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View Full Version : Possible Hosting Business for sale


stftk
03-14-2004, 02:12 PM
Hello,

It is a possibility we may sell our business within a month or so. I am trying to see what you guys think the business is worth, and if I get a nice offer I would probably sell.

Here is a little bit about the business:

- Has a professionally designed custom site ( www.dynamohosting.net )
- Has a dedicated server for $190/month
- Uses modernbill billing system for $24.95/month
- Has a SSL certificate on the domain dynamohosting
- Has a 1 server license for the Elink Blue cpanel skin ( www.dynamohosting.net/cpanel : user - democp , pass - demo )

I think since the site itself is worth a lot and that the customers are settled in on the server, it would be best for a business to take over this in its name, possibly either keeping the server or keeping site and server and changing the name.

Server details:
- $190/month
- Main hard drive only 18% full!
- Has been secured and tweaked and constantly updated
- AMD 2400+ processor
- 1GB Ram
- dual 80GB hdd's
- 750GB bandwidth
- Remote Reboot Port
- Hosts 208 accounts total

Right now we have 90 active clients. I bill each monthly client on the 1st of every month. Usually the income is about $500-600 per month, but it fluctuates. Since starting in late May of 2003, the total money brought in through hosting services is $6633.37 . I believe you could bring this up to $10,000 a year with just a little bit more work.

Most of our clients are monthly as you can probably tell by the usual $500-600 a month from invoices. Our clients are very happy with our service/support so as long as you provided good service/support they would not leave.

Like I said I am looking for general ideas of what this business is worth including everything (site, clients, services). If you want more details please PM me. If I get a nice offer I am willing to sell.

Thanks,
Dan D.

Niftex
03-14-2004, 02:27 PM
Are you willing to just sell customers ?

Thank you

stftk
03-14-2004, 02:29 PM
Well if I did that I would have a site and such left over, so I think I'm looking to sell it all.

Niftex
03-14-2004, 02:35 PM
Do you have aim or msn ?

Thanks

stftk
03-14-2004, 02:36 PM
AIM - dynamosupport
MSN - sales@dynamohosting.net

Thanks,
Dan D.

RobTheGolfer
03-14-2004, 03:59 PM
I would make an offer on the clients only.

AH-Tina
03-14-2004, 05:45 PM
I would offer $3000 for everything - knowing that I would drop the server and move all the clients to a server in our datacenter.

--Tina

RobTheGolfer
03-14-2004, 06:12 PM
I would offer $3300 for everything. :)

ICALIV
03-14-2004, 06:15 PM
I would have offered about the same, but $2/month plans not for me. Good luck.

AH-Tina
03-14-2004, 06:18 PM
I don't see $2 a month plans. The cheapest I saw was $5.95. What'd I miss?

LiveTronix
03-14-2004, 06:50 PM
The personal plan.

3gigs B/W 2.99 a month

sonow
03-14-2004, 07:15 PM
Im offering $4000

AH-Tina
03-14-2004, 07:25 PM
I'm bowing out then.

liquidfire
03-14-2004, 07:33 PM
I am willing to negotiate a price. I am willing to offer up to $5000 to buy and brand it with the LFNS name or $5500 otherwise.

However, I would like to know some basics about the company first.

When was the company founded? When was it officially registered as a business and where? What are you average total expenses per month? What can you tell me about the history of your company? Have you had any major outages in the past? That sort of thing.

Most importantly: Why are you selling?

If you're not comfortable answering in this thread, that is fine. You can contact me at petermdodge@canada.com

stftk
03-14-2004, 07:46 PM
Thank you all for your offers. I will answer liquidfire's questions here:

It was originally founded as dynamodesign.net in Janauary 2003. It was registered in Michigan. That site wasnt for hosting, more of a portfolio for design.

In May of 2003 we decided to start hosting. We registered the domain dynamohosting.net.

The expenses are only 214.95 a month (plus any domains, etc.) . This is a $190 a month fee for the server and a $24.95 fee for our billing system, modernbill.

Basically we started out as just a design related site, and in 2003 moved to hosting. We have had 1 major outage and 1 minor outage. The major one happened when we were with a dedicated server provider decided to move the servers without warning us, causing downtime of about 18 hours while servers were moved. The minor one, with our current provider, lasted 3 hours and was a time while the server was not down, but only got a network speed of about 5KBps.

As far as why I'm selling it - hosting is one of those things that while you are a small host, you need to put a very large time into it. I love working with servers and doing administration. I am hoping that once I sell the hosting business I will be able to go into server administration.

Let me know if you have any other questions.

Thanks,
Dan D.

AH-Tina
03-14-2004, 07:49 PM
Where, in Michigan are you located? Also, is this a registered business, in Michigan?

We're in Michigan. My interest just jumped up again. ;)

stftk
03-14-2004, 07:51 PM
The business is registered in Wayne County.

Thanks,
Dan D.

stftk
03-14-2004, 08:56 PM
I made this kind of sketchy in my original post, but let me clear it up.

$6633.37 is the amount of money brought in since May 2003, which is not a full year.

Modernbill predicts that at our current rate of sales, the yearly income would be about $8900.

Thanks,
Dan D.

liquidfire
03-14-2004, 09:10 PM
So, would you want to remain involved in the company, just not in a management role?

(That's not a problem, we could use a good server tech :) )

stftk
03-14-2004, 09:25 PM
Thank you all for your interest and time, I have a top bid and we are working on something. I will decide within a day or so about the decision to sell. I wont need any more offers.

Thanks,
Dan D.

cscertified
03-16-2004, 03:40 PM
Keep us posted. I am very interested but I will wait to see how things unfold!