Naming a business is like laying the cornerstone of a building. Once it's in place, the entire foundation and structure is aligned to that original stone. If it's off, the rest of the building is off, and the misalignment becomes amplified. So if you have that gnawing sense that choosing a name for your new business is vitally important - you're right. With 18 years in the naming and branding business, I've witnessed the good, the bad, and the really bad. Here's how you can avoid the worst of the mistakes and get off to a good start.

Mistake 1: The Committee (Getting all your clients, employees and family members involved)

We live in a democratic society and it seems like the right thing to do - involving everyone in an important decision. This approach, however, presents a few problems. The first and most obvious fact is that you will end up choosing only one name - so you risk alienating the very people you are trying to involve. Second, you often end up with a consensus decision, resulting in a very safe and very vanilla name. A better method is to involve only the key decision makers, the fewer the better, and select only the people you feel have the company's best interests at heart. The need for personal recognition can skew results - so you are best served by those who can park their egos at the door. Also, make sure you have some right brain types in the mix. Too many left brains and the name often ends up too literal and descriptive.

Mistake 2: The Train Wreck (Taking two words and colliding them head on)

When forced to come up with a creative name, many aspiring entrepreneurs will simply take part of an adjective and weld it onto a noun. The results are names that have a certain twisted rationale to them, but look and sound awful. Someone starting a high-end service franchise then becomes QualiServe. It's a bit like mixing chocolate syrup with ketchup - nothing wrong with either, but they just don't go together. Other common truncations include Ameri, Tech, Corp, Tron, etc. The problem with this approach is that it's simply forced � and it sounds that way.

Mistake 3: Where's Waldo? (Names so plain they'll never stand out in a crowd)

The first company in a category can get away with this one. Hence, you have General Motors, General Electric, etc. But once you have competition, it requires differentiation. Imagine if Yahoo! had come out as GeneralInternetDirectory.com? It would be much more descriptive, but hardly memorable. And with the onslaught of new media and advertising channels, it's more important than ever to carve out your niche by displaying your uniqueness. Nothing does that better than a well-conceived name.

Mistake 4: The Atlas Approach (Using a map to name your company)

In the zeal to start a new company, many businesses choose to use their city, state or region as part of their name. While this may actually help in the beginning, it often becomes a hindrance as a company grows. One client came to me with complaints he was serving more of the market than his name implied. He had aptly called it St. Pete Plumbing since he hailed from St. Petersburg, Florida. But yellow page shoppers assumed that was also his entire service area. With a little creative tinkering we changed the image of St. Pete from a city to the image of St. Pete himself, complete with wings and a plumber's wrench. The new tag line? "We work miracles!"

Other companies have struggled with the same issue. Minnesota Manufacturing and Mining was growing beyond their industry and their state. To avoid limiting their growth they became 3M, a company now known for innovation. Kentucky Fried Chicken is now KFC, de-emphasizing the regional nature of the original name. Both of these companies made strategic moves to avoid stifling their growth. Learn from them and you can avoid this potential bottleneck.

Mistake 5: Cliche' You Say? (A good name is worth a thousand words)

Once past the literal, descriptive stage, the thought process usually turns to metaphors. These can be great if they are not overly used to the point of trite. Since many companies think of themselves as the top in their industry, the world is full of names like Summit, Apex, Pinnacle, Peak, etc. While there is nothing inherently wrong with these names, they are just overworked. Look for combinations of positive words and metaphors and you will be much better served. A good example is the Fortune 1000 data storage company Iron Mountain, which conveys strength and security without sounding commonplace.