times than my competition, for a slightly lower price. In 2 years we built it up to 5 stores, and then I sold the chain for a 6-figure profit. That name was scalable for great expansion, but I got burned out after 5 stores. 

You can always take the path of least resistance and use your name in your business as I have with our company “Pelshaw Group Inc.” But that limits the chance for you to spread the word on what you do unless you are your own brand. My wife, Ilaamen, is an artist so her division of Pelshaw Group Inc. is “Ilaamen Studio.”  You can try to include what you do in your name, like if I wanted to do “Pelshaw Construction,” but that might be too bland or common for your vision. 

It’s powerful if you can have a name that’s also an internet search keyword.

I recently launched a new division of our company called “Midwest Diversity Consulting.” We help large construction companies recruit, vet, and mentor small businesses and disadvantaged businesses on large projects. I chose that name because when I was researching the competition I realized there were no for-profit companies doing this in the Midwest, where I live, and I wanted to pop up on online searches if they used any of those keywords. 

If you’re creative enough to come up with a cool, hip name or brand then I’m all for that, as long as your target market customers can connect to it. Keep in mind, those cool random names usually need a lot of advertising and promotion dollars to get established and recognized in the marketplace. Why not launch with a simple,  direct name that you know can grow your business, and later re-brand with the cool, trendy brand name once you have the funds to launch that properly?  

What not to do:

• don’t make the name complicated, hard to pronounce, or crude/vulgar (unless that’s your brand)
• don’t infringe on anyone else’s name, brand, or trademark 
• don’t make your name or logo something that’s hard to read on signs, ads, cards, labels, etc.
• don’t make it (or your web or email addresses) too long 

DO make it memorable, so it represents YOU. Good luck with naming your new business! 

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© 2022 Pelshaw Group, Inc. Used with permission.

Ask Bob is an advice column by Bob Pelshaw, formerly incarcerated citizen, successful entrepreneur, speaker, and author of the award winning Illegal to Legal: Business Success for the (Formerly) Incarcerated. (Book and workbook available on Amazon). Bob also provides content to Edovo, GTL, PayTel, and jails and prisons nationally.

Ask Bob answers questions about life, successful re-entry, starting a business and entrepreneurship, and most anything that adds value, except the column does not cover legal issues, sentencing matters, or case issues. To ask Bob a question, write to him at:

ASK BOB
c/o Pelshaw Group, Inc. 
PO Box 460671 Papillion, NE 68046