Naming Your Business

Summary

What to Include in a Name

A good business name can act as an effective advertising tool by communicating something about your business every time it is mentioned. For example, a good name can help customers understand what it is that your business does as well as force you to focus your businesses purpose.

When naming a business, a number of different factors should be taken into account:

• is the name chosen appropriate for the market you are targeting?
• is the name short?
• is the name easy to remember?
• is the name distinctive enough to separate you from competitors?

Who Are You Selling To?

Industrial Clientele: A strong, descriptive name may be used to provide potential customers with a clear understanding of what your company does (i.e. Jet Blast Inc., Noise Cancellation Technologies Inc., etc.).

Consumer-Oriented Clientele: Any business owner knows that competing with other businesses for clientele is difficult. Therefore, choosing a name that brings a lasting image to mind may be profitable (i.e. Titanic Salvage, Timbuctu Tours, Sahara Sandblasting, etc.).

How to Proceed with Naming Your Business

Choose a few names that fit the image you want to create. Test them out on friends, family, and potential customers. Try some names that are strong on imagery, others that are strong on description, and still others that fall somewhere in-between. Pay particular attention to testing your business names with people in your target market - the core consumer groups whose patronage you intend on capturing. Have these people write down their impression of what the business would sell, how it would be run, etc. Compare their thoughts with your own.

When registering your new business name, a fee will be charged to ensure that your business name shall only be available for use by you for advertising, signage, and legal purposes. You will be required to specify the type of business organization (sole proprietorship, partnership, private corporation or cooperative).

For some businesses, a Canada-wide name registration is preferable. Information on this may also be obtained from your local Canada Business service centre.

The Bottom Line

A good name provides the customer with a description of your business. Whether the name uses a straightforward description or imagery to create an aura, ultimately, it should answer the customer's question: "What can I expect?"   

Prepared by: Saskatchewan Industry and Resources, Business and Co-operative Services