5 Mistakes Entrepreneurs Make When Naming – Part 3 – Choosing a Name that Won’t Grow

This is Part 3 of our 5 Part Series on 5 Mistakes Entrepreneurs Make When Naming. Check out Part 1 here and Part 2 here.

Mistake #3: Choosing a name that won’t grow with you.
Let’s say you’re starting a company that focuses on the stem cell market. Okay, that sounds like a good, targeted market. It’s large and growing.  And there is increased interest in stem cells in the media. So, you choose to give your company a very descriptive name such as American Stem Cells (with no disrespect to American Stem Cells Inc.).

The problem: The name only tells the world what type of business ASC is in.

Why is that a problem?

Let’s say the company takes off and you decide that you want to expand beyond stem cells into other therapeutic areas. Suddenly, American Stem Cells needs to change its name to let people know you focus on more than just stem cells. What if your company moves beyond enabling technologies?   What if it moves into markets outside the US?  What if stem cells fall out of fashion and a new technology become the rage?

If you realize in a year or so that your original name isn’t working, you’ll need to spend money on changing the name on all your materials, expanding your advertising, explaining to current customers, investors and the media that you are expanding your line. And on and on and on.

The problem could’ve been easily solved by creating a name that is not so limiting and designed to grow in the future.

So, when you start thinking about your name, don’t limit yourself to a name that describes your company as it exists now. Give yourself a name that will allow you to grow in the future.