What is a Niche Anyway?

If you conducted a study of terms that were most prevalent online over the short life of the Web, they would most likely fall into specific categories. In the early years, the term “shopping cart” would be front and center. Other words over the years would include, “banner advertising,” “pay per click,” “search engine optimization,” “analytics,” and, most recently, “social networking.”
Another one of these terms, which has continued its successful run for some time, is “niche.” What, exactly, does this mean for you?

The derivation of the word “niche” could be as early as the 14th century Italian “nicchia” or “niche” or “nook” from “nicchio” or “seashell” or the 15th century French “shallow recess in a wall,” or “recess for a dog kennel.” Other word experts say it may come from the Old French term “nicher” “to nestle, nest, build a nest.” The debate continues. The controversy also continues on its pronunciation of rhyming with “itch” or “each.” It’s one of those “eether” or “ither” arguments that no one will ever win.

Regardless of derivation or pronunciation, in economics a “niche” refers to a specific sector of the marketplace, which is distinct from the norm. Boutiques, for example, are often found in isolated areas that are away from the main shopping malls or downtown. Each of the boutiques has its own unique theme and set of buyers. Rather than a general clothing store where customers can buy everything from brand name shoes to scarves, the boutique will only sell jeans from one or two designers.

Niches: Survival of the Fittest

It’s human nature to gravitate to other people that share certain interests. Most likely, it is in the genetic structure somewhere for the whole purpose of survival. How long will an animal last when it joins other species? And if they are not eaten or ignored, they cannot reproduce anyway. So what’s this biology 101 have to do with an online business niche?

People who are either shopping or hunting for information online are also looking for that unique boutique or others who share their interests. That’s where they feel safe, comfortable, appreciated and content. In my book on How to Start 199 Online Businesses due out later this year at Atlantic Publishing, I talked with people who are really successful with not only a niche, but a niche of a niche. Forget having a store with a couple of designers’ jeans. What about one that only carries one designer’s jeans?

photo andercismo

Making Your E-Business Name Legal

When people open a new business for a brick-and-mortar store or offline service, they make very sure that the name is not trademarked by someone else.  If the name is available, then the business owner needs to trademark it, so no one else will take it. You will need to do the same with your online business.  A business name is very important, since that is how  your customers or clients will remember you. That is how you will build brand and how your clients and customers will tell others about your products or services.  Deciding on this name is almost as important as deciding what product or services you will offer.

You want to determine if anyone else is using the same name.  Too many Web site owners ignore this step.  In the best case scenario, customers will confuse your two sites and business will be lost. In the worst case scenario, you could be sued and have to change your name after your have your business established.

In addition, you will also want to protect your logo or any design that is associated with your business’ name.  Check with the United States Patent and Trademark Office or Trademark Electronic Search System database to see if anyone has your intended business name trademarked.   If the name of your business is close to another one, but not exactly the same, you could still have some problems.  You do not want to spend the time and money in a legal fight.  If the name is not taken, then you need to apply for a trademark to protect you in the future. Since your business will most likely be part of your domain name, it is necessary to check the trademark on this, too.

Remember:  1) names identifying  products or services to customers are considered to be   trademarks;  2) memorable trademarks are protected by law;  3) specific business and domain names normally are considered trademarks ; 4) whoever uses the trademark first owns it, in case of a legal question; 5) different trademarks  legally conflict with another if customers are unable to keep the two businesses separate.

When determining your domain, research as many trademarks as possible, look for potential conflicts and choose a name that will not cause a problem in the future.  You should also look for different spellings and synonyms of your possible business name. The U.S. Patent and Trademark Office provides all registered and pending trademarks.  Also search other business name registers, such as Thomas Register Online.

If you find any other names that are close to the one that you have chosen, make sure that the businesses are not carrying similar products or offering the same services.  Also make sure that customers cannot confuse the two names when looking for items.  Lastly, if the name of the other business is well known and branded, stay away from it. Do not try to be clever and play off this name. You could easily be sued.