It was their family names that doomed the young lovers in Shakespeare’s Romeo and Juliet. Yet could the name you choose for your business create a company star-crossed with success?
As human beings, we evaluate information quickly and make judgements in a snap. In fact, Harvard research has pinpointed snap judgements can be made in as little as three to four seconds of meeting someone. For reference, this is barely enough time to say hello, but the human brain has already made a friend-or-foe decision.
As evidence of our evolutionary past, these snap judgements make sense. However, they might spell disaster for individuals and businesses with the wrong names. Can a name really determine whether you succeed or fail? Let’s take a look at some evidence:
Looking at roughly 700 stocks between 1990 and 2004, the researchers discovered on the first day of trading, those with the simplest names earned 11 percent more than the stocks with the most difficult names. The difference increased to 33 percent when taken over the course of a whole year
An example in the business world is the divergent paths of two personal finance focused startups. Both Mint and Wesabe were tools to help individuals track their personal finances. Only one is still in the game now. Can you guess which one? An account from a higher up at Mintpinpointed the name as one of several reasons Mint was ultimately more successful.
When creating a company, you need to reduce the barriers keeping customers and investors from buying into your vision. If your company name is hard to pronounce, difficult to spell, or makes little sense in relation to your product, you’ve unknowingly created a barrier to your own success.