What’s in a company name? An effective company identity helps you build your brand and create a sense of stability for your business.

If you choose a name that doesn’t resonate with clients and you have to change it, you risk losing credibility, says Sara Gilbert, founder of Montreal-based Strategist. “It’s really going to affect the business,” she says, “especially in financial services, where it’s [all] about stability.”

Here are seven mistakes to avoid when selecting a name for your business:

1. Thinking short-term
Create a name that works for your business today, but will also be suitable in two, five or even 10 years.

Many advisors use their own names for their business, says Gilbert. Using your name can cause problems if a partner joins or leaves the practice, or if you retire and sell the business, making the name no longer relevant.

2. Believing the process won’t take long
There are several hoops to jump through when choosing a name, says Gilbert, and the process can take months to complete.

Any name you select must be approved by a regulatory body, she says, such as the Investment Industry Regulatory Organization of Canada or the Mutual Fund Dealers Association of Canada. If you are creating a sole proprietorship or general partnership, you must register your company with your provincial government. If you are incorporating, you will have to do so through Industry Canada. Your company name cannot sound similar to any other business in Canada, even those outside the financial services industry.

As well, if you are based in Quebec or cater a bilingual clientele, you must find a name that works in both English and French.

3. Selecting only one idea
Don’t come up with just one name. Create a list of possibilities to speed up the approval process.

When you have a list of proposed names, you won’t have to start at the beginning if the regulatory bodies reject your first choice, says Gilbert. You can simply submit the next option.

4. Getting too attached to one name
“Don’t be too much in love with your ideas,” says Gilbert. Instead, be open to suggestions.

Ask others from outside your business, such as a coach or a mentor, whether they think your proposed name will resonate with your target market, says Gilbert. If the name doesn’t work — change it.

Don’t hesitate to ask the coach or mentor for suggestions.

5. Not doing your homework
Look at names of other financial advisory firms so you know which names are taken. Note the names you like, and those you don’t like — and why.

Check out your proposed names online to see what prospects will find when they do an Internet search.

Enter the name in a search engine, such as Google, and decide whether you want to be associated with the results, says Gilbert. Remember, those “hits” are the sites clients may visit by accident instead of linking to your business.

6. Choosing a name that’s too complicated
Make sure your name is easy to remember and to write down, Gilbert says.

Even if the name sounds great, people won’t be able to find you on a search engine if it’s difficult to spell, she says. If clients can’t find you online, there’s a good chance they won’t contact you.

7. Not checking the name’s acronym
When you choose a name, remember to check what its initials would spell.

For example, if you decide on the name “Gordon Smith and Thompson,” says Gilbert, your acronym will be GST, which you may not want.

IE