Avoid These Mistakes When Naming Your Business in Canada
Avoiding costly mistakes when naming your business in Canada is a critical step in setting up your entrepreneurial journey for success. Your brand name forms the first impression people have of your business and can influence whether or not they become customers. If all goes as planned, you’ll live with the business name you choose for years to come, so it’s important to get it right. But where to start?
Choosing a business name can be both fun and intimidating. The options are endless, but avoiding common pitfalls will help. Start by considering how your name will resonate with Canadian consumers, avoid confusion, and reflect your brand identity.
This article will walk you through the elements of a great business name, what to avoid when naming your business, and how to start brainstorming ideas.
The Five Elements of a Great Business Name
There are five requirements for a great business name. For Canadian SMEs, these elements are particularly important to ensure the name resonates across diverse markets, complies with bilingual requirements, and reflects regional nuances. These factors help businesses stand out in Canada’s competitive market. It should be:
Clear The name needs to make it clear what your business is and avoid room for confusion or deception. It shouldn’t sound like a competitor or reference an industry you have nothing to do with.
Easy The name should be easy to say, easy to spell, and easy to remember. This is true for anyone, but especially your target market.
Unique You want your name to stand out from the crowd. A name that’s clear, easy, and unique will be more memorable. You don’t want a business name people will confuse with others.
On-Brand Most of all, the name needs to reflect your business and the people it serves. What’s your brand personality? What will resonate with your audience? It should align with your brand voice and appeal to the people it’s meant for.
Available You need to make sure your business name isn’t already in use. If another company has trademarked or registered the same name, you could be hit with a cease and desist. That means, legally, you won’t be allowed to use it and will need to come up with a new name, logo, and update all your marketing material. Yikes.
What to Avoid When Choosing a Business Name
When naming your business, here are a few common pitfalls to steer clear of:
Limiting Your Business for Growth. Don’t base the name of your business around one core offering if you plan to expand your business services over the years. It’s weird when a company called “Funky Frozen Yogurt” is also selling coffee and pizza two years down the line. Ensure your name supports your broader vision.
Overcomplicating the Name. Avoid names that are too long, hard to pronounce, or use uncommon spelling. A name like “Xzquzi Solutions” might look creative but is difficult for customers to remember, spell, or search for online.
Ignoring Digital Presence. Failing to check if the domain name, social media handles, and other digital properties are available can make it difficult for customers to find you. A consistent digital presence is crucial.
Overly Trendy or Jargon-Filled Names. Avoid names based on fleeting trends or niche industry jargon that may not age well or resonate with your target market. For instance, names like “Blockchain Buzz” might feel outdated as the market evolves.
Names Too Literal or Generic. Generic names like “Quality Cleaning Services” or “Fast Tech Solutions” fail to stand out in crowded industries. They can also make it harder to build a unique brand identity.
Mirroring Competitors. Don’t choose a name that could be easily confused with other similar businesses, especially competitors. One neighbourhood doesn’t need a ‘Puzzlers Cafe’ and a ‘Jigsaw Coffee Co.’
Unintended Negative Associations. Research your potential name thoroughly to ensure it doesn’t have unintended meanings in other languages or cultures. For example, a name that seems harmless in English might have a negative connotation in French, a key consideration in bilingual markets like Canada.
Inappropriate Use of Puns. While puns can make your brand memorable, overusing them or creating a forced pun (e.g., “Sole Mates” for a shoe brand) can come off as cheesy or unprofessional.
Disregarding Your Target Audience. A name that resonates with your preferences but doesn’t connect with your customers can alienate your target audience. Focus on a name that reflects their values and needs.
Skipping Trademark and Legal Checks. Even if the name feels perfect, failing to verify its legal availability can lead to disputes or rebranding costs. Conduct thorough checks to protect your business name.
Forgetting Emotional Appeal. A name should evoke positive feelings, curiosity, or connection. Avoid overly technical or dry names that fail to resonate emotionally with your audience.
Implied Credentials. Honesty is the best policy here. You want a name that conveys what your business is about and the experience it brings. You don’t want a name that suggests credentials you don’t have, like calling a skincare brand “Dr. Cleo” when there isn’t an actual doctor involved. Ultimately, stay away from anything that could be potentially confusing, misleading, or misunderstood. For example, a name like 'Level Up Consulting' could lead to legal disputes if another company has already trademarked a similar name. Avoiding these pitfalls ensures your name is both clear and legally safe in Canada’s business environment.
How to Choose Your Business Name
Now that we’ve covered do’s and don’ts, let’s talk about how to come up with the right name.
It can be hard starting cold, so we’ve put together a free Brand Name Brainstorm Worksheet to help guide the creative process. It includes prompts and examples to help you start generating business name ideas, then suggestions to help you narrow them down.
Heading into your brainstorming session, you should already know who your business is for (your customer target), what your brand stands for (your values and purpose), and what message you want to convey (your personality, tone of voice, and competitive edge).
Your brand name should reflect who you are and appeal to the people you hope to attract. It shouldn’t be random or trendy. Knowing your goals and objectives will give you a strong base to start brainstorming.
We recommend printing a copy of the worksheet so you can step away from your computer, physically mark up the worksheet, and have fun with the process.
There are no bad ideas during a brainstorming session. Even “bad” ideas can end up sparking a series of great ideas.
A brand name isn’t something you want to rush.
You’ll want all business owners/partners involved in the brainstorming session. If it’s only you running your business, then great – you can get started on your own. If you’re in a partnership, ensure there is transparency with this process and that you align on your brand strategy.
Once agreed upon, encourage everyone to keep an open mind during the brand name brainstorming process.
Remember, no idea is a bad idea during a brainstorming session. Even “bad” ideas can end up sparking a series of great ideas. A brand name isn’t something you want to rush.
If you find yourself getting stuck, take a break. Feel free to walk away, do something else, then get back to it.
Once you’ve shortlisted your favourites, asking trusted friends, family, or mentors for their opinions can be helpful. Ensure their feedback is relevant by sharing what your business is about and your target audience. For example, their input is most valuable if they understand your market or are part of it. But be sure to share what your business is about, what you’re trying to convey, and the customers you’re after. If Uncle Dwight isn’t your target market and doesn’t understand what you’re doing, his opinion shouldn’t hold much weight.
So block time in your calendar (invite business partners if needed), get your Brand Name Brainstorm Worksheet, grab a favourite beverage, and have fun!
Legitimizing Your Business Name and Making Sure It Isn’t Taken
Once you have two or three great name ideas, you need to make sure no one else is using them. Specifically, you’ll want to ensure your name isn’t taken in your province or anywhere else in Canada. Not only would that hurt your brand, but it could also get you into legal trouble.
Check out “How to Register Your Small Business in Ontario” for steps to ensure no one else has your name and to legitimize your business. For businesses in other provinces, explore national resources like the Canadian Business Network or your local registry. If you're outside Ontario, consider exploring national resources like the Canadian Business Network or your provincial registry to ensure your chosen name is unique and compliant across Canada.
Choosing the right business name is an important step in creating a brand that lasts. With a thoughtful process and the right tools, you can come up with a name you’ll love for years to come. Happy naming!
