290 | The Pros and Cons of Using Your Personal Name for Your Product Business Name with Katie Hunt

Think back to when you started your business. Was choosing a name an easy or difficult task for you? I’m terrible at naming things—particularly my own projects, so this is something I labored over for too long. But thinking through how to name a business is an important step in the process of starting your product-based business.

In today’s episode I’m replying to a question from Tiffany, one of our community members who is struggling with naming her business. She’s unsure whether to name it after her personal name or create a unique business name. I’m going to run through some pros & cons of each, plus share 7 tips for naming your business if it is not your name.

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How to Name a Business

The following question recently came in from Tiffany, one of our community members:

“Help! I’m having an identity crisis. I currently have my business name as my personal name but am wondering if it is better to have a business name that isn’t tied to me personally. Here are my concerns: If the company has my name will it ever be bigger than just me? Could I include more artists?

Originally I wanted it to be my name because I wanted to have my name on anything licensed but as I’m growing my business I’m learning that those are two separate business models and perhaps I want to keep them separate.

I’m still small enough that right now it would be easy to change this if needed. What do you think?”

The Pros and Cons of Naming a Business After Yourself

Naming our businesses can feel like an important and personal decision and that’s because it is! Whether you may feel strongly about having your name tied to your business, you could also have concerns about it. Here are a few pros and cons in regard to using your personal name for a product business name.

The Pros of Using Your Personal Name for Your Product Business Name

As a business owner, you may be leaning towards using your personal name for your product business name. Here are some reasons and times when naming a business after yourself is a good choice.

name recognition
ease of set-up
flexibility

Name Recognition

If you decide to make the business name the same as your personal name, it can help build credibility for you within your industry. Oftentimes, it can set you apart from companies that have similar business names. Many businesses within the same industry have similar names, so when you use your own personal name, you’re setting yourself apart, but also providing less confusion for your customers.

Ease of Set-Up

If you’re in the starter phase of business, it is easy to set up a sole proprietorship under your name and get started quickly. When the business is your personal name, there is far less chance of trademark issues, because it’s rare that someone has the same name as you in the industry.

However, it is recommended to set your business up legally and add LLC to your business name to help protect you and the business.

Flexibility

Using your personal name gives you the flexibility to change the focus of your business without having to change your business name. If you name your business something specifically tied to your product line and then you decide to shift and sell a different type of product, naming the business after you would provide you with more flexibility in changing your offers. This allows you to shift in business.

The Cons of Using Your Personal Name for Your Product Business Name

Now that we’ve walked through the pros, let’s take a look at the cons of using your personal name for your product business, as you may be leaning away from doing so.

Privacy Concerns

Using your personal name as your business name means that your personal and professional lives become more closely linked, offering you less privacy in your personal life. As you’re deciding on how important this is to you, consider how you would feel if your brand got really big—are you prepared to give up that privacy and have your name out there?

This is something Emily Ley experienced when her business became large. She then transitioned her planner based business to a more generic name of Simplifed.

Emily McDowell of Em and Friends also was strategic in naming her business as to not give away too much personal information in her business name.

Exit Strategy

While it’s weird to think of the end of a business when you’re getting set up, it's important to think about your exit strategy when naming your business. If you plan to sell the business at some point, it may be more difficult to sell if the business name is tied to your name. This could be harder for someone else to take ownership of the business.

Expansion

If you run a small business, you are likely the one doing all the creative and management work. As you grow, you may want to bring on other product designers, artists, and creatives to help expand your product line. You can certainly have them work under a brand name tied to your name, but if you’re looking to give them credit for their work, it may be easier to do so under a brand name that is not your own.

7 Tips for Naming Your Business (When You’re Not Using Your Name)

If you do decide to go with a general or unique business name rather than your own, there are seven things I want you to consider:

Your brand image, values, and what you offer. Does the brand name reflect all of these things?
Keep it simple, easy to pronounce, and memorable.
Consider competition and trademarks—ensure it’s not being used already.
Check to see if your digital home is available: URLs and social handles.
Pick a name that is Search Engine Optimization friendly—relevant keywords and visibility will help you show up in results and sell.
Is there longevity in your name? Choose a name that can grow with your brand. Bonus: Don’t choose something that is trendy.
Test out the potential names with your friends and colleagues to get feedback. Shopify has a free business name gene

Shopify as a free business name generator that is a great place to start coming up with initial ideas for naming a business.

In Conclusion,

Whether you decide to go with your personal name or a more generic name when thinking about how to name your business, I hope these tips and considerations are helpful in choosing your business name.

It is important to weigh the pros and cons of using your personal name and think long-term about where your business will go.

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Connect with Katie Hunt

Katie Hunt is a business strategist, podcaster, mentor and mama to four. She helps product based businesses build profitable, sustainable companies through her conferences, courses and coaching programs.

Website: prooftoproduct.com | Instagram: @prooftoproduct