I am wondering...

1) approx how much money is needed to set up a webhosting business?

2) what sort of equipment is required?

3) if owning a PC is absolutely necessary, or will an internet appliance do the job?

4) if owning a PC is absolutely necessary, is one computer enough or are multiple computers necessary for the success of the operation?

Thanks for any info.
Sabrina :-)

Hey,

At first glance there doesn't look like much to do, well, compared to some other types of business there isn't. Anyway, i'll go through your questions and hopefully give you some idea.

1) approx how much money is needed to set up a webhosting business?

This can hinge on a lot of things. How are you going to go about starting your business, will you incorporate? Becoming a LLC, or Incorporation can cost about $400~. Then you will also need a 3rd party or full merchant account, 3rd party usually only having a single set up fee, then a %age payments. Though a full merchant account, with your company name as showing up as the person billing and with cheaper discount rates, can go at about $25-$40 monthly and a set-up fee from $0-$300 usually. Then you have to ask yourself the next question, do you want to start as a reseller, or jump straight in, on a dedicated server? Reseller is usually the choice of most new hosts, it's cheaper to start off, there is less risk, and you kind of 'dip your feet in before you jump right in.' Though this doesn't mean you can get slack with support :D Another thing, are you going to have a support phone number? There will be costs for having that operating, and if you have an 800#, there are costs per minute. Then the other general costs, are your internet connection, PC etc..

2) what sort of equipment is required?

A computer. :) Unless you're going to buy a dedicated server, then, you'll also have a dedicated server.

3) if owning a PC is absolutely necessary, or will an internet appliance do the job?

Umm, I think you should have a PC. I reccomend you offer technical support, kinda standard now, unless you're a totally bottom dollar host that can't afford to spend time on support.

f owning a PC is absolutely necessary, is one computer enough or are multiple computers necessary for the success of the operation?

One computer should do, unless you have more people working with you. This isn't counting your server though hehe.

Hope i've been a bit helpful. Make sure you think every aspect over before you make a large decision, and promise me if you do start a business, don't be unlimited. Good luck!

Originally posted by NetXL
Hey,

At first glance there doesn't look like much to do, well, compared to some other types of business there isn't.

Unfortunately, this is why alot of hosting companies get into trouble. Some people think that running a hosting company is just a matter of getting a dedicated server and then start taking people's money and setting up their accounts.

WRONG!!!!!!!!!!!

If you want to run a successful hosting company, you need to treat it JUST LIKE ANY OTHER BUSINESS!!! I've owned a retail sales store, with an actual physical location, and it's just as much work running a hosting company...if not more.

You need a solid business plan - so that you know how much you can offer your hosting packages for...and still make ends meet and pay your bills in the LONG RUN. This is absolutely imperative. Do NOT be fooled into thinking that you can rake in all the money when you first get started...because the money is VERY good, at first - but you have to take GROWTH into consideration. If you don't...you (and your customers) are screwed.

Also, figure - taxes, attorneys fees, equipment, employees (no, you can't do it all on your own forever...or with a "friend" who is going to do half the work), merchant account, PO Box or physical location, filing fees for getting your business paperwork in order, accounting, support, support and SUPPORT fees....and alot more.

Good luck!

--Tina

What she said. :stickout

Heh, nah, I just got to the main costing part of the business. Tina is right in saying you need a business plan though, and that you need to really do your research and find effective plans. If you get a dedicated server, work out how many clients you need to pay the server off and make sure it's realistic, something like 30-40 is an average number at $10~ monthly. So it'd probably best to resell until you get to this number so that there is no pressure and you can focus more on the 'getting customers' part. I didn't really mention what happens when you're all set up, like Tina mentioned. Advertising is very important, that can be a huge cost depending where you advertise and how much. $250 - huge amounts. Lastly, when I said there isn't as much to do, well, you got me there, but I think my thought was on the physical side of setting up a business, and having to order in things, set up shop etc. Whereas this is all e-based, focussing more on the marketing aspect, and taxes, lots of taxes.....

Yeah, LOTS of taxes. Where we are - we pay 28% in taxes. :eek:


--Tina

Originally posted by AffordableHost
we pay 28% in taxes.
:crap: :smash:

Woah!

28% tax. Gotta be hell.. :angry:

Thanks all for your replies! I was hoping to get an overview of everything...you all helped do just that. Thanks again! :D