Advice on choosing a name for an accounting firm

Info User - Sunday, April 11, 2010 - Comments (0) | Trackbacks (0) | Permalink

Over lunch today I was reading some news via Feedly in my web browser, when I came across this blog topic on AccountingWeb.co.uk:

I am about to set up my practice and am in two minds as to whether to use my own name eg Fred Smith Accountants or be a bit more creative. I have no ambitions to grow a huge practice just a small office with 2 or 3 staff eventually providing traditional accounting and taxation services to small local businesses. At the same time I dont want to be seen as an old fashioned.

The answer to this question all depends on your overall business plan, eventual exit/succession strategy, and how you intend to position your firm within your market.

From the perspective of creating value on your balance sheet (as one day, you will sell your business, unless you have discovered the fountain of eternal youth), in my opinion go with something for which you can register a trademark (as that obviously becomes a balance sheet asset, albeit an intangible asset, for the firm).

I personally lean towards the use of brand names, but not ‘tacky’ ones (the ‘R US’ example was, I hope, clearly made in jest!). However … do ensure you include the descriptive words (accountant/accountants/accountancy/business advisors) in the business name, or at least in the tag line that follows every instance of the firm name.

A surname is ok to use, but I personally would avoid the use of your first name, unless you want to position yourself as a tiny ‘micro’ firm. Using your first name and last name in your firm name can end up being a noose around your neck, in that it can tend to set up an expectation for new clients that they will be dealing directly with you, “Fred”. (Plus it can lead to the future owner wanting to change the name, after your exit. What a waste of building up the brand name value over the years!)

Clearly there are plenty of examples of successful accounting and consulting firms that have the founder’s last name as the brand name, and there’s nothing wrong with that. At the end of the day though, don’t spend too much time or energy on the decision regarding the name, as it’s not a make or break decision for the future success of your firm. Your brand/firm name will come to have associated with it those qualities that your clients experience and value, and therefore tell others about — that is, your firm’s eventual reputation.

If your surname is already in use within your market by established firms, then you won’t succeed in getting a trade mark registered. In that case, you might need to consider a ‘brand name’ for your firm. It is crucial, in my opinion (as was suggested above by Adrian) to get your logo professionally designed. The ‘homemade/DIY’ logos (some look they are done by the work experience kid or a son or daughter still at school!) send a message of amateur/cheap/dodgy. If your logo design is distinctive enough, you can get a registered trademark for the ‘MARK’ (graphic), if you don’t (also) succeed in getting a registered ‘WORD’ trademark.

So do speak with a trade mark attorney and have a search on which of the name on your shortlist would be available to register (and in parallel, see what domain names are available, but the trademark is more important from an IP value perspective — you can always do a slight variation on the domain name such as adding a word at the start or end of it); and do use a professional graphic designer to have your logo designed. (By the way, the graphic designer I use is excellent and tremendous value for money — see our firm’s site at practiceparadox.com.au — I can refer you on to her if you drop me a line.) Hope that helps. Feel to log into our free webinars each month that are about marketing for accounting firms. Cheers, MC