This Is Why Your Business Name Matters

“Your business name is more than a label – it’s your first impression. The right name builds trust and sets you apart, while the wrong one can confuse customers or harm your brand," explains Joe Phelan, money.co.uk business accounts expert.

When Pete’s Super Submarines rebranded as Subway in 1968, it wasn’t just trimming syllables – it was setting the stage for global expansion.

A business name is far more than a label – it’s a first impression, a search term, a brand in miniature. And, for small business owners, it can be the difference between blending in and standing out.

Your Name Is Your First Pitch

A business name speaks before you do. It gives prospective customers a clue — consciously or not — about what you do, who you’re for, and whether they should trust you.

Take Backrub, Google’s original name. It was quirky and confusing. But “Google” hinted at vastness and technical prowess, a playful spin on the mathematical term “googol.” That simple rebrand helped position the company as the gateway to the internet, laying the foundation for global dominance.

A good name can spark curiosity and instantly convey value. A bad name can do the opposite, adding friction, creating confusion, even forcing you to explain, apologise, or over-market just to get people to understand what you offer.

When you’re juggling the day-to-day realities of keeping things running and pouring everything you’ve got into making your idea a success, the last thing you want is to be revisiting your name time and time again. It can be exhausting having to clarify what it means, or to see people get the wrong impression about what you do.

A strong, strategic name saves you from that. It works with you, not against you, helping people ‘get it’ right away so you can focus on what you do best.

The Power Behind A Name: Lending And Reputation

While choosing a business name might seem like a creative or arbitrary decision, research suggests it can have real financial impact – especially when it comes to borrowing. A recent study of over 600,000 European firms found that businesses named after their owners — so-called eponymous firms — enjoy better terms on their loans. These firms tend to pay lower interest rates and access longer-term debt compared to businesses with other names.

Why? The study’s authors suggest that it’s because using the owner’s name sends a clear signal of reputation and commitment to lenders. It reduces uncertainty and builds trust, helping to bridge the information gap between borrower and lender.

In other words, a name isn’t just a brand – it can be a powerful part of your business’s financial foundation. Getting it right is more than marketing; it’s about creating trust that opens doors to better financing options, helping your business grow with confidence.

The Power Of Clarity

Clarity isn’t just a branding choice – it’s a trust signal. When people instantly understand what you do, they’re more likely to believe in it, engage, and buy.

Start with your name. Is it easy to spell? Searchable? Does the domain avoid awkward typos or double meanings? And beware the Scunthorpe problem: filters blocking innocent words because of unfortunate letter combinations.

Clarity shows professionalism. If your prices are clear, people trust you. If your layout is clear, they stick around. If your message is clear, they listen. Don’t give people a reason to hesitate. Say what you mean and make it easy for them to say yes.

Naming Pitfalls

Creative names can work, but not if they confuse your customers. Overly abstract or stylised names often backfire, especially if they’re hard to pronounce, spell, or understand at a glance.

Some brands have dropped vowels or rebranded to sound sleek and modern, only to be met with confusion or ridicule. Others have moved away from familiar names to signal change, but ended up losing recognition and trust.

What sounds quirky in one language might mean something unfortunate in another. And names meant to be playful can feel awkward in real life, especially if you can’t say them with a straight face. A great name should work for your audience, not against them.

Consider how it sounds, how it looks online, and how it might travel beyond your local market. Because in the end, a great name doesn’t just label your business, it opens the door to trust, recognition, and potentially even financial support.