When starting a new business, a common mistake is failing to notice the long-term effect of attaching a name to your business. Instead, first-time business owners are concerned with important issues like cash flow, inventory, staff, leases and signage. Owners tend to think the company’s name will fall into place and in the rush of start up, it’s easy to overlook.

But the wrong name attached to your business can be bad for business, whether it’s right out of the gate or down the line. Before hanging your shingle, be sure you’ve thought out the name and take caution to avoid these five possible naming hazards.

1. A Literal or Descriptive Name

Don’t make one of the most common mistakes in naming your business — using a wordy or literal name for your company. People do this when they fear customers will not understand what you stand for unless it’s literally spelled out in the business name. This is perhaps the most common mistake of all. The thinking is that the customer won’t understand the business unless it’s described in literal terms. This can lead to a variety of short and long term troubles, like leaving customers wondering what exactly your business offers, not to mention seeming ordinary and common.

2. A Company Name Based on a Product/Service

Businesses develop and change to meet their customers needs, which means a beginning business can inevitably alter. If a product is the heart of a business name, that can lead to problems down the line. For instance, CompUSA made their name around one specific product line, and then had to dispel the idea that they only sell computers. It’s more prudent to have a quality-based name, like Target or Best Buy.

3. Allowing a Map to Control Your Company’s Future Direction

When stuck for a name, many businesses will fall back on the geographic route when choosing a name. This is a bad decision, as it gives no insight into why a customer would want to visit your business other than the reason that you’re near a certain area. Experts agree that if location is the sole reason you chose the name, you should probably step back and take another look at your business model.

4. A Meaningless Acronym to Spell Out Your Business

Companies will do this in an attempt to shorten a wordy name or to incorporate a family name into the business.

Acronyms sound awkward and require an explanation of your business name and eventually, an explanation as to what your company offers. Acronyms are also difficult in search engine rankings — the competition is steep and you’ll fall behind.

5. Banking on Your Last Name as Your First Choice

Using a surname may appear reasonable, but this plan can also backfire. Last names are meaningless to most unless you have a brand that is nationally know, such as Johnson or Hilton. Stay away from this pitfall. Last names give little aid in telling one company from another, and although you may not be thinking about selling when you startup, if you ever do want to sell, no one will want to take over a company with someone else’s name attached to it. Pick a business name that showcases what you do and speaks to your abilities as a company.