If a company plans to focus on a particular type of customer, its name should reflect the attributes of its clientele. For example, a clothing store that specializes in small sizes for women is called La Petite Femme. Similarly, an online store that sells clothing for big and tall men and boys is named Big and Tall Guys. A company that installs cameras in day care centers and allows parents to log on to a password-protected Web site to see their children during the day is called ParentWatch. These companies have names that were chosen to appeal specifically to their target market or clientele.

If a company plans to focus on a particular product or service, its name should reflect the advantages that its product or service brings to the marketplace. Examples include 1-800-FLOWERS, Whole Foods Markets, XM Satellite Radio, and Jiffy Print. These names were chosen to reflect the distinctive attributes of the product or service the company offers, regardless of the clientele.

If a company plans to focus on a broad range of product or services in a particular industry, its name should reflect the category it is participating in. Examples include Sports Authority, Bed Bath & Beyond, Toys R Us, and Home Depot. These companies have names that are intentionally broad and are not limiting in regard to target market or product selection.

Some companies are founded by individuals who put such an indelible stamp on the company that it may be smart to name the company after the founder. Examples include Charles Schwab, The Trump Organization, Calvin Klein, and Magic Johnson Enterprises. These companies have names that benefit from a positive association with a particular person or distinctive founder. Of course, this strategy can backfire if the founder falls out of favor in the public’s eye.

There are also some general rules of thumb for naming a business. Select a name that is easy to spell, easy to pronounce, and doesn’t limit the future expansion of the business. For example, a name like Sally’s Sewing Supplies isn’t a good choice. It’s easy to spell and pronounce, but at some point the business might want to expand beyond sewing supplies. Once you settle on a name, you should contact the Secretary of State’s office in the state where you’re located to make sure the name is available. If it is, you should reserve it in the manner recommended by the Secretary of State. You should also trademark the name. Information about how to trademark a business’s name is discussed in Truth 35, “Trademarks: An essential form of protection.”

Select a name that is easy to spell, easy to pronounce, and doesn’t limit the future expansion of the business.

A final factor to consider in selecting a name for a business is whether its Internet domain name is available. This can be a frustrating endeavor, because the majority of the most obvious names have already been taken. If the name you’ve chosen for your business isn’t available, don’t panic. A little ingenuity can go a long way. You can normally either tweak the name of your business or your Internet domain name to make things work. For example, suppose you have decided to open a restaurant that will feature low-fat dishes and have settled on the name Healthy Options. You check and find that the Internet domain name www.healthyoptions.com is taken. You don’t need to give up on the Healthy Options name. You can vary the Internet domain name as long as it makes sense. For example, at the time this book was written, the Internet domain name www.healthyoptionsrestaurant.com was available—a perfectly acceptable Internet domain name for your business.