Your Startup Name Matters More Than You Think: A Complete Guide

This article is based on a conversation on the Raw Startup video series. Please find a link to the video at the bottom of this article.

In 1996, two Stanford students launched a startup called "BackRub." Two years later, they changed it to Google and created one of the most valuable brands in history. Imagine if Larry and Sergey had stuck with BackRub. Would they have become a $1.5 trillion company? Would people be saying "let me BackRub that" instead of "Google it"?

Your startup name isn't just a label—it's the foundation of everything you're building. Get it wrong and it could be silently sabotaging your growth.

Why Your Startup Name Actually Matters

Before diving into the steps of finding the perfect name, let's understand why it matters more than most founders realize. A study by Nielsen found that 59% of consumers prefer to buy products from brands they recognize. Your name is the cornerstone of that recognition.

Here's what the right name does for your startup:

Creates instant credibility with investors and customers
Reduces customer acquisition costs - people remember and share good names
Allows expansion beyond your initial product - imagine if Amazon called itself "Online Books"
Increases your valuation - premium domains sell for millions for a reason

The Stripe Example

When Stripe first launched, the founders called it "/dev/payments" (yes, with the slashes). After quickly realizing their technical name was confusing to potential customers, they rebranded to Stripe. That simple visual name perfectly captured what they do—moving money in straight lines between accounts. Today, they're worth over $50 billion.

A technical name might have limited them to developer customers, but Stripe works for everyone, from a sole entrepreneur to a Fortune 500 company.

The 7 Types of Startup Names

Understanding what type of name you're looking for is crucial. Here are the seven main categories with their characteristics:

1. Eponymous Names

Definition: Brands named after their founders Examples: Dell (Michael Dell), Ferrari (Enzo Ferrari), Tesla (Nikola Tesla) Pros: Strong personal connection, authentic story Cons: Tied to individual reputation, hard to separate from founder

2. Descriptive Names

Definition: Straightforward names that tell you exactly what the company does Examples: Toys"R"Us, Burger King, Bank of America Pros: Immediately clear what you do, easy to understand Cons: Can be limiting as your business evolves, hard to trademark

3. Acronym Names

Definition: Names made from initials or abbreviations Examples: CNN (Cable News Network), DKNY (Donna Karan New York), IBM (International Business Machines) Pros: Help with global expansion, easier to remember when shortened Cons: Often lack personality, can be confusing without context

4. Suggestive Names

Definition: Dictionary words repurposed for your brand that hint at attributes without being literal Examples: Amazon (suggests vastness), Nike (Greek goddess of victory), Oracle (implies wisdom) Pros: Create strong brand associations, flexible for growth Cons: Popular words may be taken, can be harder to trademark

5. Associative Names

Definition: Names that create immediate mental connections to desired qualities Examples: Puma (evokes speed and power), Apple (suggests simplicity), Jaguar (implies luxury and speed) Pros: Instant emotional connection, memorable Cons: Association might not translate across cultures

6. Non-English Names

Definition: Names derived from other languages or cultures Examples: Toyota (from founder's family name), Sony (Latin for "sound"), Zara (derived from Zaragoza, Spain) Pros: Feel exotic or distinctive, often easier to trademark Cons: May be hard to pronounce, meaning might be lost

7. Abstract Names

Definition: Invented words with no inherent meaning Examples: Exxon, Xerox, Kodak Pros: Complete freedom to build brand identity, easier to trademark Cons: Require more marketing investment to establish meaning

The 5-Step Process to Find Your Perfect Name

Step 1: Define Your Naming Strategy

Start by understanding what type of name fits your vision:

Determine which of the 7 types aligns with your brand goals
Consider your target audience and market
Think about global expansion plans
Define if you want descriptive clarity or creative flexibility

Step 2: Brainstorm with Constraints

Set clear parameters for your brainstorming:

Keep it short (4-6 letters ideal)
Make it globally pronounceable
Avoid being too limiting for future growth
Use AI tools like ChatGPT once you've defined your direction
Consider if it works beyond your initial product

Step 3: Check Availability and Research

For every name you like, thoroughly investigate:

Check domain availability (.com is ideal, but .org can work)
Search for existing trademarks
Google the name to see what comes up
Check social media handles
Investigate who owns similar names
Test pronunciation in different languages

Step 4: Make the Final Decision

Base your decision on these critical factors:

Memorable and short (easier to remember and share)
Pronounceable globally (important for international growth)
Unique enough for SEO (though not always critical)
Flexible for expansion (avoid boxing yourself in)
Can you "own" the name? (will your company be first association?)

Step 5: Acquire and Implement

The final step involves securing and using your chosen name:

Negotiate domain purchase professionally
Register trademarks in relevant categories
Secure social media handles across platforms
Start using consistently in all communications
Test logo concepts to see how it works visually

Real-World Examples: The Cost of Getting It Wrong

Apple's $500 Million Lesson

When Apple launched in 1976, they were solely a computer company. But when they expanded into music with iTunes and iPod in 2001, they faced a problem: The Beatles had established Apple Records in the 1970s.

The result? Apple had to renegotiate their agreement and reportedly paid the Beatles' Apple Corps around $500 million. This happens when you don't consider future expansion possibilities.

Amazon's Smart Choice

Amazon started as an online bookstore but chose a name that allowed them to expand to selling "everything." If they'd called themselves "OnlineBooks," they would have painted themselves into a corner.

Common Naming Mistakes to Avoid

Choosing names that are too descriptive (limits growth)
Going with names that are hard to spell or pronounce
Not checking trademark conflicts thoroughly
Picking names too similar to competitors
Choosing names that don't work internationally
Not considering how the name will sound in conversation
Rushing the decision without proper research

The Investment Perspective

Premium domain names can cost anywhere from hundreds to millions of dollars. Here's why investing in the right name is worth it:

Instant credibility - short, memorable names make you sound established
Long-term value - as your company grows, so does the domain value
Marketing efficiency - easier to remember means lower customer acquisition costs
Expansion flexibility - gives room to grow beyond initial product

Remember: You'll likely use this name for years or decades. The cost of a great domain is minimal compared to the cost of rebranding later.

Conclusion

Finding the perfect startup name requires creativity, research, negotiation, and sometimes significant investment. But when you find a name that's short, memorable, flexible, and truly yours, it becomes the foundation for building your entire brand.

The name you choose today will either accelerate your growth or hold you back for years to come. Choose wisely, invest appropriately, and make it your own.

Remember: Your startup might pivot several times, but your name will likely stay with you throughout the journey. Make it count.

Watch the full video where we follow the complete journey of naming Vota, a revolutionary restaurant rating platform that connects people with personalized recommendations based on their unique preferences. See the real negotiations, strategic decisions, and final acquisition process in action on Raw Startup