The name you choose can make or break your business. In fact, choosing a business name can be the hardest part of any start-up. You've got to be sure that the name isn't already being used by someone else, will still work as the business grows larger or offers a broader range of products and services, and (if you want to establish a web site) that the accompanying Internet address is not already being used.

Perhaps most importantly, you need to choose a name that makes it instantly obvious what your business is all about, will attract attention and will help ensure people remember what and where the business is. There's no doubt that by selecting wisely, you can make your business name a valuable asset.

There are essentially three kinds if business name you can choose from:

• Descriptive

  Names that say exactly what the business does, or which are named after the owner. For example, John Smith’s Jumbo Snacks

  • Pros: Tell people what the business does and who is behind it
  • Cons: Often not eye catching or memorable

• Associative

  Names that are more creative and which create associations in the minds of customers. For example, Sunshine Café

  • Pros: Create an image of the business in the minds of customers
  • Cons: Must be original and inventive as half hearted efforts are counter productive

• Abstract

  Names that have no meaning in their own right, are amalgamations for parts of names or words. For example, Cafalonia

  • Pros: Make it easier to come up with a name that it not already in use
  • Cons: Offer no explanation of what the business does and don’t create associations in their own right

As a guide, when naming a business, you should ensure that:

• The name isn’t already taken by another business

• The name you have chosen doesn’t have negative connotations

• The name reflects what you want your business to stand for and what it offers your potential customers

• The name is appropriate and appealing to your audience

• The name has the potential to be memorable

• The name can’t potentially limit your business in any way. For example can the name grow with you into new categories or with new customers?

• If you plan to enter overseas markets, the name is appropriate in meaning in all major languages and doesn’t have any cultural sensitivities

• The name is easy to say and spell

• You can own and protect the name as your trademark

• If you want your business to be online that the relevant Internet address (URL) is available.

The best way to get started is to get friends and family together for a brainstorm. Look at what competitors are called and think of good business names that stand out in your mind. Use the internet, phone book, magazines and business directories to research. Ideally you should have at least 10 good names that you can whittle down to a final shortlist by checking which of your possible names are available – remember that many will already be taken. You can check this easily on the Companies House website.

Once you have your shortlist of available names, use family and friends in the elimination process and make sure each of the names generated stands up to the hints and tips above.

When you decide on a name, there are a few steps to go through to make sure you are legal. Again the Companies House website will provide you with a full guide on how to comply with the law.