When forming a limited company, selecting the right name is a crucial decision. Some business owners might choose the first name that comes to mind, while others may opt for a ready-made company name to save time or because they like its sound. However, many entrepreneurs prefer to choose a name that sets their business apart from competitors or reflects something unique or personal. Company names can be chosen for various reasons, each with its own advantages and challenges.
Personalized Names
One of the most common ways to choose a company name is by using something personal. A quick glance through your local newspaper will reveal many businesses with personalized names like “Johnson Consulting Limited,” “T. Smith & Son Limited,” or “Stephens & Barley Limited.” Such names often help make a company easily recognizable in the local community, and they can feel more personal and relatable to customers. They also work well in smaller geographic areas. However, the downside is that personal names don’t necessarily communicate what the company does, which can be a drawback for attracting new customers.
Descriptive Names
A popular choice, especially for small businesses, is a “descriptive” name. This type of name directly conveys what the business does, making it clear to potential clients. Examples include “The Window Company Limited,” “City IT Consultants Limited,” or “The Advertising Agency Limited.” While these names make the company’s services clear, they often lack differentiation and can be easily copied by competitors, making it harder to stand out.
Associative Names
Another option is an “associative” name, which creates an image or association related to your business. These names are less direct than descriptive ones but help position the company within its market by leveraging common associations. For example, a hair salon named “Classic Cuts” or a printing business called “Selectaprint Limited” may give customers a sense of what the company does, while still offering some differentiation. However, while these names are unique, they may not always distinguish your business enough from competitors.
Freestanding Names
The final option is a “freestanding” name—completely abstract and unrelated to the company’s specific activities. An example might be naming your catering business “Zedoc Limited.” Many successful brands, like “Kodak,” “Gillette,” or “Mars,” use freestanding names. These names help the company stand out by being distinct and memorable, but they also carry the risk of leaving potential customers uncertain about the business’s offerings. It’s important to consider your target market—will your prospective clients immediately understand what your business is about?
Making the Right Choice
Choosing a company name can be a simple process, but it often requires careful consideration. While company names can be changed later, most people prefer to select a name they are happy with from the outset. When choosing a name, consider your market, how much you want to differentiate from competitors, and what you want your company name to communicate about your brand. Once you’ve settled on a name, it’s time to focus on building your business and making it a success.