Do company names actually matter?

September 12th, 2014

This is a bit of a trite thought, but: Can it be that company names actually matter? Consider some examples:

Some of my Google/Wikipedia-based "research" might be off. And I doubt that founding a company called "Huge Profits" would necessarily net me huge profits. However:

  1. The company name often reflects founders' vision.
  2. Such a¬†vision doesn't¬†change¬†easily, especially if a company is successful ‚Äď because success is convincing/addictive, and because an organization was by now built around that vision.
  3. Once the founders are gone, the vision becomes even harder to change because nobody has the authority and confidence. (Indeed one way in which organizations die, IMO, is through the continuous departure of people with authority that are not succeeded by anyone with comparable authority. Gradually, in more and more areas, things operate by inertia without adapting to changes.) Steve Jobs had to come back to Apple Computer to rename it to just "Apple".

So if you're the rare person capable of starting a successful company, and you insist on it being a huge success and not just a big one, make the vision as unconstrained as you can imagine.

P.S. For investment advice taking company names into account, I recommend Ian Lance Taylor's excellent essay titled Stock Prices.