14 February 2023 – A new study has shown that small businesses with funny business names attract more customers and make more sales.
Every new small business owner faces the challenge of coming up with a name for their new venture. And new research suggests that the choice of name could be the difference between success or failure.
A survey of over 2,000 consumers conducted by insurance provider Simply Business revealed that creative or funny business names can boost sales and increase customer numbers.
With almost a third of people surveyed saying they are more likely to buy from a small business that has a funny or witty name, it pays to come up with a catchy business name when naming a new business.
Creative Business Names Get Noticed
The study by the insurer has shown that 28% of customers are more likely to shop with a small or local business if it has a funny or witty name.
With 64% saying that they are more likely to notice a small business with a creative name that is funny or clever, it seems clear that a funny name can give a small business the edge over its competitors.
Asked why they would notice a local business with a funny name more, 57% said because it makes the business more memorable. 55% replied that a witty name makes a business stand out from the rest.
51% said that they appreciate the creativity that went into coming up with the name. The same amount of people (51%) said that it adds personality to the small business.
The results of this study show that consumers do pay attention to business names, which means it’s important to choose them carefully. It’s also easier to build a brand with a name that shows personality and will stick in people’s mind.
It’s incredible the impact a business name can have on your business – not only are you more memorable but it shows your personality and sense of humour.Alan Thomas, UK CEO at Simply Business
A creative business name together with a cleverly designed logo could boost the chances of success and increase the customer base as well as sales.
Most People Prefer Shopping With Small Businesses
Simply Business’s survey has also given small businesses some good news. 88% of respondents said that they prefer to shop at small, local or independent businesses rather than larger chains.
This shows that consumers are aware of the importance of small businesses to their local communities.
When asked why people prefer to shop local or small, 62% said that they wanted to support their local businesses. 57% said they wanted to support their local community, which they can achieve by supporting small local businesses.
41% of respondents prefer to shop small because they want their money to make a direct impact. 39% said that the service is better with small and independent businesses compared to larger chains.
With people already keen to shop with local businesses, a memorable name that shows sense of humour can improve the chances of small shops to stand out even further.
With six million SMEs across the UK, acting as the lifeblood of our communities and collectively providing trillions of pounds to the UK economy, the competition out there is fierce. A smart business name has never been so important – it’s usually the first thing a potential customer will interact with.Alan Thomas, UK CEO at Simply Business
Beware Of Copyright Or Trademark Infringement
But when choosing a business name it is important to stay clear of trademark or copyright infringement of existing brands, as the recent example of Lord of the Bins has shown.
The Brighton-based waste collection company leaned on the popular book and film franchise Lord of the Rings for their witty business name.
Now they have received a cease and desist order from Middle-earth Enterprises, asking the company to stop using this name. The letter sates that the company owners are in breach of the franchise’s trademark.
The letter further demanded that the waste collection business also change its slogan “One Ring To Remove It All” for the same reason.
The owners of Lord of the bins now have to invest thousands of pounds in rebranding their business to avoid being sued by Middle-earth Enterprises.
And cases like this are not a rarity. Many small businesses believe that the big brands won’t find out or won’t care. But these large corporations are keen to protect their brands.
They don’t want their customers to associate some other business with their brand, even if both businesses are in different sectors.
So while funny business names can help a small business to stand out from the crowd and increase sales, it pays not to infringe on any existing trademarks.
Otherwise, the witty name could cost a lot of money rather than bringing it in.