When establishing a startup, you have so many things to get done that it can be very tempting not to spend too much time and effort thinking about a name for your business and instead use your name as a business name. However, before you commit yourself, it can be worthwhile to learn the pros and cons of such a strategy:
Top Advantages of Using Your Name for Your Business
Ease of use: The biggest advantage of using your name as the name of your new business is that you do not have to stress yourself about thinking of an appropriate name. You can start using it right away without any worry.
Use your personal bank account for the business: Since you will already have a bank account, you can benefit by using it to deposit sales proceeds and pay your suppliers and vendors. However, using the same bank account for personal and business use is the easiest way of messing up your financial records and facing trouble explaining the entries to the IRS.
Leverage personal reputation and connections: If you already have a reputation as an individual for something, using your name as the business name can make it easier for you to market your business. Many people also think using their names is a friendlier method of connecting with the target audience. You can consider taking the help of an online business name generator to throw up names that can connect better with customers.
Why Using Your Name For Your Business Is Not a Good Idea
Ego ahead of customer needs: When you establish a business, you must put customers first and figure out ways of satisfying them. Using your name indicates that you think your name is more important than customers are. It says that the business is about you and not the customer.
No indication about the nature of the business: Even if you feel good about using your name as the business name, the trouble is customers do not get to know anything about your business when they first encounter it. Ideally, the business name should tell customers the nature of the products and services and the reason they should prefer it to the competition.
Usually too long and generic: With the use of two or more words that make up your name, the business name can sound and feel clumsy and difficult to use as a memorable and user-friendly domain name or brand name. You will benefit more from a name that is short, catchy, and easy to spell and remember. Moreover, since you likely share the same name with millions of people, it can be hard to cut through the clutter and make your business distinctive to potential customers. According to Entrepreneur, people from other cultures may find your personal name difficult to say and use.
Most marketing and branding experts agree that even though using your personal name as the business name is quick and easy, it can make it difficult to make a mark in the minds of the target audience. It can be difficult to register the business name and also limit your growth.