Michelle Rodger: What's in a name? Lots of stress if you get it wrong

IT'S possibly one of the hardest elements of starting your own business: agreeing on the name.

Choosing the perfect business name can take weeks, months in my case; sleepless nights thumbing through the thesaurus, heated debates, creative blocks, then the Eureka moment, followed by the sheer frustration of picking a brilliant name only to discover someone else has beaten you to it.

Because it's not just about coming up with something catchy that "will do" until you get a bit bigger and can afford a brand consultant to do the hard work for you. Forward thinking is essential.

Ask the experts and they will tell you it is vital that the name and brand are aligned with the company's personality, goals and values both at the start-up stage and, equally importantly, for the future.

If a company has a plan to grow rapidly or retain an exclusive personal feel, explains Ashley Menzies, then the name and style of brand should reflect this and allow the business to grow into it in the short, medium and long term. Forward thinking, says the Designline Creative co-founder, is key at this stage.

The reason it's so important? Not only is your name the first thing potential customers will know about you, but name, logo and brand can now be represented on your balance sheet as an asset, and the very best could potentially add considerable value to your bottom line – essential if you're considering rapid growth, expansion or even a trade sale.

"If the research at the planning stage is correct, visions are clear and people have been involved, including customers, then in our opinion it is hard to get the name and brand wrong," says Menzies.

So how do you choose? Do you go for abstract or factual? Or even humorous? Intrigue works well and is also more likely to get a trademark. But if your name describes what you do, Google will find you much more quickly. You need to decide what's more important.

Humour has a very emotional pull and can also be very effective – just look at Effin Computers, a PC repair company, or Many Happy Returns, a firm of tax accountants. But the joke has to travel for it to be effective. Bawbags is a range of men's underwear that will make many a Scotsman or woman laugh, but south of the Border or abroad? Not so effective.

There are key elements to the naming process that could help ease the path. Firstly, put together a shortlist and run it by some friends.

Try saying the names out loud, something that reads well on paper might be difficult to say. Check names using a dictionary and a thesaurus; they may reveal additional definitions or associations you might not know which could affect people's perception of who you are and what you do. Likewise, be careful with abbreviations and acronyms.

Use a distinct name. Don't try to use a name similar to that of another well-known business; they may come after you for trademark infringement.

Check that the internet domain name is available – preferably both .co.uk and .com. Register it and then consider your own trademark protection.

Ultimately, it's important for the owner to be an ambassador for the brand, to feel both at ease with and proud of the name and to ensure you can deliver everything your name and brand promises to your customers.

As Morag Malloy of Fission Creative says, we all know in business it's vital to deliver on your promises, but what that means in terms of a business name is that it has to be a true reflection of the company's corporate character and its service or product. The client's interaction with the company must support the initial impressions.

"If the customer's experience doesn't live up to the perception created by the name then it's a fail," warns Malloy.

Which brings us to getting it wrong; it could cost more than you realise. If someone doesn't know what you do, then that's a missed business opportunity. If you're not memorable then that lack of distinctiveness in the marketplace and amongst the competition could also lead to missed opportunities.

Helen Livingston of the Branding Boutique explains getting it wrong means that you don't get any business – or you don't get the right kind of business. It's all very well having a shop that's constantly teeming with people, but if your shop sign looks like you sell suits and you're actually a fancy dress store, those potential customers will head straight back out.

"Worst of all is the possibility of legal action from someone who thinks you are infringing on their trademark," she adds.

Errors are clearly costly, but it's not all bad news. As Livingston says cheerfully, love your brand and it will love you back. Invest in it and it will invest right back in you.

Client confidence in a brand and how it is presented greatly assists companies in their growth and, most importantly of all, positively impacts on the bottom line.