Hi,

It's not really a business plan, more of a course of action.
Areas where I would upgrade in future, once I am bigger, I put in parentheses ().

--DESCRIPTION--
Websites:

Basicially two websites, one offering webdesign the other offering web hosting: (fictious names)

1. examplehosting.com:
- virtual web hosting
- domain registration
- link to examplewebdesign.com

2.examplewebdesign.com:
- web design, e-commerce etc.
- domain registration
- link to examplehosting.com

-- LEGAL --

Business Type:
Sole Propriertorship
(->upgrade to LLC)

Business License:
Get from local state agency.(in USA)

DBA -- "Doing Business As":
Get two for the two websites from County Clerk.
(->upgrade Trademark business names)

Taxes/Accounting:
Keep seperate accounts, one personal one business. (->upgrade get accounting software or hire accountant)

Insurance:?
(->upgrade buy insurance or hire an attorney)

-- OPERATIONS --

Webhosting:
Reseller package, splashhost, voxtreme, mchost.?
(->upgrade to dedicated server transXact.com, rackshack.net)

CC Processing:
2checkout.com
(->upgrade echo.inc)

SSL certificate:
included with 2checkout.
(->upgrade thawte)

User Account Management:
Use control panel application from web host.
(->upgrade modernbill.com)

Domain Registrar:
Dotster.com Reseller Package
(-> upgrade enom)

-- OTHER --

Marketing:
Search Engines, Message Boards, Small Ads, web design customers.
(->upgrade banner ads, mass media advertising?)

Customer Service:
Email
(->upgrade 1-800 number)

I'm trying to start off small, so am going the cheapo route. If any of you have any suggestions or areas where you would use a different company or do it differently, I would love hear it. One area I'm still a little confused about is how authorize.net, ssl certificates, modernbill and online merchants all tie together, but I won't have to think about that for a while ;)

Thanks. :)

If you want to do it whatsoever, then invest some time in writing a basic plan for yourself that incorporates all those ideas and outlines all your costs.

CHeck out www.bplans.com which have some sample plans there, and begin what you want on the right foot from the outset, and then build an action plan for yourself with time and cost requirements.

I have no experience running a web hosting company, but in regards to the company structure - I would recommend a LLC from the start. It's not so expensive to set up - you can do it cheap over the net (close to free) - or paying an attorney to set it up will cost about $600. Going the attorney route is the best bet.

The main reason to use an LLC rather than a soleP is that with a soleP you can be personally liable for damages if sued. With an LLC only the assets of the company are liable.

The reason why my input is to go with the LLC right from the start is that as you get going & take on clients - converting to a LLC may get pushed off & ignored for a while - better to have the right protection from the start, but this is only my opinion.

Taxes/Accounting - Definately keep the accounts away from your checking account. Set up a small business account at the local bank - it's very easy to do. You can use quickbooks etc to track you business P&L - and you'll only need a few hours of an accountant at certain times of the year.

Worth to find a good accountant & attorney before you start. It's free to check them out - ask other small businesses who they use.

hope this helps

hi NovaW,

LLC instead of soleP?
I thought of that, but I though the costs were to high to do that? You said "...cheap, close to free on the web...", do you have a place you recommend? One more thing about LLC, what are the downsides of being an LLC as opposed to a SoleP? My business will be a "one-man" operation unless I get really big and even the I will be reluctant to hire someone.

From http://www.mycorporation.com/incllcbusiness.htm
Two members required: Unlike a corporation which can have as few as one shareholder, most states require that an LLC consist of two or more members (owners). Recently, however, more states are allowing single-member LLCs. Please note, however, that the IRS may treat a single person LLC differently than an LLC with more than one member.

I understand that under a SoleP you have unlimited liability, but aren't you making a few assumptions aswell? For you to be liable, I would 1.) have to do something wrong, illegal 2.) lose in a court of law. Right?;)

That and the fact that it's a one man show are the main reasons I chose SoleP. (Although LLC looks a lot more professional.)

Your post has helped me a lot,
thanks ;)
ciao :D