Three important checks every business owner should make before choosing their trading name
Three important checks every business owner should make before choosing their trading name
After 3 years of trading the business was financially starting to get some traction in the marketplace. Her customer base had grown exponentially in the last year compared to the previous 2 years and Judith could now see the light at the end of the tunnel.
The risk now was that existing customers may mistakenly telephone this new company, looking for her. The unique identity of her brand had been tarnished. That immediately devalued her business.
Her business lost value overnight
When you sell a business a significant part of its assets is its goodwill. Goodwill represents the relationship your business has with its customers. You can't see goodwill like you can see office furniture, but it does have a value. Your brand and identity is the physical representation of that goodwill. That's why businesses go to the expense of trademarking their brand name and logo.
A trademark application gives you exclusive use to that name and design and makes it much easier for you to stop another business using a name or logo which is similar.
Judith didn't have trademark protection
Unfortunately, Judith didn't have trademark protection for her name or logo. That meant she couldn't rely on the trademark infringement procedures to stop the other company in their tracks. Instead, her only remedy was to bring court proceedings for "passing off", which is a claim you can make in the regular courts. However, she was advised that this would be a long and costly process. She didn't have the funds to commit to protracted and expensive litigation.
She couldn't file a trademark application either
Faced with the prospect of expensive litigation, Judith investigated filing her trademark application. That was when the news got worse. Her rival company had already filed their application and had it accepted. Challenging that registration now would involve further expense with no guarantee of success. She had very few options left.
Judith only had one real option
The only option left to Judith was to re-brand her business. That would entail:
1. Design of a new logo and mark.
2. Registration of a new domain name.
3. Throwing away all existing pre-printed marketing material.
4. Getting new business cards, stationery and promotional literature.
The cost wasn't cheap, but was less expensive than litigation. It was almost like starting out all over again, except this time Judith was going to do it properly.
The three steps to take when choosing your trading name
The first thing most businesses do when they choose their trading name is to search the Companies Register to see whether the name they want is available. However that is probably the least important thing to do, since your company name is irrelevant. It is your trading name that matters as far as goodwill is concerned and that can be completely different to your company name.
The second thing most businesses do is check the availability of the domain name they want. This is important since an increasing amount of business is either being transacted online or being driven by an online presence. If you don't have a memorable domain name, you could be missing out on valuable business.
The third step (and one which a lot of businesses forget) is to check the IPONZ Trademark Register. This can be done by going to www.iponz.govt.nz. If there is a similar name already registered in the same class that you want, then think again about your name. If you are considering trading abroad you may also want to check the trademark registries of the other countries in which you envisage you will have a trading presence in the future.
Judith wasn't going to make the same mistake twice
Judith neglected to search the IPONZ Register the first time around. This time she wasn't going to make the same mistake. From her list of 4 possible names she found 1 that checked out under each of the 3 criteria.
Three important checks every business owner should make before choosing their trading name - To learn more about this author, visit Michael Smyth's Website.
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Why it was no compliment to Judith
After 3 years of trading the business was financially starting to get some traction in the marketplace. Her customer base had grown exponentially in the last year compared to the previous 2 years and Judith could now see the light at the end of the tunnel.
The risk now was that existing customers may mistakenly telephone this new company, looking for her. The unique identity of her brand had been tarnished. That immediately devalued her business.
Her business lost value overnight
When you sell a business a significant part of its assets is its goodwill. Goodwill represents the relationship your business has with its customers. You can't see goodwill like you can see office furniture, but it does have a value. Your brand and identity is the physical representation of that goodwill. That's why businesses go to the expense of trademarking their brand name and logo.
A trademark application gives you exclusive use to that name and design and makes it much easier for you to stop another business using a name or logo which is similar.
Judith didn't have trademark protection
Unfortunately, Judith didn't have trademark protection for her name or logo. That meant she couldn't rely on the trademark infringement procedures to stop the other company in their tracks. Instead, her only remedy was to bring court proceedings for "passing off", which is a claim you can make in the regular courts. However, she was advised that this would be a long and costly process. She didn't have the funds to commit to protracted and expensive litigation.
She couldn't file a trademark application either
Faced with the prospect of expensive litigation, Judith investigated filing her trademark application. That was when the news got worse. Her rival company had already filed their application and had it accepted. Challenging that registration now would involve further expense with no guarantee of success. She had very few options left.
Judith only had one real option
The only option left to Judith was to re-brand her business. That would entail:
1. Design of a new logo and mark.
2. Registration of a new domain name.
3. Throwing away all existing pre-printed marketing material.
4. Getting new business cards, stationery and promotional literature.
The cost wasn't cheap, but was less expensive than litigation. It was almost like starting out all over again, except this time Judith was going to do it properly.
The three steps to take when choosing your trading name
The first thing most businesses do when they choose their trading name is to search the Companies Register to see whether the name they want is available. However that is probably the least important thing to do, since your company name is irrelevant. It is your trading name that matters as far as goodwill is concerned and that can be completely different to your company name.
The second thing most businesses do is check the availability of the domain name they want. This is important since an increasing amount of business is either being transacted online or being driven by an online presence. If you don't have a memorable domain name, you could be missing out on valuable business.
The third step (and one which a lot of businesses forget) is to check the IPONZ Trademark Register. This can be done by going to www.iponz.govt.nz. If there is a similar name already registered in the same class that you want, then think again about your name. If you are considering trading abroad you may also want to check the trademark registries of the other countries in which you envisage you will have a trading presence in the future.
Judith wasn't going to make the same mistake twice
Judith neglected to search the IPONZ Register the first time around. This time she wasn't going to make the same mistake. From her list of 4 possible names she found 1 that checked out under each of the 3 criteria.
Three important checks every business owner should make before choosing their trading name - To learn more about this author, visit Michael Smyth's Website.
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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