IowaMicroLoan Program

IowaMicroLoan is a program created to help Iowans realize their goal of achieving business success when there is a solid idea, team, and commitment to make it work. IowaMicroLoan was created for those microbusinesses that are considered on the fringe of risk-bearing capacity for most traditional financial institutions. The IowaMicroLoan program was created by the Iowa Foundation for Microenterprise and Community Vitality (IFMCV). 
IowaMicroLoan offers Iowa Residents:

• Financing for start-up, expansion and refinancing of Microbusinesses in Iowa
• Financing of loans of $5,000 up to $35,000 for a six year term
• Co-financing with a local lender or loan pool up to $105,000
• Credit approval within 10 working days of receiving a complete credit application and business plan
• Technical Assistance grants up to $500/client/year
• Local team building assistance to help you succeed
• The ability to improve your credit score through IowaMicroloan reporting

Have you used the Iowa MicroLoan program in your business? ?
What was your experience?
Is this a topic you want to know more about through the New Iowa Entrepreneur's Coalition?
Check out their web site http://iowamicroloan.org/ and give me feedback through this blog or through the NIEC web site.   

Ten Tips to Ignore When Starting a Business

Ten Tips to Ignore When Starting a Business
by Cathy Goodwin

Summary: Everyone has advice for you when you're starting a business, but it's not all good advice! Here are ten tips you'd be better off ignoring.

1. "Career freedom means starting a business."
Clients often assume they can reach career freedom only by starting a business. I know dozens of people who feel very free in a corporate setting. They swim easily in the corporate stream and learn to balance their lives. Some even return after successful entrepreneurial ventures.

2. "Don't worry, be happy."
Some advisors tell you, "You'll be great," even if they secretly believe you're following a harebrained path that is doomed to fail. Do your own research and get second and third opinions.

3. "Visualize success."
While I support visualizing and attracting, I do not believe you can attract business from a non-existent target market. Better to attract prosperity and fulfillment. You might also try to attract knowledge and discernment so you can evaluate your various advisors.

4. "If you can dream it, you can do it."
You can dream of meeting the Queen of England at your local Wal-Mart but you may have to wait awhile. The reverse is often true -- you must have a dream before you experience the reality -- but some people manage to skip the journey and enjoy the arrival.

5. "If other people can have a successful business, you can too."
Unless you strongly resemble those "other people," they're irrelevant.

6. "You will probably fail."
Your advisor may be using fear to motivate you to work harder or sign up for his success course. Do your own research.

7." If you feel energized about your goal, you will be successful."
Feeling energized just means you enjoy some aspect of what you are doing. Figure out what you enjoy and design a life to include more of it.

8. "You can always go back to what you were doing before."
After months or years of trying to start a business, you and your former career will be different and your former colleagues will view you differently. Better to begin with a job that you can leave if you become successful. Stay in a position of power.

9." You have had a successful career so far and you'll figure out how to be successful now."
Basketball players do not always thrive on football teams and baseball is a different game altogether. Enough said.

10. "You will be fine; you just need more confidence."
If you lack self-confidence in several areas of your life, see a clinician. Otherwise your lack of confidence in your entrepreneurial skills is probably reality-based and should be viewed as a signal to find another advisor.

Cathy Goodwin, PhD, is an author, career consultant and speaker, who combines solid expertise with humor, common sense and intuition. Visit her at http://www.makewritingpay.com or for more info, e-mail Cathy at cathy@makewritingpay.com.

How To Market To People Who Are Not Like You - Business And Breakfast

How To Market To People Who Are Not Like You - Business And Breakfast

One of the most important issues to address within your marketing plan is new market segmentation. No longer does mass marketing and mass media effectively reach your audience. Diversity marketing is the new norm, and this doesn’t simply mean racial diversity but extends to gender, race, age, life stage, sexuality, special interests, etc. By recognizing and segmenting these different groups, you can tailor your product/service and its message to reflect customers’ uniqueness. Kelly McDonald will share her insights on how to effectively segment new markets and then devise messaging to reach them.

This opportunity is made possible through sponsorship assistance from MyEntrenet at the Regional Business Development and Incubation Center at the University of Northern Iowa. Maureen Collins - Williams, Director

Join us for breakfast, networking and a wonderful presentation.

Kelly McDonald is a marketing and advertising expert with more than 20 years of global advertising agency experience, in both the general and Latino markets. Prior to starting her own company, Kelly was Director of Client Services at one of the nation’s top Hispanic ad agencies, where she worked with Nissan, Bank One, Kimberly-Clark and Budweiser. Learn more about Kelly McDonald and her business at McDonald Marketing.

The New-Iowa Group is the home for the Coalition and is sponsored in part by American Express OPEN and by E-Myth Benchmark. You can Contact Bob or Susan Clements at 888-959-0621 for more information about E-Myth Benchmark.

Date & time
Wednesday, September 9, 2009 7:30 AM
Location
StayBridge Suites
6905 Lake Drive
West Des Moines, IA 50238
1-515-223-0000
Who's organizing?
Kent Sovern
“ Look for the NIEC Signs ”
Price
$10.00 per person – RSVP at http://www.meetup.com/New-Iowa-Entrepreneurs-Coalition/


New Iowa Entrepreneurs' Coalition The New-Iowa Group is the home for the New Iowa Entrepreneurs' Coalition which is sponsored in part by American Express OPEN and by E-Myth Benchmark. Please visit our Sponsors' web pages and you can Contact Bob or Susan Clements at 888-959-0621 for more information about E-Myth Benchmark.

SMALL BUSINESS WEEK: ‘Building a Community around your business'

This is the week that small is big.

National Small Business Week begins Monday May 18, and the New Iowa Entrepreneurs’ Coalition will note the occasion with a series of education and networking events throughout Central Iowa. The Coalition's theme for the week is "Building a Community around your business".

The week will kickoff with two featured events on Monday. The first is a 'Lunch N Learn' titled 'Building Business Intelligence and managing reputation through social media'. The event will begin at 11;30 am at the The Des Moines Social Cub—1408 Locust in the Western Gateway.

What are your customers saying about you online? This workshop teaches you and your team how to harness listening and monitoring technology (Google Reader, Technorati, Twitter Search, etc.) for the purpose of scanning conversations in blogs, social networks, user forums, message boards and online communities for mentions of your business, competitors and other relevant topics. You'll also learn how to effectively engage your online audience on their own turf with honest, human-to-human discourse, as well as how to deal with detractors.

This session is conducted by Nathan T. Wright and Hillary Brown of Lava Row, a Des Moines-based social media education, consulting and strategy firm.

Register through the New Iowa Entrepreneurs' Coalition web site or through a hot link from the New Iowa Group web page. Tickets are $25/person. You may want to arrive at 11:30 for conversation and casual networking. Bring your own lunch…

Small Business Week Events continues at 5:30 PM with a second featured event —'Personally Powerful Presentations: Two-Minute Make-Over Moments.'

Our featured presenter is James Sandin of Dynamications, LLC who will explain how to present yourself and your business with power in "making over" your prospect's impressions and interests in you and what you are offering. It's the two-minute commercial approach supersized.

This meeting will be held at the RDG Offices at 301 Grand Avenue in downtown Des Moines. Register through the New Iowa Entrepreneurs' Coalition web site or through a hot link from the New Iowa Group web page.

You can download a complete listing of the Coalition's Small Business Week events from the 'FILES' section in the New Iowa Entrepreneurs’ Coalition web site. Visit the Calendar page for mote networking and education events.

Update on the American Recovery and Reinvestment Act: Help for Small Businesses

On Monday, Sen. Tom Harkin and Gov. Chet Culver hosted a community event at the Dallas Center - Grimes High School that offered participants insights into the details (as they are known) of the American Recovery and Reinvestment Act of 2009 (Recovery Act).

A panel for small businesses and workforce issues presented some very useful information and a few members of the The New Iowa Entrepreneurs’ Coalition were there to take notes. We were told that videocast of the event would be available but I have not found it yet.

Click on the title of the next section for a podcast from the SBA.

Here's a summary of the American Recovery and Reinvestment Act's programs specifically targeted to small businesses (as defined by the SBA) and the banks that lend to them.

We've all read about the bail outs for big banks and big businesses over the last several months. Now, the current administration has launched a series of programs specifically targeted to small businesses (as defined by the SBA) and the banks that lend to them.

The goal of the program, part of the American Recovery and Reinvestment Act, is to provide entrepreneurs and lenders some financial relief from the current economic crisis that will help encourage borrowing and lending to all small business, including start-ups. It also provides a new program to help businesses that are struggling to make payments on an existing loan.

This loan program, called the America's Recovery Capital (ARC) will soon offer deferred-payment loans of up to $35,000 backed 100 percent by SBA to viable small businesses that need help making payments on an existing, qualifying loan for up to six months. (Note: the existing loan does not have to be a SBA loan to qualify.) Repayment does not begin until 12 months after the loan is fully disbursed and will be for the principal amount only. (ARC loans cannot be made to cover payments on an existing loan that was guaranteed by SBA before February 17, 2009, the day the bill was signed into law.)

As of this writing, the final details on the ARC were still being worked out and the loans were not yet available. Check with your local bank or SBA Website to find out when these loans will be available.

The other part of the program involves up to $15 billion from the Treasury Department to unlock the secondary markets for small business loans. The secondary markets for 7(a) and first lien 504 securities has ground to a virtual halt over the last year. That, in turn, has made banks less willing to make the loans as they depend on these secondary markets to buy up their existing loans, thereby gaining liquidity for future lending. The government has now announced that the government will stand ready to purchase 7(a) and 504 first-lien securities. The goal is to encourage banks to make loans as they now have a ready buyer in the form of the Treasury Department committed to buy those loans from the bank once they are made.

In addition, to the above programs, the Act also includes temporary elimination of 7(a) and 504 loan fees. Fees for a 7(a) loan are based only on the guaranteed portion of the loan and depend on the size of the loan. Fees range from 2% to 3.75%. Fees for 504 loans generally run about 1.5% for the application fee. This, along with the fee to the mortgage lender, will be waived.

Also under "discussion" is the allowance for allowing some use of 504 funds restructuring of existing debt that was previously used to acquire fixed assets. Further guidance regarding this provision is expected to be released soon.

The SBA formally guaranteed participating banks 75-85% of their portion of 7a loan funds. They have now raised this guarantee to 90%, again in an attempt to decrease the risk to a participating bank and encourage lending to small businesses. This increased guarantee and loan fee waivers are good through the end of 2009 or until the designated funds for them are exhausted.

The Recovery Act includes other initiatives to help business owners with under $15 million in gross receipts, including targeted tax relief. If you experienced a loss in 2008, you can "carryback" this loss for up to the previous five years to receive a tax refund for taxes previously paid on your profits. Previous carrybacks were limited to two years. If, after applying this carryback to previous years you still have a net operating loss (nol), you can carry it forward for up to 20 years. This new extension applies only to businesses that have gross receipts of $15 million or less.

New extensions on depreciation rules allow you to accelerate depreciation taken on new assets purchased in 08 and 09.

Last year, lawmakers allowed businesses to recover the costs of capital expenditures made in 2008 faster than the ordinary depreciation schedule would allow by permitting these businesses to immediately write-off 50 percent of the cost of depreciable property, such as equipment, tractors, wind turbines, solar panels and computers acquired in 2008. Increase deductions mean less taxable profits to your business.

The new rules extend this 50 percent bonus depreciation allowed for property with a recovery period of 20 years or less for 2009. In addition, Code Section 179 which allows for accelerated depreciation for used or new assets, has been increased from $125K to $250K. Unlike Code Section 179, depreciation expensing that is available for new or used property, bonus depreciation is available only for new property or equipment.

Just remember, the more you increase depreciation for 09, the less you'll have available for future years. Contact your CPA or tax accountant about how these new provisions might allow you to decrease your taxable income for 09.

To find out more about these programs, visit the SBA website or the Des Moines Area SBA District Office to obtain a list of SBA-participating lenders in our area.

Our Small Business Development Centers (SBDC) are partially funded through the SBA. These offices offer free counseling and research to small businesses. They also are knowledgeable about other resources in your area and can connect you to other service provides and possible financing sources.

Finally, you will find a collection of other useful links by visiting the New Iowa Group web site and clicking on the 'Business Resources' hotlink.

Co-Working Townhall Meeting at Impromptu Studios

Impromptu Studio is hosting a "Townhall" meeting Wednesday March 25th at 7pm.

The Townhall meeting is aimed at three types of people and part of the meeting will address each:

• Those who want to learn more about coworking and Impromptu Studio.


• Those who interested in finding out what big announcements, including upcoming events, and changes Impromptu Studio has in store for it’s community.


• Those who are interested in lending a helping hand to make Impromptu Studio better than they found it.

The Townhall is a meeting where you can bring your questions and suggestions about coworking or Impromptu Studio. This is an open invitation to shape the way Des Moines works!

For those that are curious about who you might see at the Townhall…. some of the speakers that will be either talking about coworking, Impromptu Studio, or making an announcement include:
Brian Anderson of CoLab in Ames
Member, Andy Brudtkuhl of 48Web
Scott Kubie of Market Street Media Foundry
Member, Doug Mitchell of CreateWowMedia
Nathan T. Wright of Lava Row

We hope to see you there! During the Townhall meeting we will also be collecting video testimonials in our green screen room.

For more information contact Abbie Shipton aeshipton@gmail.com
(515) 868 - 0060 - Located at 300 Southwest Fifth StreetSuite 220 - Des Moines, Iowa 50309

The Elevator Speech Is Just An Introduction: What To Do Next!

Have you ever given your elevator speech and gotten an excited and enthusiastic response of "I need that!"? Most of us misinterpret this reaction and mis-play our response. We take this as a buying signal and move forward in full selling mode. We don't take the time to discover what they mean, or what they need, or what exactly they are reacting to.

We believe we have a real prospect in front of us, and take that statement as authentic and true. In a sea of lukewarm or non-responsive reactions, this seems a definite "yes" to our offerings. Realize that the elevator speech is no more than an introduction, and that an animated reaction may or may not indicate genuine interest. Here are some ideas for reacting to such a response:

1) Don't go into automatic sales mode, describing features and benefits. That is as welcome at this point as trying to French kiss a stranger you've just met. Interest shown is simply that--interest--and an invitation for further dialog. It is a mistake to jump on this type of casual comment and confuse it with a desire to buy.

2) Appropriate response on your part would be curious inquiry as to their meaning, listening, and dialog with great care to focus on the other person. Your purpose in this conversation might be things like learning about the needs BEHIND their statement of need, getting to know them better, or understanding their business. Don't make the mistake of taking your focus off the business aspect of the business conversation. It's not about befriending at this point, though that can likely come later.

3) The critical thing to be aware of is that you need to listen more than you talk. If you are blabbering and blathering about yourself or what you will do for them, your monolog will soon cause the other person to start to squirm and edge away. You cannot learn anything about them or their needs or their business by talking. You cannot build rapport or connection by talking. If you are talking, talking, talking--you are losing a chance for business.

4) Develop the art of questioning from genuine curiosity. This is not nosiness, manipulativeness, salesmanship, or "needs analysis". This comes from a true interest in and genuine curiosity about your fellow humans. This is a result of an ego-less and arrogance-free acceptance of all beings as valuable and worthwhile. The more that you genuinely feel this, and authentically come from and behave as if this is your truth--the more magnetically attractive you become. We are all attracted to those who are sincerely interested in us. It cannot be faked!

5) In the course of this conversation, what might you aim to discover? Of course, you want to learn what their true need is and why they reacted so positively to your elevator speech. Were they expressing a real need or simply a momentary reaction to your statements? You may want to learn a few essentials about their business and perhaps its current condition.

Typically though, these sorts of inquiries are premature and should be handled in a gingerly fashion. Often, you can glean information through observation--"reading between the lines", body language, inferences, and reactions.

6) There is plenty of time to discover what you need to know. There is no rush and no hurry. Take it easy and gently discover what you need to know. Never pry or inquire prematurely. Observe the reactions to your questions and don't "cross the line". Conversely, keep your business purpose in mind as you dialog. Use your business purpose to guide you in the conversation.

7) Always, always, always aim to develop relationships. Take the time to care. Get to know the true person. Be a caring presence. Develop trust. Be thoughtful. Think of others. Be present to the interactions.

8) Pay attention to how you can be of service to those you meet. Can you send them referrals? Can you provide them information? Can you connect them with a provider? Do you know someone who could help them? Do you know someone they could help? Could you increase their business, social or spiritual connections?

It's important to understand and realize that the elevator speech is simply an introduction. Don't mistake it for a definite desire to buy. It is simply an expression of interest in response to your concise description of your business. React realistically to these responses and you will move your marketing game further along every time you get such a response to your elevator speech.

Suzi Elton is a success coach working with highly creative types to create income that matches their talent. She has coached hundreds of clients to approach their goals strategically through tiny steps to bring about quantum leaps.

Learn more about the author, Suzi Elton.

EntreFest! 2009 - Still Time to register

Iowa's two-day conference for small business, will take place Thursday and Friday, March 5 and 6, at the Marriott Hotel and Convention Center in Coralville.

EntreFest! provides business owners and budding entrepreneurs an opportunity to learn, share and celebrate the entrepreneurial spirit.

Who Should Attend?

EntreFest! will offer valuable information for a wide audience. Small business owners, new business owners, community leaders, and students alike will all benefit from the knowledge shared by experienced presenters including exciting keynote speakers, entrepreneurs and some of Iowa’s premier service providers!

Why Attend?

Learn from experienced presenters about best practices and new initiatives and opportunities for small business. Find out about new sources of capital that are available. Network and share experiences with fellow business owners from across the state. Meet with an extended group of Iowa service providers all in one location. Learn, share and celebrate small business ownership in Iowa!

EntreFest! is presented by a collaborative committee of Iowa's premier service providers including the UNI Regional Business Center and UNI Business and Community Services division. The conference is $79 per person.

For more information contact Amy Kuhlers at 319-273-4328 or amy.kuhlers@uni.edu.

The New Iowa Blog is sponsored in part by American Express OPEN - and the New Iowa Group

Scare Your Kids - Friend them on Facebook!

The Graying of Social Networking Sites

Mark Marich

Facebook, MySpace, and many other social networking websites got their starts as places for college students and other youth to interact online. Today, as a new Pew Internet and American Life report shows, online social networks are regular part of the online experience for all of us.

The study, "Adults and Social Network Websites," shows that the share of adults with a profile on an online social network has quadrupled in the past four years. In 2005, only 8% of adults had such profiles compared to 35% today. Because adults make up a larger part of the population, this share means that adults are now the primary users of online social networks.
MySpace is far-and-away the leader for adults with 50% of that demographic's users. While Facebook currently sits at 22%, my non-data-supported guess (based merely on old friends popping up daily) is that it will narrow that gap before too long.

Given that 89% of all adult users joined these types of sites to stay in touch with friends, it isn't surprising that LinkedIn is in a distant third at 6%. It is, however, the site of choice for those of us fostering business or professional networks. Sixty-seven percent of LinkedIn users use it to 'Make new business or professional contacts'.

The percentage of users who use LinkedIn to flirt?

Zero. Zip. Zilch.

I suppose that isn't a big surprise either.

Check out this short video -

Seth Godin on social networking and small business

15 Entrepreneur Blogs Worth Reading

Posted by Wendy Bounds
The best entrepreneur blogs – and often the most successful ones — do more than just promote the entrepreneurs or their projects. Star power can draw attention, but it won’t sustain it if the blog doesn’t “give.”

Give is a broad term. You can give tangible tools and information to help build a business. Or a motivational story that inspires someone to try an idea. You can give a laugh. You can give food for thought. You can give debate. You can give of yourself, and if you’re interesting enough, people will come back for more. Below, some examples of entrepreneurs who do this:

Dominate a Niche:Tom Szaky writes The Eco-Capitalist, a blog about driving profits by being environmentally and socially responsible. Mr. Szaky is chief executive officer of Terracycle, a company that finds creative ways to reuse waste in products like plant food, cleaners and tote bags. Recent posts include: “Will Your Customers Pay to Go Green?”

Ecommerce blog Get Elastic is another example. The blog shares general strategies for selling on the Internet. Recent posts include: “9 Privacy Policy Usability Tips,” “Cart Abandonment,” and “Dads and Grads: Missed Merchandising Opportunities.”

Motivate/Inspire/Teach: Two well-known bloggers in this category are Seth Godin and Guy Kawasaki. Mr. Godin was founder of Yoyodyne, an interactive direct-marketing company, which Yahoo Inc. acquired in late 1998. He is an author, blogger and public speaker, and his marketing blog often inspires by giving broader direction in business and life. (Recent posts talk about serial numbers and financial advice for grads.)

Mr. Kawasaki is a managing director of Garage Technology Ventures, an early-stage venture-capital firm. He’s an author and public speaker and his blog, How to Change the World, also includes a link to a job board, which is a motivator. Like Godin, he often provides usable lists to readers. One example: “The Top Ten Stupid Ways to Hinder Market Adoption.”
Mike Licht, NotionsCapital.com @ flickr.com

Kevin Kelly’s Lifestream is in this vein. Mr. Kelly, who helped launch Wired magazine in 1993, recently posted about the “Power of Failure” and how to Bribe Your New Employees to Quit. (The ones that aren’t committed.) Malcolm Gladwell, author of the Tipping Point, is another such go-to blogger for entrepreneurs.

Offer Tools:Most entrepreneur blogs do some of this, though several specialize in it. WorkHappy.net by Carson McComas writes about “killer resources for entrepreneurs,” often calling out new online tools. Anita Campbell pens Smallbiztrends.com with tips and strategies on issues such as business plans, picking domain names and going mobile. So does John Jantsch’s Duct Tape Marketing and Drew McLellan’s Drew’s Marketing Minute.

Entertain and Promote:The best route to self-promotion is through entertainment. Holly Dunlap fuels marketing of her fashion company with a juicy, photo-laden online diary chronicling her dinners, parties and, sometimes, hangovers. Justine Ezarik, a graphic/Web designer and video editor, began transmitting her life via Internet video last year and has transformed that success into multiple avenues, including her blog, tastyblogsnack, where she dissects technology and entertains us.

“If You’re Interested in My Company……maybe you’re interested in me – or more about my company.” These blogs feed loyal customers’ desire to connect with a brand. The founders of Honest Tea, Seth Goldman and Barry Nalebuff keep such a blog. Craig Newmark of craigslist blogs regularly on anything he finds of interest (finches, politics and “Sex and The City”).
One of the most successful examples is billionaire entrepreneur and investor Mark Cuban, owner of the Dallas Mavericks. His Blog Maverick waxes on everything from cutting-edge technology to the NFL and salary caps and gets tremendous response from readers.

A warning: Readers have typically already bought your product, so don’t just flog it; give them something new to enjoy.

This list is just a start. We want to know what entrepreneur bloggers you think are doing a great job in a particular arena. What else should people be reading—and why?

Entrepreneurial Predictions for 2009

The Wall Street Journal’s entrepreneurship blog, The Independent Street, has made its predictions for what might happen in the world of entrepreneurship in 2009.

As with all economic sectors, the world of entrepreneurs will be dominated by how they respond to the economic downturn. As such, blogger Kelly Spors predicts a major uptick in entrepreneurial activity as downsized workers seek to start their own companies.

Some other trends to watch for include: a renewed focus on bootstrapping (as opposed to accessing outside finance), a rising wave of foreclosures buffeting entrepreneurs, and a growing small business interest in government contracting. “Predictions for Entrepreneurship in 2009,” was posted on December 30, 2008 at The Wall Street Journal’s entrepreneurship blog, The Independent Street.

2009 Predictions - MSNBC 'Your Business' Video

What’s in a Name? The First Step in Branding Your Startup

By Lynne Meredith Schreiber

It took an episode of I Love Lucy for Troy and Nancy Scheer to decide on a name for their Dallas-based marketing and advertising company.

“I saw Desilu as the name of their production company,” Troy says. “We thought about what Troy and Nance could be if combined – Trance. It made the name personal, yet something that fit with what we were doing.”

Sometimes finding a name for your business is as easy as that. And sometimes it’s much, much harder. Follow these rules and you’ll be on the right track.

Let’s Get Serious
“A company name should be hard to forget and easy to spell,” says David Crosbie, CEO of Leostream Corp., in Waltham, Mass. “It can’t be too cutesy, otherwise you’ll be mistaken for an L.A.-based hair salon.”

A company’s name should explain in part what the business does, says Crosbie, who has named three companies including Leostream, a provider of conversion software. He based that name on the first computer ever used in business, the Leo Mark III, and “stream” was added “to convey the idea that this business flowed from the original machine,” he says. “Of course, now everyone thinks I’m fond of lions.”

The right name can make a big difference. Pick a loser and you’ll see potential sales, client contacts and repeat customers flow away downstream.

A good entrepreneur spends as much time naming his business as he does developing his business plan, choosing a market and picking a location. Yet almost any name can be effective if it’s followed by an appropriate marketing strategy.

“Acura” was coined by San Francisco, Calif.-based NameLab for Honda Motor Co. It has no dictionary definition but suggests precision engineering, which is what NameLab founder Ira Bachrach wanted. His staff started with the word root “acu,” which means “precise” in many languages. Starting with a meaningful word segment gives startups a better chance of creating meaningful names.

Name It Yourself or Hire a Pro?
If you’re nervous about naming, hire someone to help. Professional naming services can be pricey, costing a few thousand dollars to $35,000 or more, but their elaborate systems lead to the creation of savvy and successful names. (They also know a thing or two about trademark laws.)

Mine dictionaries, magazines and favorite books for ideas. Naming-firms come up with as many as 1,000 potential names to start with; if you’re going it alone, shoot for 10 workable names – you’re likely to eliminate half right off the bat.

Decide what you want the name to communicate. Ideally, it should convey key elements of your business – what you do, who your market is or where you’re located.
But don’t be too local. If you ever want to expand, a local moniker keeps you pigeon-holed in town.

Lonnie Pacelli named his first Seattle-based business after his mother, Concetta, but he changed the spelling to make it easier to find on the Web. When it came time to name his Ascend Business Solutions, Pacelli gave it a dual meaning. First, it communicates what the company does. The second meaning is more personal.

“Because I am a Christian, I wanted a back-meaning of Jesus rising up out of the grave,” he says.

Pacelli spent about a month mulling over possibilities, discussing sobriquets with friends and asking for snap reactions.

“Do a lot of informal market study,” he suggests. And, pick a name “that’s easy to enter into an Internet address. Something really long and complicated, you’re likely to have e-mails going to other people. That’s why I spelled Consetta with an ‘s’ – it’s more phonetically familiar.”

Think Broadly in Your Business-Name Research
If your startup plays to a global market, be sure its name doesn’t have negative connotations abroad. Also, take pains to avoid a name that can be turned into an embarrassment. Revert to your adolescence and think of all the possible variations. If the name can be mutated into something silly, gross or offensive, throw it out.

Don’t be too literal or descriptive; such names are limiting. Evocative names, on the other hand, convey business qualities you want to impart. A bread shop might evoke ideas of freshness and home-baked goodness. It would be time well-spent to make a list of adjectives that call such qualities to mind, then incorporate your favorite one or two in the name.
A business name should set you apart from the competition. And it’s not as simple as choosing one that begins with “A” to get top placement in a phone book or online directory. Just ask AAAA Dental Supply or AAAAAAA Pets ‘n’ Stuff. However you decide what’s in a name, be creative, fun and communicate success.

Lynne Meredith Schreiber is a freelance writer for StartupNation.