Picture: Getty Images/ monkeybusinessimages
Choosing a business name can feel like one of the simplest parts of starting a company, but new research suggests entrepreneurs could be making the process harder by gravitating towards the same familiar words.
Also see: Signs your side hustle is ready to become a full-time business
The analysis, from UK company registration provider Tide, examined more than 101 000 independent businesses and found that ‘City‘ is the most commonly used word in UK business names, appearing in an estimated 1 735 names.
‘Automatic’ followed with 1 512, while ‘Atlas’ and ‘Hunters’ each appeared 1 288 times.
The findings come as entrepreneurship continues to gain momentum in South Africa, as the latest Global Entrepreneurship Monitor report found that almost one in five South African adults intend to start a business within three years, more than twice the rate recorded in 2023.
‘City’ leads a crowded field
Tide’s research looked at names across a range of independent businesses, including hairdressers, driving schools, accountants and estate agents.
After ‘City’ and ‘Automatic,’ the most frequently used words were ‘Atlas‘ and ‘Hunters,’ followed by ‘Prestige’ with 1 176 businesses.
‘Prestige.’ ‘Kings,’ ‘Elite,’ and ‘Apex’ were among the words commonly chosen to suggest quality, status or ambition. However, their popularity means the words may no longer provide the distinctive edge business owners hope for.
Other names appearing in the top 15 included ‘Istanbul,’ ‘Ali,’ ‘Townhouse,’ ‘George,’ ‘Taylors,’ ‘Abbey,’ ‘Minster,’ and ‘Diamond.’
The research also identified ‘The Hair Room’ as the most duplicated full business name in the UK.
Although businesses with the same name can operate in different locations, the overlap becomes more significant when customers use Google, social media or ChatGPT to find a particular company.
For smaller businesses, that can mean competing with other companies carrying an almost identical identity while trying to establish visibility online.
It is a consideration that extends beyond the UK, as South African entrepreneurs are also building businesses in an environment where discoverability and digital branding increasingly form part of the customer journey.
Changing a business name after launch can involve considerably more than updating a sign or social media profile.
Tide’s research estimates that a professional rebrand can cost between R110 000 and R1 100 000, based on the equivalent £5 000 to £50 000 range cited in its findings.
Also see: Affordable marketing strategies for small businesses
Mark Fensom, the managing director and founder of brand communications agency Warbox, believes founders should think about the meaning behind a name before trying to build a brand around it.
“A lot of founders get it all the wrong way round: they start with the name and try to build meaning into it afterwards.”
The research points to a middle ground for businesses that rely heavily on local search. A name does not necessarily have to be completely abstract to be memorable, but it also needs enough distinction to avoid disappearing among similar competitors.
Meanwhile, Tide member and business influencer Lauren Spearman took a different approach when naming her business Careering.
She said the name was intended to reflect the unpredictable nature of modern careers while retaining a sense of humour.
“I wanted a name that captured the reality of modern careers; they aren’t always linear and sometimes it can feel like you’re careering off course.”
Spearman said she worked on the company’s brand strategy and positioning before developing its visual identity.
Tide offers free business name tool
Tide has also launched a free Business Name Generator aimed at entrepreneurs who are still working through their options.
The tool is designed to help prospective founders explore different names before registering a company or investing in branding.
Heather Cobb, UK managing director at Tide, said: “Every founder wants a name that works as hard as they do, something unique and built to last that reflects their values.”
She added that words associated with quality and ambition can lose their impact when too many businesses use them.
For entrepreneurs entering South Africa’s growing start-up market, the research highlights the role a business name can play in helping customers identify and distinguish a company, particularly across search engines and social media platforms.
And with more businesses competing for attention across search engines and social platforms, choosing something that sounds good may be only the beginning.
Originally published by Cape{town}etc.
Also see: Business websites in South Africa worth knowing about
Be the first to know – Join our WhatsApp channel for content worth tapping into. Click here to join!