Choosing a Good Business Name

This is usually one of the "fun" parts of starting a business.

The commercial name by which your business in known in the marketplace can be a trade mark, business name, company name and related internet domain name.

Choosing the right name for your new business, company or selecting an Internet domain name distinguishes your products and services from your competitors. You are creating an identity that should be memorable and meaningful.

There are a number of things you should consider when choosing a suitable commercial name:

• If you intend to start a lawn mowing business, you'll probably promote your business with a sign-written trailer and by advertising in your local paper. In this case, you'd probably only register a business name in your own state. The words "Lawn Mowing" should be a predominant part of your business name.
• If you were going to start a chain of discount petrol stations, you'd rely on attracting passing traffic rather than by advertising, so you'd probably choose a short name (eg. Mobil, BiGas, Zoom) that will eventually become a recognised "brand" name and register it as a trade mark.
• Including your own name can have advantages and disadvantages. If you promote yourself as the "face" of your business, it can have a positive effect by building trust in you and your business (providing you have a good reputation). Many people have done this successfully including Dick Smith, Sydney's Bedding and Bob Jane T-Marts. This "identity" type marketing is usually most successful when used by large companies in conjunction with TV or radio advertising. The person's name becomes a "brand" name over time and the actual person becomes less important. However, with a small local business, it may be an objection to a potential buyer if you ever decide to sell your business or if you want to take on a partner.
• A name starting with "A" usually gets listed first in directories. Potential customers are less likely to look through all the listings down to the letter "Z". This is usually only important to those businesses that intend to get most of their customers from directory advertising.
• If you're going to operate nationally, you need to register your business name in all states or register your trading name as a trademark.
• If you are going to have a website, your internet domain name is usually derived from your commercial name. eg. the Victorian business name "Overboard Designs Joinery & Gallery" became the Australian internet domain name "overboard.com.au". Domain names should be short if possible. Make sure your desired domain name is available and can be derived from your desired business name before you register them.

A name should be easy to remember and relate to your type of business. Depending on the size of your business, it should become an integral part of your business "image".

In Australia, business names are administered by the local Business Names office in your State or Territory. This usually comes under the local Office of Consumer & Business Affairs.

If your business operates across multiple states or territories and if your "brand" is important to you, then your business name, company name and domain name are better protected when they are registered as a trade mark. If your new commercial name is identical or similar to another person's registered trade mark, you could be sued for infringement.

Commercial names can be trade marks, business names, company names and domain names. This can be very confusing so it's important to know the difference and get professional advice if you need it.

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