Many small business owners who are just starting out with their companies have a lot of things to keep in mind when it comes to getting everything to do with their companies all set, but one thing that can be of the utmost importance is actually as simple as choosing the right name.
In general, the idea of a well-named business is one that might not occur to many entrepreneurs as being extremely important to their future success, but it is, according to a report from the Richmond Times-Dispatch. The fact of the matter is that this is how consumers are going to come to know them, and what they will associate with the kinds of goods or products they provide. Therefore, when choosing a name, it’s often wise to try to strike a balance between its being descriptive and unique; going too far in one direction or the other can lead to a name that’s either too forgettable or too outlandish.
“We knew we had something special in the name, so we needed to own it,” Alex Wotring, co-founder of Belle Isle Craft Spirits, told the newspaper. “That need justified the resources we spent up front with a lawyer, because one thing we wanted to avoid down the line was changing our name and creating brand confusion.”
Why that would be a problem
If companies end up having to change their names while they’re still in business, that can lead to a lot of confusion among both current and prospective customers or clients, the report said. For example, if a company has been operating for several months or more under one name and finds out that a company in the same field has a similar name, or even the same one, changing can lead to a lot of confusion and potentially lost business. In addition, there could be a significant loss of funds simply because of the expense of changing logos, signs, and so on.
Owners worried about any aspect of their bottom lines, though, might want to consider ways in which they can save money on their annual expenses, and that includes shopping around for more affordable small business insurance. Taking the time to find more affordable commercial insurance or errors and omissions insurance, for example, could save many independent companies thousands of dollars every year.