Choosing a business name is an important part of starting a company. Not only does it establish your brand identity, but it can also impact your ability to secure funding from investors. In this blog post, we’ll explore how picking a general name and avoiding high-risk industries can increase your chances of securing funding.
General Names Can Be Good
While some businesses opt for unique or creative names, going with a more general name can actually be beneficial when seeking funding. A general name helps investors understand what your company does without being too specific. This allows you to pivot or expand into new areas without having to change your name later on.
For example, “ABC Consulting” is a general name that doesn’t tie the business down to any particular industry or service. This makes it easier for the business to pivot into new areas as needed without confusing customers or investors.
Avoid High-Risk Industries
Certain industries are considered high-risk due to their controversial nature or potential for legal issues. These include adult entertainment, gambling, and marijuana-related businesses. While these industries may have high profit potential, they can also turn off many investors who don’t want to associate their money with controversial or potentially illegal activities.
By avoiding high-risk industries when choosing your business name, you demonstrate to potential investors that you’re focused on building a sustainable and reputable business. This increases the likelihood of securing funding from those who share similar values.
Conclusion
When choosing a business name with the goal of securing funding, consider going with something more general that provides flexibility in case of pivots and expansions in the future while avoiding high-risk industries so as not to alienate potential investors who may not agree with such activities.
Remember that your business’s name is an important part of establishing its identity and reputation – choose wisely!