Adding These 3 Letters to Your Business Name Could Increase Sales 30%
Templar Legion conducted a survey of Internet users* to study consumer behavior when presented with a choice between a business operating as a sole proprietor and a business that is incorporated or formed as a limited liability company. The results show that prospective customers prefer to see “Inc.” or “LLC” in the name of a business – of the 200 people surveyed, 113 said they would select the corporate entity over a non-corporate entity, with all other things equal.
One respondent’s comment was representative of the group that selected the corporate entity:
“I would choose the company that had taken the time to incorporate their business. It just seems more professional to me. The owner has taken the time and made the effort to take their business seriously enough to incorporate, which gives them better legal options and better tax rates, among other things. It tells me they hope to be around for a while.”
Here is a break-down of one of the surveys:
The only difference between the winning and losing options is the “Inc.” at the end of the name! These results imply that if two similarly named firms (one incorporated and one not) were seen at the same time by a consumer making a buying decision, the corporation would be chosen 44% more often than the sole proprietor.
An insightful comment from one of the respondents who chose Option B was: “Perhaps there would be less of a wait.”
If you are one of the 22,614,000 businesses still operating as a sole proprietor**, the action item should be clear.
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* Survey conducted May 14 – 16, 2012.
** Source: U.S. Census Bureau, Statistical Abstract of the United States: 2012