Should You Use Your Own Name Or Create A Brand Name For Your Business?
Choosing a business name for your business is very vital, especially in this new generation. Many factors can be considered when one wants to choose a type of business name for his or her business. These factors are determined by parameters like what the business is selling or what perception it wants to create to the public and its customers. Business names tell what the business is about and does in just a few words.
Here are some of the insights that a business name might portray; first and foremost, it gives the business a sense of identity. Identity in that people feels the urge of associating with business names that tell about success.
Two, giving a business a name gives a new segment of value for the customers or prospective customers. What will one gain for going to a store with a certain name? What will I get from that business? What is in store for me if I walk into that supermarket?
Three, a business gains a platform for referral when a customer wants to come back again, or a new customer wants to get to your place of business.
There are many other more reasons that an entrepreneur should choose to have a business name for his or her business, including but not limited to differentiating between one business and another in case they are providing the same services. But the problem comes in what type of business name to choose for your business.
Business names can be narrowed down to two: using your own name for the business or using a brand name for your business. We will discuss the two in details.
Using A Brand Name
Under the brand name, we are going to look at the brief advantages and the disadvantages of using it.
There are several advantages of using, and we are going to list them down as follows:
- It attracts ideal clients for the business
Many people like business names that are very classy and decent, so using a decent brand name will attract clients that like that name or associate with that name. For instance, a brand name like Amazon, if you look up the meaning of amazon in Wikipedia, it means a member of a race that was very legendary who was a female and was a warrior by the ancient Greeks. So it implies that any person of Greek origin will be attracted to this kind of business or many female customers will feel at home associating with this kind of business or any person who considers him or herself as a legend will go to this kind of a business.
- It brings about consistency with the business
This is the quality of being the same at different times; this talks about firmness, especially when targeting the desired objectives of your business. A good example is the NIKE shoe company; its logo is a tick that portrays quality at all times since it was named back then until now.
- Branding your business brings loyalty to the business
creating a brand name that is unique and good creates a bond with the customers. This reinforces the buying of products in the customer’s mind, and also, when your product is associated with a certain lifestyle, especially lavish lifestyles, the customers keep coming back and creates recognition on a wide spectrum. For instance, a store named GUCCI STORE will get customers that love lavish lifestyle flooding it just because they are loyal to the Gucci brand.
- It gives credibility to the business
You having your own brand name for business gives you the quality of being trusted and believed in since you have full ownership. This makes it convincing and believable, hence more customers. It also fosters positive word of mouth and online recommendations, thus increasing brand awareness—your brand your credit.
- Leads to referrals
Brands are known to be unique and big, according to the consumer’s perspective. Many people nowadays are very much fascinated by branded products, and through this, your brand tends to be shared out, especially when one of your consumer’s or more shares it out, depending on how amazing your brand is. We call this the word of mouth process. Your consumers refer other consumers to where your products can be accessed from, and this goes round and round.
- It is easy to search
in the current world, to find a business that is located in a place that is unfamiliar, we use the internet to search for the location of the place. Keying, in the name of the business in the search engine, will automatically direct you to where the business is. And also, if you are physically around the place that the business is, asking people with the name of the business, it is easy to trace the location of the business.
- A catchy name leads to good memorability
if the service in your business was very good and the clients or the customers were satisfied with the type of service, it is the name of the business that they will remember first. The long term effect of this is that the reputation of your business will grow with time.
- It is a source of a motivating factor
you try heart and soul to make it long-lasting because it involves your emotions and efforts. So this will make you try hard enough to do all it takes to make it firm and work towards achieving the objectives and goals that you had set earlier; hence this will make you not deviate away from what you want to achieve. Also, for the employees, it motivates them to work harder enough in line with your goals.
The drawbacks of using a brand name can be felt, and it is not easy to avoid. Some are applicable to some types of business, and some can apply to specific ones. Here are some that I gathered:
- It is very expensive
Coming up with a brand name is very costly and involves huge development costs that are undesirable for the business at the early stage since it will require the company to use huge amounts of money and time setting up the name of the brand, balancing various facts, for instance, a name that will not offend the public and the one that will please you as the owner of the business.
- Changing the perception of the brand is hard
This will happen for instance, when a consumer accidentally or unwillingly gets a product from your brand or business delivered to him or her in a way that he or she did not expect or there was a mistake and mix upon how the products were delivered it becomes easier for the consumer to tarnish the name of the brand as a whole. This will lead to your reputation distracted and degraded, making you have thoughts of changing the name of the brand since it will be hard for you to meet your daily or normal targets because the consumers will rely on the information that was spread about the delivery. So making them change their mind about the products from pour brand be very difficult and costly.
- It has limited quality flexibility
In this world, a business should be flexible; if it is rigid, it will definitely fail. Changes that are rapid occasionally occurs in an organization, and this will definitely mean that if your business is best flexible, it will adapt to these changes, and it will give your massive business advantages over others. This can also be done by encouraging your employees to find new ways and ideas to carry out or doing better businesses since there are advantages that come with promoting flexibility.
Using Your Own Name
Here we are going to look at when one uses his or her own name for the business.
What will the advantages and disadvantages be?
I managed to collect the following advantages of using your own name
- It makes you the centre of the business
This is an advantage because things will run the way you want them to go. Also, the people who know you very well will definitely associate with your business. It also gives the owner a high profile if the business is doing well and fame too. All the characters associated with you will be associated with the business for a plus, for the business is a plus for you too.
- It increases a sense of connections
All the network associated with your business will be connected to you. So anywhere, it increases the sense of connections with them and anyone that will do business with you.
- Less costly
Your name could easily change without many costs since it does not require a lot of thinking and brainstorming, and it doesn’t need to be in line with your objectives and set goals as it in branding. It is very simple and straight forward while setting.
Using your own name gives the business a personality that goes hand in hand with your own personality
if your personality is a good one, the business will have a good personality; in short, you and your business become one entity.
Here are some limitations of using your own name
Using your name will not be unique because many people have names that are similar in nature, for instance, the Johnson and sons company. Many people named Johnson can use the same name to describe your business.
- Limitation of growth
This limits your scalability or scope more so when consumers have developed a relationship with you and not your business making you not meet your daily targets. For instance, you will be giving out huge credits to maintain a good name, yet it is harmful and leads to a great loss. Thus your business will be stagnant or never grows financially
- It makes you at the centre of the business
As we looked at this point as an advantage, it can also be a disadvantage in the sense that when your business has been tarnished due to the relationships with your consumers, it will affect your business will affect you both emotionally at a personal level. A loss for the business is a loss for you at the personal level.
Advantages Of Brand Naming Over Using Your Own Name
Using a brand name is more attractive than using your own name because your own name is simple and doesn’t require a lot of creativity and concentration since your name has always been there, but a brand name requires a lot of thinking artwork and considerations that are effective.
your own name can bring a lot of confusions and ambitiousness, that is, if somewhere has the same name and same nature of business like yours, whereas a brand name is unique and directly refers to a specific description that you want it to be.
Your relationship with the customers is separated and remains strictly professional
with time; hence it will avoid a lot of credits that will lead to your business having a loss.
It is clear that using your own created brand name is much heftier than using your own name, which is hefty in terms of investments and profit made by the end of the day financially. Ninety-nine per cent of the consumers around the world who have the urge of starting up businesses of their own choices prefer creating their own businesses through branding; the other one per cent isn’t much of consideration though with all that is in favour of branding of the business is quite worth convincing.
Nowadays, everyone prefers to have their own brands, it gives a person a good sense of belonging, and this is all that’s needed for today’s economy to rise.