Naming Your Startup: Broad Market

Coming up with a name for a business is not always an easy task.  There are many factors that go into a good name.  Will the name relate to you, your family, the technology behind the company, the location of the company, the size of the company, the target market, or even the product itself?  There are many things to think about when trying to decide what a good name will be.

I guess first it would be a good idea to define what a "good" name is.  A "good" name is one that is simple enough to stick in your head after the first time hearing it, but complex enough to make you think about the meaning.  Think about some of the most household company or brand names in America: Wal-Mart, Apple, Facebook, Delta, Starbucks.  All of these companies have a broad target market.  They have either used short, one syllable words or a compound, two syllable word.  This makes it easier for consumers to remember the name.

A "good" name also relates to the target market.  For instance, Facebook was named after the "face books" (online directories with pictures of students) from the various dorms at Harvard when Zuckerberg was a student.  This automatically tied his market, which at the time was only Harvard students, to his product.  

Wal-Mart (short for Walton's Mart) was originally named after the founder, Sam Walton and was later shortened for easier communication.  Using an established family name on the national scale does the same as on a small town scale.  Credibility is key.  Attaching a family name gives most companies (and their employees/consumers) a small town feel, a sense of pride, and a strong trust.  When someone is willing to put their family name on something it often means high quality service and products.

Using a location or region in your company name ties your market to that location or region.  Don't name a national automobile parts store "Atlanta Auto Parts" (for obvious reasons).  At the same time, if you are looking for a smaller state level market then a name with the region in it can be a great idea.  A perfect example of this is Southern Company.  Southern Company is an energy company that powers many homes and businesses in the southeastern United States.  It has two main brands within itself, which are Alabama Power and Georgia Power.  If you are a resident of either of these two states, you most likely get your power from the Southern Company.  And who better?  I just moved to Georgia and I can say that Georgia Power is the only power company that I know in Atlanta.  I'm sure that there are others, but with a name like that it really evokes confidence.

Stay tuned for the next post: "Naming Your Startup: Niche Market"

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