This article are provided for information purposes only, and are not intended as legal advice.


What is in a name?

February 27th, 2009

Is the name of your business unique?  Does it describe what you are doing?  Are you operating your business as a numbered company?  Many people do not like numbered companies if they are used as operating company.  You can be a numbered company operating as another name such as a franchise.  However, if you are an independent, the first thing that comes to my mind is why do you have a numbered company, what are you hiding?  It raises questions and people go by their gut feel and may think twice about doing business with you.

 

Many companies have gone bankrupt and start all over again.   Many people stick a date in the company name because they can no longer use the exact name of the bankrupt firm.  When I see a name such as ABC 2000 Company Ltd, the first think that comes to my mind is that this company was not successful in the past and may have gone bankrupt.  If you just went bankrupt, do I as a customer still want to do business with you?  How will I know that you will be able to deliver if you failed in the past?  As a supplier, if I lost money with you last time, why do I want to give you credit again?  These are some of the issues if the owners continue a business after the predecessor firm has gone bankrupt.

In summary, pick a name wisely.  Many people will get a negative first impression of you if they do not like your company name or the company name implies that you have resurrected the company from bankruptcy and are trying to make a go of it a second time.  If you were not successful the first time, will a brand new customer give you a second chance?  Many will but some will not.  The name could scare away a potential customer.


Filed under: Starting a business — Gary Landa @ 9:54 am


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