Types of Business Names (and How to Choose One)

There’s a lot of debate about what style of name works best. Some entrepreneurs prefer descriptive names

that immediately convey what the business does (e.g., Springfield Plumbing Supplies), while others favor abstract or coined names (made-up words like Google or Xerox) that allow for more unique branding.

There’s also the middle ground of suggestive names, which hint at a quality or story without being literal (for example, Uber suggests superiority or elevation). Here are common categories of business names:

Descriptive Names: These include real words or phrases that describe the business’s function or industry. For example, The Coffee Bean Cafe or Speedy Car Wash. The upside is clarity – customers 1 immediately know your offering. However, descriptive names can be too narrow or generic. If you choose a very specific name like “San Pablo Disk Drives,” you may box yourself in if you expand beyond that region or product line. Ensure a descriptive name won’t limit your future growth.

Suggestive or Metaphorical Names: These names are related to an idea or feeling you want customers to associate with your brand, rather than a direct description. For example, Redfin (suggesting a swift fish for a real estate brokerage) or Evergreen Landscaping (conveying lasting, vibrant growth). A suggestive name can be powerful if it evokes your brand’s promise or personality.

They often strike a balance between being meaningful but not overly restrictive. Ask yourself what qualities you want to emphasize – innovation, reliability, luxury, fun? – and see if you can capture that in a word or two.

Abstract or Coined Names: These are made-up words or oblique references – think Kodak, Zappos, or Zendesk. The advantage is a truly unique name that you can own outright (trademarks are usually easier since the word didn’t exist before). Abstract names can be very brandable and memorable if backed by strong marketing. The downside is they carry no inherent meaning, so you’ll need to work harder to educate the market on what your company is about. If you go this route, ensure the name is easy to pronounce and not too strange; otherwise, you risk it being forgettable. Many coined names are short, snappy combinations of sounds that feel good to say.

Founder or Acronym Names: Some businesses use the founder’s name (e.g., Dell Computers, Ford Motor Company) or acronyms/initials (like IBM, KFC). Using a personal name can add a human touch and legacy (especially in fields like consulting, law, or boutique brands), but it might not communicate anything about your business’s services. Acronyms can seem professional, but be cautious here – unless you’re already a giant like IBM, an initialism is often dull and hard for customers to remember. In fact, new or small companies rarely benefit from an acronym name. A meaningless string of letters is a missed opportunity to make an impression. As a rule of thumb, avoid naming your startup like a faceless corporation with initials – you need every advantage to be memorable when you’re new.

How to choose the right type? Start by clarifying your brand strategy. What is your value proposition? Who are your target customers and what do you want them to feel? If you need your name to immediately convey your service, a descriptive approach might work (just keep it broad enough). If differentiation is key and you’re willing to invest in branding, a more unique or suggestive name could set you apart. For example, online naming agency Squadhelp notes that real words or combinations often appeal to people’s emotions and are easy to relate to. On the other hand, invented names give you a blank slate to build an image, as long as they’re not too weird.

Remember, any type of name can be effective if it’s backed by the right marketing strategy and brand experience. The name “Apple” doesn’t describe computers at all, yet through branding it has come to stand for innovation and simplicity. Meanwhile, a straightforward name like Pizza Hut clearly signals what you get. There’s no single right style – the key is what fits your business and stands out to your audience .