What's in a company name?

6/15/2011

Now that entrepreneurs are finding it much easier to gain access to commercial loans, many are contemplating starting a new company. Naming these new companies is something that small business owners should think long and hard about, suggests Richard Branson, founder of the Virgin brand.

A name should say something about a business, but that doesn't necessarily mean it has to say what the company does or produces - it could speak to the brand's personality or could personify an attitude. Naming a company after a product or service limits the brand in terms of future growth.

"Any entrepreneur choosing a company name should think carefully about whether a proposed name is sufficiently versatile to be extended to future products and services," Branson wrote for American Express OPEN Forum.

The same could be said of logo design - for example, Nike's logo is a creative swoosh, not a shoe. This enabled the brand to place the logo on other items, such as shirts and caps, without confusing the customer.