Editor’s note: This article was first published in June 2010; its mention of catalogs and the Yellow Pages as main advertising channels alongside the internet reflects 2010.
It doesn’t matter whether our business is going to be large, medium-sized or small. When it comes to choosing a name, we should do it in a way that, to anyone who sees it printed in any kind of advertising, sounds serious and big.
Nowadays, a large share of customers come to our company through advertising, whether online, in catalogs or in the Yellow Pages. Remember that with people, just as in a first negotiation, you never get a second chance to make a first impression.
I know it’s very common in Spanish-speaking countries to use a first name and surname when choosing a business name. You should always think about what someone who reads your ad without knowing you is going to see. Let me give you an example.
Imagine two brothers, David Martínez and Oscar Martínez. Now think about which company would appeal to you more as a business partner:
- HERMANOS MARTÍNEZ S.A. (Martínez Brothers; S.A. is the Spanish equivalent of a public limited company)
- GRUPO MARTÍNEZ S.A. (Martínez Group)
- DAOMA S.A.
- MARTÍNEZ S.A.
The first on the list would be the most common choice of name. However, according to marketing studies, it would be the least eye-catching when customers choose between it and companies with any of the other names we’ve listed. Another example, with a real estate business: Mr. Francisco Campoy decides to open a real estate agency right in the city center.
- INMOBILIARIA PACO (Paco’s Real Estate; Paco is the common nickname for Francisco)
- AGENCIA INMOBILIARIA CAMPOY (Campoy Real Estate Agency)
- INVERSIONES CAMPOY (Campoy Investments)
- INMOCAMP
Clearly, even if you had a genuine real estate corporation, a name like “Inmobiliaria Paco” wouldn’t give any sign of size to someone who doesn’t know your company personally. On the other hand, a 20-square-meter office called “Inversiones Campoy” suggests something more than a small or family business.
Sometimes the excitement of our first business and our huge eagerness to win over the nearest market (our city) lead us to put our nickname in the company name, to make sure people know us and know the company is ours. But in the long run, if your business grows, customers in other areas may not see your trade name in a good light.
Other entrepreneurs use the name of their newborn child, letting the emotions of becoming a parent for the first time influence the image of the company. We mustn’t forget that for a customer who doesn’t know us, our name and logo are everything when deciding whether to get to know us.
That’s why, once again, I insist: think through every detail of your business, however small, so that it conveys size, or at least seriousness. That way, one day you may have a big business. If you start a business thinking you’ll never grow, that’s exactly what will happen.
A study of the Spanish market shows that Spaniards themselves are unconsciously drawn to companies with American names. The reason is easy to show with a simple example:
- MANTENIMIENTO Y REPARACIONES INFORMÁTICAS (Computer Maintenance and Repairs)
- CORPORATIONS MYCROSISTEMS
It’s obvious at a glance which company you’d lean toward when handing over your company’s IT maintenance, unless the other option were “Reparaciones Informáticas Julito” (Little Julio’s Computer Repairs) or “Reparaciones el Colgao” (roughly, “The Spaced-Out Guy’s Repairs”). Hardly anyone could compete with that 🙂
Further reading
- Choosing a logo for your business
- How to be a successful businessperson
- Common mistakes made by Spanish business owners
- Differences between Spanish and American business owners
- Why new businesses fail
Featured image: Michellecornelison, CC BY-SA 4.0, via Wikimedia Commons.
