In this rapidly growing economy, it is commonplace to see businesses in every nooks and crannies of the world. Sole proprietorship is having the highest number of registration. From the home-based entrepreneur to the shop owner, and then the small office consultant, people are taking advantage of the freedom enjoyed in becoming their own boss.Billions of corporate monies are invested yearly in starting new businesses. A visit to the Lagos office of the nation’s registrar of business names, Corporate Affairs Commission (CAC), Lagos buttresses this fact.While it is true that anybody can start up a business of their own, many entrepreneurs have fallen short of the leveraging that accrues from this experience. This, to a large extent, has to do with the disadvantaged names worn by these businesses.

A business does not actually begin by formulating a business plan or opening a bank account. It starts from choosing a name. There’s more to business names than just identity. The right name is an advertising tool. If the name doesn’t describe the nature of your business, potential clients may not realize that you offer something they need.Let’s take a look at the top 10 mistakes to avoid when choosing a business name:

1. NOT KNOWING WHAT KIND BUSINESS YOU ARE IN. It is surprising that some entrepreneurs choose a name with little or no indication of what type of work the organization actually does. Including a descriptive word in your business name can be useful when marketing your products or company. This may be made possible if you have identified what differentiates you from competitors. Take the following examples:Adenix and SonsOne Love EnterprisesJust You ShopCan you tell me what any of these companies do? No! They’re relying on customers already knowing who they are (a tricky proposition for new businesses).

2. USING A NAME THAT IS TOO LONG, DIFFICULT TO REMEMBER, SPELL OR PRONOUNCE. A good name is something that can be mentioned on radio or over the phone without explanation. For example, which of these is easy to remember, " Cee Bayjo Systems Company," and "Loud Media Company"? People will make a quick decision based on their first impression of your business name. Put the name through a spelling test and ask others to spell it. So, choosing a name such as "Lolitoesy" is not a good one.

3. NOT SPENDING QUALITY TIME BRAINSTORMING. Business names are not "spur of the moment" creations. It is the result of possibly long days and nights of brainstorming, digging the Thesaurus for synonyms and antonyms, interrelated words and words that have some kind of relationship with the proposed business activity. The big companies even hire expensive consultants to help them choose the right name for their businesses or products.

4. PROMOTING A NAME WITHOUT TESTING AND CHECKING ITS AVAILABILITY. Once you have chosen a few names, test them out on friends and family, potential clients and everyone you know. Ask them what kind of service they feel you provide and feeling they get about the name. You’ll be surprised at how honestly they give you suggestions. Then you can proceed to check availability at the name registry nearest to you after being convinced it’s best. Don’t waste money on letter heads and complimentary cards trying out a business name already chosen by someone else.

5. CHOOSING WORDS WITH NEGATIVE OR NEUTRAL CONNOTATION. A word’s connotation can be positive, negative or neutral, depending on the emotional associations that people generally make. If you are starting a transport business for instance, you don’t want it to have a weak sounding or negative name, such as "Willow Twig Trucking" or "Kitten Transport". You want a business name that conveys strength and reliability. A choice such as "Stone Creek Transport" would be much better. Remember: Words are powerful.

6. NAMING A BUSINESS AFTER THE FOUNDER OR ANY OTHER PERSON. It is a common tendency for a business to be named after the original founder. This approach can make customers expect the personal attention and care of the owner. Using your name, followed by the type of service works well if you have an already established reputation in your specialty. But, if you are planning to one day sell your company, a company-owner named business is less attractive.

7. NOT CONSIDERING THE FUTURE. Robert Dilenschneider wrote about a public relations person who broadened her services from just writing to media relations and had to change the name of her business from Miller’s Writing Services to Miller’s Communications. Aside brainstorming for ideas, you need foresight in choosing a name. Even if you are operating a highly-niched product, select names that would represent a broader category of your product line.

8. FAILURE TO GET THE RIGHT DOMAIN NAME FOR YOUR BUSINESS. If your business activity is almost 100% online or will do better having an online presence, you may need to consider starting your search by getting a suitable domain name for your website first. In the modern world of the internet, where people automatically turn to the web for information, it pays to have a domain name that reflects your site or business.

9. NOT AVOIDING LAWSUIT. Be unique. The best you can be trying to be someone else is second best. Avoid being a copycat. Using a name similar or identical to that of another business can get you into problems including legal issues. If you call your line of equestrian apparel "Polo Sporting Designs", the holder of the trademark "Polo" - the giant Ralph Lauren - may slap you with a lawsuit.

10. NOT CONSULTING A BUSINESS NAMING EXPERT. While the services of lawyers, chartered accountants and chartered secretaries can be invaluable in the registration of a business name and company, these categories of professionals might not understand the selling and marketing principles that copywriters can use to your advantage. A good copywriter is always looking for ways to help you communicate more effectively to more people.

Send an e-mail to Ayokunle at loudmediacompany@gmail.com for free advice or review of your new or existing business name. We do registration of Business Names also.

business name may be anything. the most important thing is branding.
for example would globacom have had any difficulties in the market if it had been named glo? what about Zain?

Yes! A business name could be anything you think of, but wait a minute, how many small businesses have the financial muscle to market their brands like Globacom or Zain? If you are a small business owner, be mindful of what you call your business name, otherwise you might not be able to make headlines on the minds of prospective customers.

As far as i am concerned, Zain is not a name too good.

From my study of great brands, a good brand begins from what i call 'Name Positioning'. Products have failed oversees sometimes simply because a name may take on unanticipated meanings in translation. For example, the Olympic copier Roto in Chile (Roto in Spanish means 'broken'), the Randan in Japan (Randan means idiot), etc.
Friend, naming a product as well as a business shouldn't just be 'anything'. It is communication at It's simplest level. The big companies are aware of this branding truth. Next to child christening is naming a business. It should be taken with all seriousness (especially if you are a small business).

For more useful marketing resources you can use for your business type AYOKUNLE BANKOLE on Google search. Or visit there sites,
www.loudmedia.
www.rulingideas..com
www.loudmediacompany..com
See you at the top.

@ceebayjo, Zain might not sound like a good name, but i bet you can easily remember the name.

I am surprised that anybody would argue with what ceebayjo wrote on naming a business. It appears some nairalanders just post for the sake of it. People like ceebayjo should be encouraged. To me he sounds like a man who knows his onions.

Now who says there is nothing to a name and that branding is all you need. Let him start his GSM network and name it OworonsokionaGbagada and see how it goes. It is people like them who start a school  and name it Ogo oluwa Kitan International Primary school. I will never take my child to such school even if their teachers come from Eton college in Engand. I would rather take him to The Achievers or Future Leaders School. On this issue, I am on all fours with Ceebayjo and all professional marketers will.

Any business name must satisfy the following conditions

1. Must be remembered easily
2, Must be short
3, Must be relevant
4 must portray a bit of value the customer will get.

Go ask Okoya, he will tell you he didn't arrive at Eleganza by accident. Ask Tantalizer boss, he must have spent a lot of resources to arrive at that name and the list can be stretched infinity.

As for Zain, i also agree with ceebayjo, i do not think much of it. When i hear it, i think of vain and from there i think of vainglorious and for that i do not like them. Celtel was better, souds feminine and beautiful and that is how it should be.

I really love this post.
the write up is very informative. it will help a great deal