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Your New Business Name Should Be Memorable, Spell-able And Available

Follow these five tips to settle on what is one of the most important aspect of a new company – its name.

Nellie Akalp

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During the crazy journey of launching a business, no decision is more agonising than finding the right business name.

In most cases, business owners have a firm grasp of the brand message they want to convey. However, trying to distill that message into a memorable, easy to say and easy to spell name is no easy feat.

On top of branding issues, the name has to be legally available to use – even though it feels like every good name was taken a decade ago.

Throughout the process of helping small businesses get their start and working with incredible small business owners, I have seen many entrepreneurs take thoughtful and effective approaches to naming their business.

Related: Business Name Brainstorming Worksheet

If you are starting a new venture this year, here are a few tips to keep in mind as you start to brainstorm and vet potential names.

1. Know your brand promise

Don’t get too bogged down with what your product does. Instead, ask yourself how you want your customers to feel. It’s those feelings that represent your brand promise and create a deep emotional connection with customers.

You can start by creating a mind map of all the concepts related to your business: descriptive words, emotions and experiences you’ve felt or want your customers to feel.

The founders of Wood Ranch BBQ & Grill restaurants spit-balled ideas by writing concepts down on cocktail napkins over beers.

“We ended up with ‘Wood,’ since we grill our core items over a wood fire, and ‘Ranch’ because we wanted the brand to be all-American, approachable and timeless,” said co-founder and co-CEO Eric Anders.

2. Pick something that’s easy to say, spell and remember

Obviously, new customers will need to be able to remember your business name and type it into their search bar correctly.

If your name is overly complex for example, it incorporates your last name, tricky spellings, abbreviations, numbers, etc. – this can be a problem. GotVMail, a virtual phone solution, changed their name to Grasshopper, to make it easier for potential customers to understand and spell.

“We do radio advertisements, so it’s important that people understand our name right when they hear it,” they wrote.

3. Survey your potential customers

Once you’ve narrowed down potential names to a few options, try them out on your target market. Be sure to get feedback from people other than close family, friends and co-founders who are already familiar with your budding business.

It’s important to learn the impact of a name on people who don’t know anything about your products or service.

Rachael Miller, designer and founder of Go Sports Jewelry, wanted a name that stood out and was easy to remember.

As she was deciding on the right name, she surveyed NFL wives with three different options, asking which name they gravitated towards, which best described her jewelry designs and which name they would remember if they heard it in a loud environment.

Related: How to Name a Business

4. Don’t narrow your focus too much

business-focus

A common naming mistake is to focus on a name that reflects what your business does now, rather than where you plan to go. Avoid picking names with a specific geographic location or product categories that wouldn’t allow you to expand your product line.

When choosing a name for her freezable lunch bag business, PackIt CEO Melissa Kieling wanted something that could scale with the brand. As Kieling explained, “Our product incorporates a proprietary technology, so we were tempted to use freeze or some other word that suggests cooling. But, my vision is much bigger than cooling.”

5. Make sure the name is available and trademarkable

This may be an obvious point, but before settling on a name, you’ll need to make sure it’s legally available to use, offers a suitable URL and can be trademarked. This process involves three basic steps.

First, check the availability of your proposed name in the state(s) where you’ll be operating to make sure there isn’t already another business with the same name registered there.

To do this, you can contact your state’s secretary of state office (some states offer an online searchable database).

You can also have an online legal filing service handle this for you, but many sites will perform this basic search for free.

If the state name search comes up clear, the next step is to check out the Patent and Trademark Office to see if anyone has an approved trademark or pending application for your proposed name in a similar capacity.

Finally, you should conduct a comprehensive name search – either through an online service or a lawyer – to see if anyone is using your proposed name at the state or county level and didn’t register with the state as an LLC or corporation.

Related: Choosing the Best Name for Your Business

If all your name searches come up clear, you’re ready to move ahead and put your branding efforts into full gear.

From a legal perspective, don’t forget to register your name with the state and apply for a trademark. After all, you’ve most likely invested countless hours finding the right name – you’ll want to make sure it’s yours to use for years to come.

This article was originally posted here on Entrepreneur.com.

As CEO of CorpNet.com, a legal-document-preparation filing service, Nellie Akalp helps entrepreneurs incorporate their business, form a limited liability company, set up a sole proprietorship and comply with state filing requirements.

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Start-up Advice

(Podcast) Playing To An Audience Of One

When you’re starting out, you’re often playing to an audience of one.

Nicholas Haralambous

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When you’re starting out, you’re often playing to an audience of one. No one knows who you are. No one understands what you can give them. You need to really, really believe enough in what you’re doing to play to an audience of one until you can build up traction. Don’t give up too soon.

Listening time: 3.25 minutes

Related: (Podcast) What You Buy May Not Be What You Need

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Start-up Advice

Your Questions Answered With Alan Knott-Craig

Which comes first, customers or revenue? To make revenue, you need customers. Here’s how you build a business that people will care about.

Alan Knott-Craig

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How can I start a small Internet service provider ISP business? — Tonderai

This is similar to the hoary chestnut, “How can I take over the world?” The answer is the same. Sit at the knee of a master for two years (at least) and learn the game. When you have a sufficient network of contacts, and understanding of the business, head off on your own. How do you find a ‘master’? Identify an ISP that appeals to you. Get your foot in the door somehow, even if it’s just making coffee. Work your way to as close to the CEO’s door as possible by continuously over-delivering. Learn like a sponge.

The possible alternative to ‘find knee of master’ is to find a technical guy with zero sales inclination. Make him your partner. You become the front office (sales — find customers). He becomes your back office (tech — product delivery). If you can’t find a master or a tech partner, you can’t start an ISP.

Related: Want To Leave Customers Grinning And Vowing To Return? Do The Following

How do I find a co-founder? How do I find a development team? — Kirsten

For a technical co-founder, Tinder is best. Jokes. In fact, Tinder is the last place on earth to find a technical co-founder. Rather try family and friends. Conferences. University. Milk your networks by letting everyone know that you’re looking for a technical co-founder. Failing that, you must hire a development team.

The days of compensating software developers with equity in lieu of cash are long gone. Absent a technical co-founder, there is only one way to develop software: Pay for it. How do you find the right dev-house?

Word of mouth is best. The rules of thumb are:

  • Maximum project duration = three months.
  • Scope it once. Don’t change the scope.
  • Keep it simple.

For your first iteration, it usually makes sense to go with a young and relatively inexperienced crew (try www.avochoc.com). Yes, the product will not be future-proof, but your first version need not be future-proof. You just need something to start signing up customers and getting market feedback.

If you get traction, then you can start worrying about scalability and consider engaging with more experienced (and expensive) dev-houses.

I have invented a hamburger roll that ensures the patty and toppings cannot escape. Would you suggest I patent it?  — Albert

Interesting idea. From the photos, it seems your solution is a variation of a pita bread. It may be worthwhile reading Zero to One by Peter Thiel.

He argues that consumers will always resist change, even change that is very obviously good for them, ie: non-leaking hamburger rolls. The only way to introduce innovation into an established market is if it represents a minimum of 10x improvement over the status quo. Only such a quantum improvement will induce people to change behaviour.

Although undoubtedly a big improvement, I’m not sure the non-leaking hamburger roll qualifies as 10x innovation. And so it probably will not succeed in the market place.

Before patenting, I suggest you try sell some rolls to establish whether you can get traction and prove revenue potential.

Related: Direct Marketing: Go Where Your Customers Are

I’d like to launch an app with an advertising revenue model. What do you think? — Mvelo

I’m sorry to be the bearer of bad news, but advertising is an insufficient revenue model in South Africa. You need to figure out another way to make money. Most times, the paths to non-advertising revenue streams only reveal themselves once you have users.

You should work on the assumption that it will take you at least two years to get sufficient traction, therefore you need to have two years’ worth of runway before plunging into your entrepreneurial adventure. In those two years, you should be growing your users as much as possible.

The size of your user base will determine your negotiating power with potential investors and/or customers, and will determine the odds of success in finding a non-advertising revenue stream.

Okay, forget advertising. I’m going to charge my users a monthly subscription of R20. — Mvelo

I realise that it’s a chicken and egg situation, but it’s very hard to find backing until you have proof of your theory working in the real world. On other hand, it’s hard to get proof without first finding backing. That’s the entrepreneurial quandary.

Generally speaking, the egg comes before the chicken. The egg is users. The chicken is revenue. Before you can test your revenue theories, you need users. Refer to previous answer.


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How The Black Umbrellas Programme Can Boost Your Local Black Business

Going it alone and succeeding isn’t unheard of in entrepreneurial circles – but getting the right backing can accelerate your success. South African SMEs have a ‘big brother’ in Black Umbrellas, explains CEO Seapei Mafoyane.

Shanduka Black Umbrellas

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Going it alone and succeeding isn’t unheard of in entrepreneurial circles – but getting the right backing can accelerate your success. South African SMEs have a ‘big brother’ in Black Umbrellas, explains CEO Seapei Mafoyane.

The networks that the programme has are extensive. Along with mentorship, when these building blocks come together, they do something really majestic for the outlook of SMEs.

The Challenge

“The perception of SMEs in corporate South Africa is that they’re risky, unreliable and incompetent,” says Seapei. This results in a lack of opportunities for SMEs because large corporates still view them as potentially risky.

Related: 10 SA Entrepreneurs Who Built Their Businesses From Nothing

Joining Black Umbrellas offers the following:

1. Cameraderie

Belonging to a group of people who are going through the same challenges that they are. I think it’s extremely encouraging to find people who understand the challenges in the environment you’re going through.

2. Entrepreneurial spirit

You find businesses in different sectors and at different maturity levels in their business lifecycle. It’s very encouraging for someone starting out in their business to find a more mature business, perhaps in their second or third year, that has banked some projects.

3. Relying on a big brother

Black Umbrellas has been able to build a brand that is recognised for understanding the needs of corporate South Africa and being able to empathise with the requirements and support structures of SMEs. What entrepreneurs look for in the programme is that big brother that helps them weather the storm.

The Solution

“In a market where there’s quite a visceral relationship between corporate South Africa — where the majority of markets are — and smaller, medium enterprises trying to locate those opportunities, Black Umbrellas really is a meeting place,” says Seapei.

“We provide a marketplace for corporate buyers and SMEs to come together in an environment that is trusted. Some of the opportunities our businesses are able to access would not have been accessible to them if they were flying solo.”

SMEs abound, but it’s not always easy for larger corporations to find, vet and mentor them.

SMEs that join the Black Umbrellas programme have reported reaching levels they never saw themselves achieving outside of the programme.

“It sounds overly-simplistic, but I think the change is tremendous when SMEs join Black Umbrellas,” says Seapei. “It’s quite a thing to watch: A business trying to do this on their own and how their outcomes change when they join the programme.” Black Umbrellas opens them up to a network of help that is as wide as it is deep.

Related: Attention Black Entrepreneurs: Start-Up Funding From Government Grants & Funds

partnershipThe Power of Partnership

“We’d never be able to do anything we do without relying on collaboration,” emphasizes Seapei. “We rely very heavily on corporate partnerships to avail those opportunities to us and those markets for SMEs to be able to do what they do.”

Black Umbrellas has an extensive network of funders and donors that is expanding continuously and prides itself on being the custodian of SME development in South Africa. She says the programme aims to ensure high-impact SMEs produce incredible results to turn the outlook of the economy around.

One of Black Umbrellas’ longest-standing partnerships is with Transnet:

  • Transnet understands the mandate set out by Black Umbrellas and the need to invest in entrepreneurs.
  • We’re able to support their supply chain through the development of these dynamic businesses that go on to transform their supply chain and respective communities
  • Transnet has an incredible impact on the economy — through just two small incubators in Richard’s Bay and Port Elizabeth, with almost 500 jobs, which is a huge social return on investment.

BECOME A BLACK UMBRELLAS SME

Black Umbrellas’ mandate

Many start-ups don’t make it beyond the first two years because of inadequate planning, lack of support, financial or knowledge resources. Yet the growth of the SME sector in South Africa is vital for economic development of our country and in solving the unemployment crisis.

Black Umbrellas offers a platform through which to develop a business from its start-up phase to full independence. Because the programme addresses the multidimensional components required to develop an emerging business into a sustainable one, entrepreneurs are 100% supported on their business journey, which gives them the leverage to succeed. This support includes access to markets, networks and finance.

Programme benefits

Emerging businesses are supported with infrastructure, mentorship and collaboration, to assist their transition from incubation to viable, independent businesses.

For committed, hardworking and dedicated entrepreneurs, this multi-tiered business support programme is an important catalyst in enterprise development.

Related: 10 Dynamic Black Entrepreneurs

Black Umbrellas’ contribution to the economy

  • In seven years 1 000 SMEs have achieved a collective turnover of over R2 billion
  • The programme has contributed a combined R118 million in taxes back to the fiscus
  • Over 10 000 jobs have been created through our SMEs
  • R436 million in salaries has been contributed as a result of the programme.

Mistakes to avoid when establishing your SME within a large supply chain

Focus on a specific area where you can add real value. You’ll never be able to maximise every opportunity by trying to be all things to all people, says Seapei. “As an SME you want to find a particular niche that you can fill successfully, thereby maximising your unique value proposition.” 

Who should apply?

  • Entrepreneurs with a business enterprise at its start-up phase
  • The business should be registered with the Companies & Intellectual Property Commission (CIPC), and for small business tax
  • You must have the passion to succeed and be willing to work to achieve your business goals
  • You must be South African and black according to the BEE definition.

The 2017 National Enterprise Development Awards

Top performing small and medium enterprises have been recognised at the Black Umbrellas National Development Awards. Black Umbrellas established the National Enterprise Development Awards (NEDA) in recognition of the achievements of the entrepreneurs in their business incubation programme. These awards highlight the hard work and dedication required to establish and sustain a successful business that creates jobs and contributes to the economy.

The finalists were selected from regional enterprise development awards ceremonies held at each of the Black Umbrellas incubators across the country. The businesses in the incubators have altogether created and preserved over 10 000 jobs across key economic sectors, which include mining, construction, engineering, security services and project management.

Overall winners were:

  • Most Jobs Created: Hula Minerals and Processing
  • Best Performing Company: Aquila Projects (PTY) LTD
  • Best BU Ambassador: Recycle 1st
  • Overall National Winner: Modi Mining
  • Incubator of the Year: Johannesburg incubator
  • People’s Choice Award Winner: Recycle 1st

Seven Years  1 000 SMEs R2 billion collective turnover

  • Contributed a combined R118 million in taxes back to the fiscus
  • Created more than 10 000 jobs
  • Contributed R436 million in salaries
  • Expect more from your ESD Investment.

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