How important is a business name?
When starting a new business, one of the huge challenges you encounter other than creating a business plan is choosing the right business name. Your business name is very important for your business identity. If you want to create a mark in the market as well as make your customers remember your business, you have to come up with an effective business name. Keep in mind that your business name can play a substantial role in making or breaking your business position.
For every business, the business name is the only one that remains constant over a period of time. And that is one good reason why you have to have it right the first time. Your business name is what is usually remembered by customers and it creates the recall value of the product or services you are offering. As a result it gives value to your business and often the name of your business is an asset in itself.
Choosing the Right name for your Business
Creating a name for your business is actually not as easy as giving a name to a child or a pet. Proper consideration is needed to make it as effective for your business as possible. Before starting a new business, you have to come up with a business name that says more about your company’s expertise, products or services you offer and its distinctiveness from others. Creating a business name definitely needs several days of brainstorming. There are many factors that should be considered before selecting a right and an effective name for your business.
Your business name should be direct to the point and not just a charming one-liner which only you or your partners can understand. Make it short and easy to be remembered and be understood by customers. Customers should be able to distinguish the name of your business from your other competitors. Make it short and concise. If you need to think outside the box, then do so. With the many rising new businesses today, no doubt almost all words in the dictionary have been trademarked. So it has become a big challenge to come up with a unique name for your business. But with some innovations like tweaking of original words and spelling, you can create a name that is meaningful, unique and appealing to customers.
Getting the experts’ help
If you are a new entrepreneur and just starting a new business, turning to experts is also a good idea. You can always seek an expert’s advice in naming your business. It is very important especially if you are in the line of business that has a wide range of competitors. It makes your business name much more crucial in influencing your success. Getting around with some trademark laws is an important of creating a name. And having a business naming expert will make the process easier for you.
Naming a new business requires great effort on your part. The name of your business carries a potential for success in your company. It influences how your potential and existing customers will remember you. Since a name can prove a lot for your success, take your time in choosing one. And after choosing the right one, get on to your business and make that name be known.
Do you want to start a business or improve the cash flow of your current business? Most people get so worked up in setting a new business or day-to-day worries of their current business that they don’t think twice about the direction they are moving towards. But you cannot run blindly and succeed. Anyone with a successful business will tell you that the first step towards success is to determine a business plan for yourself. If you want to be a great entrepreneur, don’t let yourself flow with the tide. Sit back and analyze your business goals and requirements. First think hard, than act and you will stay on the road to success.
So stop procrastinating, pick up a pen and paper and start writing your business plan. It is not as difficult as most people imagine it to be. Just brush aside your worries and concentrate your mind on your business endeavors. A good business plan has generally well-determined form and content. It can be easily divided into three basic parts which are as follows:
- The concept of your business which is more like your vision statement
- The marketplace which concerns your competitors, and your target audience and customers
- The financial section which circulates around your cash flow
Now you have a basic plan to ponder upon. As you can see that all these three areas are extremely vast, so for a more focused approach, a good business plan is further divided neatly into seven components which are explained below:
1. Executive summary: This is the outline and title page of your business plan which will determine your aspirations, goals, requirements, achievements and basically a summary of your business plan. It should read like an introduction page to an interesting book, giving all the important clues of what is in the book.
2. Business description: As the word ‘business description’ depicts, this area of your plan describes every aspect of your business. Determine what you will do and how you will make profit.
3. Market Strategies: Here you will describe your market, what will be your market shares, what will be the position of your business, how will you price and distribute your goods, what will be the promotional plan and where you will sell.
4. Competitive Analysis: In this section, you will search and determine your competitors, their strengths and weaknesses, their costs and products. You will analyze all your key competitors and formulate strategies to outshine them.
5. Development Plan: Nothing is perfect and can never be, there is always a room for development. Draw out development plans in this section including market development, product development and organizational development.
6. Management Plan: Here you will determine about your day-to-day organizational needs including your staff structure, tasks assigned, your capital requirements, cost of goods and your organizational expenses.
7. Economic and Financial components: In this last section, you will keep a check on your financial and economic data. Keep income statements, cash flow statements and balance statements under this section.
Now that you have your business plan, the next step is to put your plan to action!
India is expanding its borders for investors and providing maximum opportunities for business ventures in all fields. With the ever rising GDP rate, now is a high time for anyone to take the cue of rising financial horizons and dig into the business world for a shining future.
If you are one of those future optimistic persons, it is the right time for you to setup a business in India. India offers flexibility to set up different types of business entities Like Private corporations, Public Corporations, Unlimited Company, Partnership, Limited Liability Partnership, Joint venture, Branch office, Joint Venture Company, Subsidiary Company, Sole Proprietorship and Liaison Office. You can start any of the ventures confidently by following some simple steps and procedures. The first brick that you lay on venturing a business in India is to incorporate it. This process of registering your company is under the charge of Registrars of Companies (ROC) appointed under the section 609 of the Companies Act. Their main duty is to register the companies in their respective States and territories.
For preparing to incorporate your Private limited company or Public Limited company in India, the steps are as follows:
- The first step is to select a list of names that will show the objectives of your company. Also make sure that your name is not resembling any other business entity in India or Violating the Emblem and Names law. You may want to check whether a name already exists on the MCA website here.
- You also need to apply for Director Identification Nubmer (DIN) (http://www.mca.gov.in/MCA21/Din.html). No one can be appointed as a Director unless they have been allotted a DIN. Also every document prescribed under the Companies Act, 1956 need to be signed digitally with a Digital Signature of the Director., so it is compulsory to apply for and obtain digital signatures of atleast one Director.
- Then you need to apply your chosen company names to the concerned ROC of your State to ensure that your selected name doesn’t already exist. For this you will have to apply in the General Rules and Forms with Rs.500 Fee.
- Then you need to arrange for Memorandum of Association and Articles of Association. Also arrange to stamp your Memorandum and Articles. Make sure your documents are dated after the stamp dates.
- Get both these documents signed by at least two subscribers or more, in front of a witness.
- You also need to get three additional forms and fill them accordingly. These forms include the Declaration of Compliance, Notice of the Office location of registered company and information about the director and managers of the company.
With the following documents prepared and filled, next step is to present them to the ROC with a registration fee. The exact provisions include:
- 3 copies of Stamped and signed Memorandum and Articles
- Three additional forms
- If you have agreement regarding Memorandum and Articles, present it
- If you have any agreement with the prospected director or manager, include it.
- The Company name availability letter, which was issued by ROC
- Power of Attorney by subscribers given to a particular person for correcting errors in the given documents and papers
- The registration fee
After you submit these documents, your documents will be processed and you will be awarded with the Certificate of Incorporation by ROC.
For a public limited company formation, the procedure is the same with some additional steps listed below:
- Submission of Form No.29 which is basically a Consent to act as a Director
- Arrangement for payment of application and allotment money on shares already taken or agreed to be taken by the Directors.
- Filing of the Statement in Lieu of Prospectus with the ROC in schedule-iv of the Companies Act.
- Filing a declaration in Form-20
- And finally obtaining the Certificate of Commencement of Business.
The process of registering a company in India takes around 40 days. If the steps seem daunting, you may even take help of professional CA’s and lawyers who can help you with all the procedures. You can do a research on Google to find reliable professionals for this important task.
You can find more information about the various process, rules and forms involved in incorporating a company on the Ministry of Corporate Affairs website.