When forming a limited company, the name of the company can be an important decision. Some people may choose the first name they think and other people can choose the company ready to use for speed or because they like a particular name. However, many businesses may prefer to choose a company name that clearly distinguishes itself from its competitors or contains something unique or personal. Company names can be chosen for various reasons.
One of the most common ways to choose a company name is to use something personal. A glimpse of your local newspaper will probably introduce you to many personalized business names. Johnson Consulting Limited, T Smith & Son Limited, Stephens & Barley Limited are some fictional examples of what can be found. This can directly make a company recognizable locally, can be considered more personal by its customers, and often works well within a geographical area. However, it doesn't tell many new customers what your company is doing.
A popular choice for small businesses is to choose a name that is 'descriptive'. This tells potential clients what your company is doing. An example is to call your business The Window Company Limited, City IT Consultants Limited or The Advertising Agency Limited. While this serves to strengthen your main business, it offers a little differentiation and can be easily adapted by competitors.
The less personal choice is to use a company name that is 'associative'. This type of company name helps create images or connections to your business activities. This is less direct than using descriptive names but helps position your company's name in the market through people's understanding of the meaning of words. For example, volumes through the Yellow Pages will offer many examples of this. A hairdresser called Classic Cuts or a printer named Selectaprint Limited is an example of what can be found. These names offer some differentiation but ultimately cannot make your company excluded from its competitors.
The alternative is to choose the name of a company that is 'free standing'. These names are fully abstract and not related to the company's business activities. A fictitious example might be to call your catering company Zedoc Limited. There are many popular brand names that illustrate this. Consider, Kodak, Gillette, or Mars, these names may be recognized by you immediately and bring up a particular product or business. This is a good way to organize your company aside from competition, but it is important to consider the market where you operate. Do your prospective clients know what your business offers?
Choosing a company name may be a simple process, but it's not uncommon for people to talk about names for some time. While company names can, and often do, change during the life of the company, most people like to choose the name they like from the start. Therefore, consider your market, how much you want to differentiate from your competition and what your company should say about your organization. After the decision is made, focus on the important business to make your company successful.
