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The 7 Steps to Starting a Business (Step One: The Name)

Oct 20, 2008
Business Startup
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This week, we are going to do a series of posts exploring the decision to start a business.  Although you can get incorporated online in a matter of minutes in most cases, this is a major decision and can have huge financial impact so you want to make the best choices. 

Most things are not set in stone and can be changed, so don’t let the fear that you will make a mistake stop you from taking action…

Step One: Picking Your Business Name

Although the name is NOT the most important thing, it is an early step. The reason for this is that you need to pick a name that you will not outgrow as you build the business.  The process of picking a name causes you to consider the logical growth of the company so it is a good place to start.

Please DO NOT get bogged down at this point in such mundane tasks as designing logos and business cards, etc.  There will be time enough later for this (maybe) and too many people starting businesses get bogged down in this relatively low value activity because it stokes their ego…

To pick a name…

1.      Define your initial product or service in a reasonable amount of detail.

2.     Make a list of the areas that you think will differentiate your product from the competing products.  The “Benefits” of doing business with you…

3.     Try to look into the future five to ten years.  Have an idea of the overall scope of the business you are intending to build. If you know your first product or service, think about what the logical next product, and the one after that, and the one after that…  You should try to come up with a business name that encompasses the complete product line that you plan to provide in the longer term…

4.     Brainstorm name ideas, combining your products and services with the benefits that you are going to provide.

5.     When you have some proposed company names, then check google to see if there are any other businesses that already come up when you search on the name.

6.     Check on your state’s Secretary of State website to see if the name is available. 

7.     Check on godaddy.com or another domain name registration service to see if the website is available. 

8.     If you can find that there are no other major conflicts and the name is available and the website is available, then you are ready to move on to the next step which is to determine an initial budget and revenue projections.

To be continued with Step 2: Forecasting Your Business Revenue and Expenses

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21 Comments
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19 Comments

  1. Steve ChambersNo Gravatar (103 comments)  •  Oct 20, 2008 @12:12 pm

    This is good advice on choosing a name. It would be nice to include a piece on using a DBA, since this gives us greater naming options.

    Steve
    Sales and Leadership Consultant

    Reply

  2. LenaNo Gravatar (39 comments)  •  Oct 20, 2008 @2:03 pm

    Very good and informative post.I’m going to print it out.
    I like your statement:”Most things are not set in stone and can be changed, so don’t let the fear that you will make a mistake stop you from taking action…”That’s what stops a lot of people.
    Reading and Decoding Body Language

    Reply

  3. John Ho (86 comments)  •  Oct 20, 2008 @6:32 pm

    What’s in a Name?

    To Pure Numerology, the most important is the DATE of incorporation as it’s the enterprise’s birth date.

    But the name itself or even its symbol / logo is still important. Look at IBM’s logo. How many trips there? What’s its significance?

    John Ho
    Understanding Personalities for Better Influence & Persuasion

    Reply

  4. Scott A BellNo Gravatar (27 comments)  •  Oct 20, 2008 @8:37 pm

    Great post Rob,
    Good advice about the name and things not being set in stone. This is where Steve’s comment about the DBA comes into play. DBA = Doing Business as. Your Corporation can choose to do business as another name as long as the proper documents are filled with your state.

    Scott

    Reply

  5. David J. ParnellNo Gravatar (38 comments)  •  Oct 20, 2008 @9:25 pm

    Hey Rob,

    Great process for choosing a name… I think most people just kind of grad what sounds good to them… A name communicates so much about your company… As such it is important to choose a good one… Your post is practical.

    David J. Parnell | Communication Expert
    The Effective Communication Blog

    Reply

  6. Robert KauferNo Gravatar (24 comments)  •  Oct 20, 2008 @10:08 pm

    Rob,

    Good post. Another option if you want to get going with the incorporation but cannot arrive at the perfect name because you are still defining your product or niche, is to pick a generic corporate name that will never be seen to the public. i.e. Acme, Inc.

    With this name get all of your initial paperwork done, and order Corporate Veil Pro so you know what to do to keep your limited liability.

    Now once you decide on the direction for your company, you can get one or more assumed names. These may be called a dba in your state. The great thing about dba’s is that you can have as many as you want and you don’t have to have the corporation designation (Inc., Corp, Ltd.) after it. Each state has different requirements for getting a dba so make sure you check your states incorporation statutes.

    Learn How To Be a Do It Yourself Lawyer

    Reply

  7. Robert KauferNo Gravatar (24 comments)  •  Oct 20, 2008 @10:09 pm

    Rob,

    I tried to imbed links in the post above but failed miserably. Please help me if you have time.

    Bob

    Reply

  8. Matthew ShieldsNo Gravatar (36 comments)  •  Oct 20, 2008 @10:28 pm

    Hi , Rob
    Great information. Choosing a name dosen’t need to be difficult with your process
    Happy Trails
    Matthew Shields
    Hotel Resort Energy Management
    Anything Solar

    Reply

  9. April BraswellNo Gravatar (73 comments)  •  Oct 21, 2008 @2:28 am

    Hi Rob,

    This is another simple AND superb post.

    I think so many of us who were not previously business owners run into so much mental, all those fear blocks, when we start circling towards actually STARTING (gasp, gasp) a business.

    And your pragmatism and clarity GUIDES them right into by helping them (us) to keep our focus upon what is essential.

    and to refrain from focusing upon the distractions.

    Excellent!

    Great relationship building. I truly appreciate it. It is helpful for online and F2F models.

    All the best,

    April Braswell

    Online Dating Coach, Romance Coach, Relationship

    Online Dating Sites Review, Internet Dating Sites Guide

    Reply

  10. Cindy EyansonNo Gravatar (36 comments)  •  Oct 21, 2008 @2:42 am

    Great post Rob! Your information is so useful to all of us getting out of the hamster wheel!

    Cindy

    Reply

  11. Philip GravesNo Gravatar (52 comments)  •  Oct 21, 2008 @2:47 am

    Great advice. I particularly endorse your point about not letting a business name be potentially self-limiting.

    Reply

  12. Lisa McLellanNo Gravatar (90 comments)  •  Oct 21, 2008 @10:17 am

    Excellent advice Rob, and Steve had a great comment as well. I will keep these in mind for naming my next business! :-)
    Lisa McLellan
    Babysitter Tips

    Reply

  13. Jennifer SkinnerNo Gravatar (42 comments)  •  Oct 21, 2008 @11:42 am

    This is great information, Rob, and a great idea for a series.

    Jennifer Skinner
    Wardrobe Planning Expert

    Reply

  14. kevinNo Gravatar (7 comments)  •  Oct 21, 2008 @2:23 pm

    hey rob
    great job in vegas!
    http://www.kevinhogn.net
    kevin

    Reply

  15. Craig ErnstNo Gravatar (8 comments)  •  Oct 21, 2008 @4:57 pm

    Great advice, Rob.. I’m really looking forward to this series. So many “how to start a business books” get so deep into the formalities early on, that the new business owner is worn out before they get to the most important stuff. You know, like, um… oh yeah, how to generate revenue and manage cash flow!

    Craig Ernst
    http://RealEstateSuccessPath.com

    Reply

  16. JenyaNo Gravatar (6 comments)  •  Oct 21, 2008 @6:32 pm

    Really good and useful information. Thank you.

    Reply

  17. Intuitive JohnNo Gravatar (31 comments)  •  Oct 21, 2008 @7:15 pm

    You got me thinking here. Very helpful stuff. Takes the anxiety out of picking a name…a kind of stress free checklist for names.

    Intuitive John Shoemaker
    You Can Have Peace of Mind and Happiness In Your Life!

    Reply

  18. SheridanNo Gravatar (4 comments)  •  Oct 21, 2008 @11:08 pm

    as easy as following the recipe.

    Sheridan

    Reply

  19. Max SoutterNo Gravatar (2 comments)  •  Oct 25, 2008 @8:40 am

    Good post indeed.

    Have to say i disagree with the comment about business cards
    being low leverage activities. When used right, like any marketing piece, they can be very powerful.

    Nonetheless, your business name is the begining of your marketing process. in my experience (200 or so businesses to date), a name can make alot of difference.
    Consider the SEO implications for instance. Have a name with a strong product or benefit association can make a massive difference to your google rankings.

    Even offline, you’ll find it more easier, cheaper and faster to build a brand when you’ve chosen a good name. Here’s what i consider…

    a) product/ benefit associaltion
    b) easy to pronounce and spell
    c) memorable
    d) unique as possible
    e) short a possible.

    Ofcourse there’s also the trap of spending too long on a name…

    Max Soutter

    Reply

    Rob NorthrupNo Gravatar (84 comments) Reply:
    October 27th, 2008 at 3:01 pm

    Max, glad to see the comment…

    The comment about the business cards was intended to say that many people get really bogged down in this as a creative project too early in the game.

    Many of the best business minds I know don’t even have a card.

    I agree that the name is critical, both from an SEO and a customer top-of-mind positioning standpoint.

    Great comment, Thanks.
    Rob

    Reply

    Max Soutter (2 comments) Reply:
    October 28th, 2008 at 6:29 am

    No prob Rob.
    You’re right. I know i used to make that mistake a lot. I’ve found with the entrepreneurs i speak to, this mistake is more often fear than ignorance.

    What i mean is that some people spend alot of time doing activities to feel busy and feed the idea that they’re progressing on their dream. This is significantly easier than going out there and closing sales, setting up JVs and so on – the stuff that really gets results.

    Thanks for the great post.

    Max Soutter

    Reply

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