The Principles of Successful Freelancing

If you do decide to use a created name, start by creating a shortlist of options, and then create a spreadsheet. Populate the first column by doing a WHOIS search and finding which domain names are still available (both geographic and top-level).

Then, fire up your favorite search engine and search for those business names. What are the results? You wouldn’t be the first start-up to make it this far, only to find another product or business using the same name. It’s better to do this research now, rather than when the business cards have been printed ... Try predictable misspellings of the words, too—often a business name may be only one letter different from another, so make sure you check first!

Thirdly, consult your local trademark database and see if there are any trademarks of which you need to be aware. Even very similar words may be worth avoiding.

You should also speak to some friends and colleagues. Ask them what they think of each name in your refined shortlist, and narrow this list down even further. It’s better to do this face to face to observe an immediate reaction, rather than by email or phone, where they may have a longer time to consider it—you want their gut response.

Finally, go with your instinct. After all, it’s your creation, and you have to like it. If, after hours and hours of soul-searching, you just aren’t happy with your choice, try again or consider using your own name.

Example 2. Bam Creative
When considering my own business name, I had a multitude of options. I liked the idea of incorporating my name in the business identity; however, I did want to leave my options open in case I ever hired staff.

Although my name (Miles Burke) is fairly unusual, the domain name milesburke.com was taken at the time, and I didn’t want to tie it in so closely to me in any case.

My initials are MB or MAB in full, and I didn’t believe these really stood out. However, when you reverse them, you end up with BAM, which I felt suggested impact. I knew that Bam was a very popular word, though, so I assumed there was no chance of getting those domains using it by itself.

Although most of my work at the time was web site design and development, I was occasionally brought in on corporate identity design or consulting projects. I’d already decided that I planned to stick to creative work, so I ended up choosing the business name Bam Creative.

This allows my business to work on anything from web sites to logos and anything else that can be broadly considered creative, and still be true to the name. The word Bam is generic enough for most people never to make the connection that it’s someone’s initials, and certainly not the reverse of someone’s initials!

Funnily enough, I did manage to register the domain bam.com.au, but I had no chance of getting any top-level domains (.com, .net or .org). Luckily, I got the full bamcreative business name versions of these.

Considering Your Business Structure

When setting yourself up as a business, you should consider the implications of different business structures. If you intend to take on staff within the first few years, you may wish to set up a corporation. If you plan to remain a solo worker, having everything set up as a sole proprietorship may be the best solution.

Having said this, consider speaking to an accountant and possibly a lawyer to seek advice about your particular scenario. You could also speak to local business bureaux (such as SCORE) or associations. They’ll take into account your current personal and financial situation, as well as your legal jurisdiction. Requirements for different business and company registrations will vary depending upon your location.

Each different structure can have a considerable impact on your taxation benefits, your licensing and governmental costs, and your ability to grow the business in the future.

The main differences between a limited liability company (an LLC) and a sole proprietor arrangement reside in the varying levels of possible taxation benefits, legal protection, ability to obtain finance, and your legal requirements.

Setting up an LLC structure has both advantages and disadvantages. The advantages include:

• greater legal protection—If a client sues the company, only company assets can be seized to pay any judgement, not your own car or house.
• greater ability to obtain credit—Many financial institutions and lenders have a preference for a company, rather than an individual, for business finance.
• tax benefits—In some states and locations, a company receives more taxation benefits than a person.

This option isn’t entirely free of disadvantages, of course. An LLC costs money to set up, and there are ongoing company-related fees. Also, financial reporting is usually more involved than for an individual.

Being in a sole proprietor structure has its fair share of benefits, mostly to do with cost. When compared with an LLC, there’s less financial reporting for most situations, fewer start-up administration costs, and not as many licensing or business costs.

There are disadvantages though, which are easily recognizable as the other side of the LLC advantages:

• zero legal protection—If a client should sue you, the court can order that your assets be taken to pay any legal judgment.
• less access to credit—Business loans are likely to be harder to get for a sole proprietor than for an LLC.
• tax burdens—You may be taxed more than if you were a company.

Ideally, whatever structure you create now will mean that you aren’t paying more than you need to in fees and costs, yet allow you to be flexible enough to accommodate change as your business and your direction evolve.