Don’t make your brand too personal

Choosing a name for your new venture? Remember, it's not all about you, writes Manar Al Hinai.

When I established my consultancy a few years ago, friends urged me to put my name to the business. “You are the brand,” they told me. But I did not agree.

There are a number of reasons to make your brand eponymous. Maybe you want to create a legacy, a name that your great grandchildren would be proud to be associated with, or maybe – as my friends suggested – you are the brand; this is particularly the case in the arts where it can be important to put your personal stamp on your work.

If you are offering a service or product to clients – such as a small law firm, an art illustration studio, a bakery or a fashion atelier – then, yes, having your name on the business is great, even essential, as customers may expect to be dealing with the founder. It also offers a more personal appeal. However, if you have big plans for your company, to perhaps expand globally, then it may be wise to begin with the end in mind.

Here are some reasons why putting your name to the business is not always the best idea:

• It becomes a burden when you sell

While you may be great at managing your business, your offspring may not fare as well or they may face a situation that requires them to sell the business or change its location. By associating your name with a business you may overprice it or even hold on to it because it’s your name rather than selling to another company that may not value its history. Holding on to something because you are too proud to sell it may lead it to its failure – and all because of your emotional attachment. Think of it like a pendant. You would happily sell it on if it did not have an emotional value. You may even agree a price with a potential buyer, but because that pendant was handed down to you from your great grandmother, you think twice before selling it, or even try to sell it for more than its worth. A family name may also limit future ownerships and management options. A large investor may want to put their name to the brand instead or suggest another name with a more global appeal.

• You cannot transfer the name to your next venture

Imagine your eponymous brand does really well and that you feel ready to move on to your next adventure either by selling or bringing in management to run it. Now because of your association to the brand’s name, it may be hard to establish another company with that branding. The new owners’ success may perhaps depend on your name and they will not want to change it.

• Your reputation could be at risk

Let’s imagine after years of hard work you build your dream company, and everything is going smoothly. The time has now come for other investors to take charge, and you plan to step down. Although they may be taking full control while you reside somewhere sunny and far away, people would still associate the company’s performance, ethical choices and its ups and downs with you.

So when naming your company, keep in mind the limitations that come with having your name associated with it. What you choose will have a lasting effect on your company and you as an individual.

Manar Al Hinai is an award-winning Emirati writer who manages a branding and marketing consultancy in Abu Dhabi. Twitter: @manar_alhinai.

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