Hello,

Here is the deal. I'm planning on getting out of web hosting business because I received a great job offer in a different state.

What I'm trying to figure out is how much my company worth in real numbers.

Currently I have 70 clients, hosting 120 domains on one server.

Server Cost: ~$250/mo. PIII 750mhz 256mb 133mhz ram, 100gigs of bandwidth.

The numbers:

Monthly: 19 clients ~$300
Quaterly: 39 clients ~$920
Annualy: 4 clients ~$330

Total Annual income: ~$7610
Total Annual server cost: ~$3000

It comes out to be around $5,000 profit.


About the company.

The company is operating since September, 2001, within the first month it already went profitable. We do not have any known problems, everything runs very smooth, and we are growing at a steady rate. We have and will also include a full very professional web site, which contains all information about the company, support manuals etc.

I would say the server is 30%-40% full, looking at how easy it handles current accounts.

Basically what comes with my offer, is a fully built company:

1. Full professional web site and a really nice domain.
2. Already setup server with paid setup fees, and few upgrades that were made. The server already pays for itself.
3. PaySystems mechant account, all you have to do is change the ownership, and you will already have money coming in without any hassle - could be a great temp. solution if you have your own merchant account.

I have worked very hard to build this company, and it got to the point where it is about to start growing large and fast. I would love to continue building it, but I have to move to my new job.

I have included most of the info here, and I'm just looking for *possible* numbers of how much I could get or minimun to sell for.

I appreciate any help.

Thank You.

Maybe you should include the domain name where this hosting company is located also where are the servers located at in what data center.

I hope you don't consider my comments too off topic but:

Firstly I wanted to say that those numbers seem fairly impressive - given that you've only been operating 4 months - you've done well. :)

And secondly - it seems that you didn't really figure labour or related costs into your calculations. I guess because you've done all the work yourself, or the like. But I think it would be fair to expect at least $1000 or 2 for 'annual' wages/support?

You also didn't really mention if the server, or any of your operations are locked into contracts of any kind.

Originally posted by TimPD
Maybe you should include the domain name where this hosting company is located also where are the servers located at in what data center.

He probably wants to keep the domain name private to all bar the buyer, as per normal procedure.

Total Annual income: ~$7610
Total Annual server cost: ~$3000

It comes out to be around $5,000 profit.

Does it :confused:

Well i think it's around 4 and a half thousand but that's near 5 thousand right? I mean if you round it off..... :D

Thanks, I was doing the math wrong. I figured the business ought have some expenses (tech support, utilities, accounting, tax filing, supplies ......). So, when I take that in to account I did not see how it was a "profit" of $5,000. Guess it's the difference between our math.

Hello,

Yes, I am the only person running the show, and I'm the only one working with support. I have experience to admin my server, and I stive to keep my customers happy.

I cannot provide you with the domain - I would like to keep this sale private.

Reason I rounded it off to $5k is because the company still gets new customers, and it will most likely go over before the sale is made.

I'm still thinking on maybe leaving the company, and see how far I could grow, while out-sourcing support.


Thanks for adding 2 cents folks.

Don't get me wrong. I think you are doing/done well, it is a very good start. Though one could continue to manage it alone, if someone wants to continue adding more customers and grow then there are additional expenses involved.

Hello,

Yes, you are absolutely correct. But as of now, my only expenses are the server and mechant fees. Of course as it grows I will be adding new larger server, and pay for support. But this happens with any company, expenses will be higher as the company grows.

Thanks.