starting a small business – GoForth Institute Blog

15 tips for picking a good name for your small business

Getting your small business’ name right is important – it creates a first impression of your business, and you won’t get many chances to change it later. Here are 15 of our top guidelines for choosing a strong small business name.

Keep the small business name memorable.
Keep the business name as short as possible.
Be creative, but not so wacky that your audience will get confused.
Allow room for future growth.
Use synonyms or words starting with the same letters to find something catchy.
Go online to search – try trademark searches, a Nuans name search, or even get ideas from a business name generator like the one created by Shopify.
You may not be able to get a .com of your exact name, but look for alternatives like .ca and .net. You can also get a descriptive URL, such as waveapps.com.
Look for a name that you can use consistently across various social media platforms – you may need to add a descriptive word here too, like with the URL example above.
Stay away from restricted small business names – names that are too similar to existing businesses, are considered obscene or inappropriate, or suggest a connection with the Royal Family or the government.
Choose a name that evokes the feeling of your brand.
Think of a name that will distinguish you from competitors in your industry.
Decide how much the name will describe your product or service. This doesn’t have to necessarily be right in the company name – it could always be used as a tagline or catchy phrase.
Think of some distinguishing names that could work for your business and write them down. Don’t second-guess yourself – get creative!
Take some time away from your list of potential names and focus on something else for a while.
After some time, return to your list and start the process of elimination.

Real business name examples

Here are some examples how of real-world businesses got their names.

Nike – Nike is the Greek goddess of victory, ideal for a business so focused on athletic apparel! Interestingly, the brand started out as “Blue Ribbon Sports.” Not terrible, but Nike is certainly more impactful.

Google – A “googol” is an obscure math term that refers to the number 1 followed by 100 zeroes, which suggests the large amount of information available to users of the search engine. The name of the business is a serendipitous misspelling of “googol.”

Marimekko – The Finnish clothing, textiles, and decor brand got its name from the middle name of its cofounder (Maria) and the Finnish word for dress (“mekko”).

BlackBerry – When the company was still called Research in Motion, they brought out their soon-to-be famous BlackBerry device, named because of the way the keyboard’s buttons looked like a blackberry.

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How are a business model and business plan different?

10 high growth business ideas

Last week, we talked about the importance of a business model. But how is it different from a business plan?

First, let’s talk a bit more about the business model.

Business model

The business model is a blueprint for your business. It’s an outline, showing how you’re going to run your business, and how you’re going to make money.

There are five elements of a business model:

Business concept: A short description of an opportunity, including a description of your average customer; the benefit of your product or service to the customer; the product or service; and the way you’re going to get your product or service to the customer.
Value chain position: Your business’ position on the chain of activities through which products and services pass to get from you all the way to the end user.
Calculating customer value: An estimate of the value of the tangible benefits your customers will receive by purchasing your product or service.
Revenue sources and cost drivers: Identifying your sources of revenue, and activities that come at a cost.
Competitive advantage: The state when customers perceive your products or services to be superior to your competition.

Business plan

Where a business model is a blueprint, a business plan is a roadmap. A business plan is longer than a business model. It’s a formal, detailed document that includes a description of the business you want to run, your business goals, and the plan for reaching those goals.

A business plan contains sections like: Marketing Plan, Startup Expenses and Capitalization, Management and Organization, Products and Services, and Operational Plan.

A business plan is usually developed around the answers to three common questions:

Where are we now?
Where do we want to be?
How are we going to get there?

It’s usually written for one or more of these five reasons:

To test the feasibility of your business idea and work out any bugs on paper first.
To develop strategies ahead of time for marketing, finance, operation and human resources, instead of when you’re in the fast-paced start-up stage.
To get funding, such as a bank loan.
To attract investors.
To have a roadmap to follow for at least the first year in business.

Why does your small business need both a business model and a business plan?

It’s easy to come up with business ideas, but just because you build a company, that doesn’t mean customers will come. Time and effort should be spent planning before your new company’s products and services ever reach the market. You need a good foundation and planning before you invest all your time and money.

To get started, check out our free One-Page Business Plan – happy planning!

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Perks and snags of sole proprietorship

A sole proprietorship is an unincorporated business owned by one person — the sole proprietor. This is the oldest, simplest and most common form of organization for a company. As the business owner, you own all assets, earnings, and profits. But you also hold all the responsibilities (including legal and debt), obligations and liabilities.

Let’s take a look at the perks and snags of the sole proprietorship.

Perks of a sole proprietorship

The least expensive form of ownership; low start-up costs.
Most freedom from regulation.
Simple to start and dissolve.
There are tax advantages for the owner.
The business owner has complete control over the company and decisions.
Smallest amount of working capital required.
Owner has complete control over the income generated by the business.
Owner has complete access to profits.
Flexibility.
Easiest to exit.

Snags of a sole proprietorship

The business owner is legally responsible for all debts.
Unlimited liability (not separate by law; can be personally liable for all debts even if it means paying debts with your personal assets).
Business can’t continue in absence of owner.
Harder to raise funds from personal savings or loans.
Higher personal tax rate.
It’s often harder to find high quality employees.
Limited resources and opportunities for growth.
Some employee benefits are not deductible from business income.

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How to find your entrepreneurial purpose

small_business_location Educator and author Joanna Macy once spoke at a conference about three directions in which to look for your own purpose. We think these can apply to entrepreneurship too.

Take a look at each of these three directions and see how they apply to your goals and vision as a small business owner. How does it differ from the purpose of your business itself?

1) Work With Your Passion

Would you run your business for free? We’re not saying you should, but it’s a good indicator of how much you enjoy what you do. Approximately 15% of new business ideas are related to the entrepreneur’s hobby. Makes sense, right? If you start your small business around something you love doing and have passion for, chances are good that you’ll stay interested and engaged in the day-to-day tasks. You’re also more likely to stick with it if the going gets tough.

Of course, this doesn’t mean that your favourite hobby will automatically become a great small business. You may know a lot about your hobby, but it’s much different when it becomes a business. Make sure you do lots of research about the viability of your small business idea before you jump in.

2) Work With Your Pain

No, this doesn’t mean going to work even if you have a broken arm. Like passion, working with your pain can mean creating a small business around your desire to make the world a better place.

Social entrepreneurs, also known as philanthropist or non-profit entrepreneurs, measure success by the impact that they have on society. Highly passionate, the greater good of the community is their primary interest, and they create a business to provide solutions to social issues. The results can be very rewarding.

3) Work With What’s At Hand

Entrepreneurship doesn’t have to mean instant success, staggering riches, or flashy fame. Starting a small business with what’s at hand can be impactful and satisfying. How can you use your small business to respond to vital, yet everyday needs in your community? Some small businesses that fit this category are tutoring, meal delivery, home daycare, and that organic bakery your neighbours are demanding.

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