Step #6 of my Top 20 Tips for Small Business Start Ups sounds like the easy one. You've probably had a name in your head since day one. But before you print the business cards, there are a few checks that could save you a lot of heartache (and money).
Let's look at choosing a name, checking nobody else is using it, and what "registering" actually means, because the answer depends on how you set up.
Choosing a name that works
A great business name does a lot of heavy lifting. Before you fall in love with one, run it through these questions:
• Is it easy to say and spell? If you have to spell it out every time someone asks, it's costing you customers. Try saying it over the phone to someone.
• Does it say what you do, or at least not clash with it? Clever is fine, but if nobody can tell what you sell, you'll need to work harder on marketing.
• Will it still fit in five years? A name that's tied to one product line, one place (e.g. “of Redhill”) or trend can box you in if you really want to grow.
• Is it different enough? If it's very close to a competitor's name, customers will mix you up, and you could get into legal trouble.
• Does it work online? Check whether you can get a matching domain name and social media handles. A name is much less useful if the website address is taken.
Shortlist three to five names, then test them on a few people from your target audience, not just your nearest and dearest.
Check nobody else is using it
This is the step people skip, and it's the one that can hurt. Here's how to check:
1. Search Google and social media for your name and close variations. Look at who comes up and what they do.
2. Check Companies House. If you're planning a limited company, you can check whether your company name is available, and GOV.UK has the rules for choosing a company name. Even sole traders should have a look to avoid picking something an existing company already uses.
3. Search the trade marks register. The Intellectual Property Office has a free trade mark search that lets you check whether something identical or similar to your brand is already registered. If it is, you could be forced to change name later, after you've spent money on branding.
4. Remember to check domain names and social handles before you commit.
Even if a name isn't a registered trade mark, someone who's been trading under it for a while may still have rights in it. When in doubt, get advice. The Business & IP Centre offers free help and guidance on protecting your ideas and brand.
What does "registering" mean?
This is where people get confused, because it depends on your business structure (which we'll look at properly in Step #11). The short version, based on GOV.UK's guide to setting up a business:
Sole trader
You can start trading straight away and don’t need to register
You can use your own name or choose a trading name
What do you register?
You must register for Self Assessment with HMRC if you earn more than £1,000 in a tax year (you can register earlier if you like)
Limited company
You must register the company before you start trading
There are rules to follow when choosing a company name
What do you need to register?
The company itself, with Companies House
Beware of the scams
Sadly, the moment you register a business, you can expect some dodgy mail. Companies House and the Intellectual Property Office have joined forces to warn businesses about unsolicited payment requests. If a letter or email demands payment for "registering" or "renewing" something, stop and check it. Official registrations go through GOV.UK, not through random letters.
Don't forget about your trading name on paper
If you trade under a different name to your own, make sure it's used consistently on your invoices, website and contracts, and think about whether customers will be able to work out who they're actually dealing with. That includes how your name appears on your bank account (we'll cover that in Step #10).
So what to do now
Remember, you don't have to do everything today!
• ☐ Shortlist three to five possible names
• ☐ Say each one out loud and test it on a few people
• ☐ Check Google, social media and domain availability
• ☐ Search Companies House and the trade marks register, if applicable
• ☐ Make a note of which structure you're leaning towards, ready for Step 11
Stuck on a name?
Naming a business is hard when you're too close to it. If you'd like a fresh perspective, book a call with me and we'll test some ideas.
Next up in the series: Step 7, Build a Brand Identity. Now your business has a name, let's give it a personality.
