The entrepreneur using his or her name as a brand to grow customer recognition should consider what that name will be worth, not just to customers, but also to prospective partners, investors, and buyers.
When it comes to naming your business after yourself, sometimes thinking about where you will end is lost in the mix. Should your business bear your name, or should the family business bear the family name? How will these choices affect your heirs in the future?
While some may consider the decision a matter of personal or family pride, or even a matter of vanity, that doesn’t mean there aren’t important issues in play. The consequences of naming your business was tackled recently by Forbes in an article titled “How Having Your Name On Your Business Limits Your Options.”
The essential point, however, is that putting your name on the company forges an inextricable link. On the plus side, this can be a boon if your business and brand do well, especially if your heirs carry on the business. On the down side, doing so may not be in the best interests of the business, or even your heirs.
The Forbes article offers a review of some practical considerations and problems when choosing your business name. Remember, although it is a tough decision, you should begin your business with the end in mind. Whatever you decide to name your business, you should seek competent legal assistance in the set up and organization of your business entity.
Reference: Forbes (August 17, 2012) “How Having Your Name On Your Business Limits Your Options”
There’s simply nothing worse for wealth transfer planning than an unforeseeable future, but that’s exactly what we face.
http://www.emergencylights.net/categories/Exit-Signs
Posted by: Phollaine jane Lapar | 09/14/2012 at 06:09 AM