When entrepreneurs start a business, they often grapple with whether to use their name in their company’s name. It’s one of the most important and visible decisions they may make; it also seems a highly subjective one. So, should you do it? According to two recent research papers, the right answer may be: It depends.
Should You Name Your Company After Yourself?
When entrepreneurs start a business, they often grapple with whether or not to use their name in their company’s name. Before you found Jane Smith, Inc., consider what the research says. One recent paper found a positive correlation between eponymous firms and financial performance; those researchers theorized that eponymy increases the benefit or risk to the founder’s reputation, making her more driven to succeed. The second paper (using a different dataset and different methods) found a negative correlation, and hypothesized that founders who name their firms after themselves might not be as objective when it comes to maximizing value. If you’re thinking about naming your company after yourself, weigh these findings, think about your customers and competitors, and think about the long-term effect on you and your company. And remember, as with all brand naming decisions, it matters less which name an entrepreneur chooses and more the actions she takes to make it mean something that’s relevant and compelling.