Lawrence Nicholson | What’s in a name? Plenty!

What’s in a name? That which we call a rose, by any other name would smell as sweet is said by Juliet in William Shakespeare’s Romeo and Juliet; a quote that is often repeated in discussions about the importance of names.

From my tangential relationship with literature in school, I recall the explanation for this quote being that the true qualities of a person remain the same, regardless of the name they are called. This did not sit well with me because the literature teacher seemed to have been giving students permission to call me names other than the one assigned by my parents.

It’s difficult to separate a person’s identity from their name. A person usually responds positively when identified by name and negatively when called by names deemed unsavoury. Extending this logic, the process of assigning names to family-owned businesses, FOBs, should not be seen as trivial, because not all names have a pleasant smell or taste.

In Jamaica and the English-speaking Caribbean, the most common name assigned to family-owned businesses is ‘surname and sons’, such as Smith and Sons, Azan and Sons and Stewart and Sons. A reasonable assumption from this is that these businesses are owned and operated by fathers and sons. But the data shows that this is not always the case. Does this matter? Does this constitute a misrepresentation of the family business? The question of what’s in a name lingers.

The literature on names assigned to businesses is clear. The value and goodwill of a business is inextricably linked to its name. The name is the first identifier: its brand and any missteps and misrepresentation can have both short and long-term negative effects on the business. Are there guidelines to follow in the naming of FOBs?

The general guidelines given in the naming of a family business include one that reflects the value system of the family, is not difficult to pronounce, is catchy, is not the same as any other or can be confused with another business, and captures the nature of the business, such as ‘Sweet Bread Delight’.

One could correctly conclude that these general guidelines are generic and skeletal because, by themselves, they do not tell the full story of the potential benefits and downsides of naming your family business. There is indeed more to naming a family-owned business, than to attach the family name to the business, or to have a catchy name.

VALUE-ADDED EXPERIENCE

While the principles of naming a business apply to both family and non-family businesses, the founder of the family business must remember that the name of the business is eternally linked to the family, and members of the family take the brand of the business where they go. This should be a pleasant and value-added experience.

In this regard, the founder must understand that a family business that is transitioned across generations is forever tied to the family, and care must be taken to avoid the name of the business becoming an albatross around the neck of the family.

For example, a family named business such as ‘Dick’s Small Store’ formed the bane of ridicule for the boys linked to this family, during their journey through primary and secondary schools. Although the constant ridicule might have brought attention to the store, and possibly led to increased sales, the outcome was that none of the boys wanted to be associated with the store, which effectively put an end to any thought of these boys taking over the business.

This example highlights the need to consider nuances of the context in the name given to a business. In other words, the referenced branding might have a positive effect in another jurisdiction, but not in Jamaica.

Regarding misrepresentation and branding of FOBs, there are cases in Jamaica where the designation of ‘surname and sons’ does not match the reality of the family structure – where, for instance, members of the family are father, mother and daughters. These businesses were named before the founder, the husband, had children.

There is one case in which the founder had four daughters and no son. In such a scenario, convincing any of the daughters to continue this business beyond the first generation is proving to be not only herculean, but downright abusive to the daughters.

While more empirical data is needed to be conclusive, there is anecdotal evidence that several of the FOBs with the designation of surname and sons ended up with larger families than intended – cases where the only son was the last of eight children.

What can be done when the assigned name is a misrepresentation of your family business? One solution to this is to change the name of the business. A change of name is more effective and has a greater impact when done before the name is established as a household brand.

There are cases of very successful FOBs changing their original names, having recognised that the original names were neither marketable nor a true reflection of the values of the family or the mission of the business.

There is a school of thought in the literature that the long-term goal of the founder should be taken into consideration when naming a family business.

If the long-term goal is for the business to extent across many generations, as a family business, then names such as Tate and Family Enterprise, Lee’s Supermarket, and Morgan’s Group of Companies are appropriate.

However, if the founder does not have a clear vision or is uncertain of the long-term goal of the business, especially with respect to the business staying in the founding family, then it might be wise to assign generic names.

FAMILY INVOLVEMENT

Generic names, without the family names attached, have proven to be effective for many FOBs. Interestingly, the data shows that many businesses which can be labelled FOBs did not start with this designation. Although many of these businesses were established with family involvement, there seemed to be little incentive or motivation to attach the family name to the business.

Alas, in many of these cases, not attaching the family name to the business is not always a bad thing. However, not attaching the family name to the business does not mean that the business is devoid of the principles and values of the family.

Successful Jamaican FOBs with generic names while having the principles and values embedded in their operations include Honey Bun (1982) Limited, Manpower & Maintenance Services, Island Grill, and Scoops Unlimited. Yes, there are others, but you get the point.

So, what’s in a name? Many things. The name of the family business is usually the first impression given to the customer. The name captures the brand, and the voice of the business.

While attaching the family name to the business can have a positive impact, in the short and long term, context-specific factors must be considered. However, there is no need to force the issue, generic names, without the family name attached, have also proven to be effective.

One should be guided by principles such as choosing a name that is reflective of the values of the family, represents the mission of the business, clear in its meaning, easy to pronounce, and has a potential for branding.

Lisa Gansk, an American entrepreneur, reminds us that “a brand is a voice and a product is a souvenir”. The name of the family-owned business should be a value-added brand that transcends generations.

More anon!

Lawrence Nicholson, PhD, is a senior lecturer at the Mona School of Business & Management, University of the West Indies, author of Understanding the Caribbean Enterprise: Insights from MSMEs and Family-Owned Businesses and a former director of the RJRGLEANER Communications Group.lawrence.n.08@gmail.com