The only true asset most VARs own is their company's name. It carries the goodwill that follows the business. Employees may come and go, and desks will wear out, but the name stays with the business-or should. But how much thought goes into picking a company name? How many VARs pick a name that simply suits their vanity or is so common, so similar to every other VAR, that it makes it impossible to distinguish what the company does or the business advantages it offers?
Larger companies spend considerable amounts of money finding the right names for their products, services, and business as a whole. They go through multiphase marketing strategies to come up with that perfect name. But small VARs can do the same. Think about some of the product or business names you come across on a daily basis. Some of these names are meaningful within the industry. They tell the customer what the business does or who they are. Some names just sound good. Others play off popular themes or concepts.
What's in a name? A company name represents the core of what a company is-to its customers, to its vendors and to its employees. Many a company has changed their corporate slogan and even their corporate names to more clearly identify themselves within their businesses sector. A business name can be used as an asset. If it is constructed properly, it becomes both a tangible and intangible asset because it is synonymous with the business. Think of it as a trademark.
Is there a magic formula to creating a brand or company name? Not really. But what you should do is try to find a name that fits your mission statement, the reason why you are in business. You should also keep in mind whether or not you will be able to trademark that name.
I have two companies, one with a so-so name and one with a better name. Let's use them as examples-SBA * ConsultingŪ and SBA.NET.WEBŪ. You will note that they carry the Registered Trademark symbol. This means that I own these names throughout the United States and no one else in the computer industry can do business with these names. By trademarking them, I have developed a tangible asset! It's hard to guestimate its worth in hard dollars. But the names definitely are assets to my businesses.
Now if the company name were Microsoft, it would be worth billions. But as John Lovitt's character, the compulsive liar from the NBC show "Saturday Night Live," would say, "Hey, they stole it from me-yeah that's right-I thought of it first!" However, neither of my companies' names include Microsoft. So how did I take the first company name I owned, SBA * ConsultingŪ and make it better?
When I first went into business, my market niche was small start-up companies. What federal agency deals with the start-ups? Yep you guessed it-the Small Business Administration. Now, I could have called my company Spivak Consulting, or WBS Consulting or some other vain name that was a variation of my own. But I chose to play off a the federal agency which reflected the kind of business I did. I also developed a slogan, because everyone wanted to know what SBA stood for-nothing. The company slogan was "Small Business Accounting & Computer Systems."
Through the years, my practice has moved to larger companies and other aspects of consulting. Not wanting to change the company name, I changed the slogan. It now reads "Systems for Business and Accounting." I now cover my marketplace with my slogan.
I found an even better name in SBA.NET.WEBŪ. It tells the customer immediately that I have something to do with the Net and the Web. Again, I used a slogan to clarify: "Internet and World Wide Web Consulting." It says it all.
First impressions are usually the most important, and the first impression a business gives to potential customers is its name. A well-conceived business name will be worth more in advertising. It will also be worth more on the bottom line. Protection of your company name as an asset is paramount, so acquire a trademark on that company name. The cost and effort is well worth it.