A holding company is a business entity —oftentimesa limited liability company (LLC) orcorporation — thats only purpose is the buying andoperation of other companies. It does notsell or buy any products or services, although thecompanies it owns might.
Naming your holding company is likely not a high priorityfor many entrepreneurs as there aremany legal steps to go through before naming yourcompany becomes a reality, but this doesnot lessen the importance of a good name. As soonas it is reasonable to do so, significantthought should be put into deciding the name of yourholding company.
Despite a holding company not directly selling anyproducts, the importance of its name is stillvery significant.
It is important to pick a name that accurately reflectsthe purpose moving forward of yourcompany, as well as being memorable and unique toensure you stand out in a crowdedbusiness ecosystem. This can be a difficult processfor many people, but just because you don’talready have a name for your holding company doesmean you can’t still come up with theperfect name. Choosing a good name for your holdingcompany can seem like a complicatedprocess, but there are many rules that when followedcan lead you in the right direction.
Find a reference:
Is there a business you already admire, or are therealready established competitors in yourfield? Oftentimes these companies can be a great pointto start when choosing the name foryour holding company. This can mean following thesame process that these companiesfollowed when choosing their names or just takinginspiration from their choice.
Don’t get too specific:
Many holding companies make the mistake of limitingtheir potential scope by picking a namethat is too specific, either in location or subjectmatter. Avoid names of places or specificproducts in your holding company name to avoid confusionand allow for a smooth expansion ofyour holding both in location and assets. Althoughhaving a specifically named holding companywill not stop you from owning other assets, it canbe confusing in a way that is damaging to theimage of the holding company.
Create a marketable name:
Many of the basic rules of marketing apply even moreso when choosing the name of yourholding company. A name needs to be memorable, unique,succinct, easy to spell and say, andmore. This can be a lot of requirements for many businessowners, but the importance offollowing these requirements cannot be understated;breaking these rules can have significantnegative effects on the image and reputation of yourholding company.
Choose a name that is legal and available:
There are a large number of companies registered ineach state, which means a lot of potentialthat your name has already been used by another business.It is a good idea to check theSecretary of State and the Patent and Trademark Office’swebsites to make sure that yourchosen name is not already taken in a way that wouldprevent you from using said name foryour holding company.
Another part of making sure that your chosen nameis available is checking for the availability ofyour desired domain name. In the technology age, everybusiness can benefit from having anassociated website, but this can be difficult if thedomain name associated with your business isnot available. Because of this, it can be a good ideato avoid choosing names that do not havean available associated domain name.