Alright here's my situation. I've been pondering whether to starting a hosting business over the past few days and am now seriously considering it. I do not know much at all about server management and how to run a hosting company and I do not yet have the money to invest into the company. Given that, would this be a good/smart way to go about starting my hosting company.


First off, I need to learn a great deal about hosting and how to run a hosting company. I figure browsing WHT and other sites as well as a book or two could prepare me adequately for running a hosting business, correct?

Secondly, I need the assets to run the company. At the moment, I have almost no clue what I would be doing, but I'm going to take a guess.. Would the smart thing to do be to a) Buy my own server from Dell and co-locate it somewhere (I would think that I wouldn end up lowering running costs if I own the machine as I plan on running this business for a good while.) or b) rent a server from a datacenter and pay their monthly fee.

I know I would probably want to rent one first to get the hang of managing a server before I buy one, but I don't plan on starting this business anytime soon(atleast until I know what I am doing) so by the time I do start I think I'll know what I am doing.

I would basically like to know if I am right or wrong, and if anyone could tell me a smart way to start a hosting company.

Excuse me for the poor organization, I'm basically just writing things down and they come into my head :rolleyes:.

Thanks

EDIT: also, what kind of software will I need(cPanel, plesk, WHM, etc.) and what is a good way to go about billing(paypal, 2CO?, etc.)?

EDIT again hehe: this may be a really stupid question, but could I run a hosting company using an Apple XServe? I would have to use Mac OS X server though and couldn't use linux though if i were to do that, right? I thought the extra 500 or so for Mac OS X server was stupid but I saw on Dells site that they were charging for linux installs? What's the deal with this? Sorry for the stupid question, I just had to ask though because I'm kind of an Apple fanboy..

I would strongly recommend looking into a reseller account. There are lots of companies on WHT that offer reseller hosting.

Yes i agree, dont jump in at the deep end, as fun as that can be :P

Test the water first with a cheap reseller account, this will give you the basics on managing websites. You can then move onto a VPS and get some root access experience and full WHM rights.

I would recommend using Linux servers for web hosting. Alternative being windows i would only used if you require, .asp, .net or MSSQL.

Before you start your company i would recommend looking into some competitors. The hosting industry is huge and you need to draw up a plan on how you intend to beat some of the smaller rivals. This will in-turn get you up the ladder slowly.

Don't let this put you off, just some advice.

Regards

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The smart way its to find a day job and don't waste your time on hosting. This market is already heavily overcrowded and here is no space for beginners. You just going to waste few month or years of your life without any outcome - be smart and find a real job.

I say GO for it...definitely start small...I think most "larger" hosts started as resellers.

I did before I ever got my first dedicated...it suddenly made "sense" financially and control wise.

To this day I still have more windows servers than linux..but thats a different thread :p

if you need some reseller hosting to get you started...I can help, get in touch.

Also, a written plan (even just in outline form) makes a big difference in any business

I would definitely suggest you do that.

Consider your budget (what it will cost to run this in all phases) and time you have to dedicate to this.

marketing, support, growth strategy etc

Hosting is NOT crowded...its just crowded in certain areas. Find your niche and excel

my average customer still pays 20-60/month for a basic shared hosting package (one domain)

There is always someone in need of a host. Its just a matter of getting there first and ensuring that you can provide what they need. Get yourself established locally.

Do you do web design? Help some local businesses get online and thats already custom.

I've been pondering whether to starting a hosting business over the past few days

You made the decision in just a few days?

I do not know much at all about server management and how to run a hosting company and I do not yet have the money to invest into the company.

Considering those two statements, why do you want to start a hosting company?

To start a new business, you need a lot of money, even if you cut on costs and use a reseller account. You basically need to invest into quality service, support, and most of your budget will go to advertising to build your brand, which is the most critical.

Curious, what made you decide to start a hosting business? You've said you don't know much about server management, how to run a hosting business, or the software/skills needed for it. What made you decide then?

I want to be a rock star, but that doesn't mean it would be a good career move. :)

Don't want to discourage, but spend more than a few days on it.

I don't understand the OP. You acknowlege you do not know much about hosting or managing servers - why on God's earth would you want to start a company in this market then? What value-add would you offer your clients? Is it fair for your clients to be with a company that has little-to-no experience?

I don't mean to come off as rude, but this is business, serious business, you are talking about here. I am curious why you have decided to look into this venture..

I do not know much at all about server management and how to run a hosting company and I do not yet have the money to invest into the company. Given that, would this be a good/smart way to go about starting my hosting company.


No. Given that you acknowledge you dont have the skillset, dont understand the business and dont have the investment, it would be a disaster for you to start a "host".

I would advise to start learning really hard, only then you could organize your thoughts, take a look on your local market, get some statistic data, prepare, calculate how mcuh will cost you website and seo+ ads, think what marketing tools you will use, what market serve and what service provide. You can`t just decide and create hosting company, it may take about 6 months of preparations if you wanna create a solid web hosting proider, moreover if you know nothing about hosting how are you going provide techsupport or will you hire someone for this? what control panel to use? what CRM systems? billing credit card processing, company incorporation, rather to say GOOD LUCK

Hi Stackd

I usually give the same advice to anyone in your situation. Do not spend big money anywhere to build a business when you do not have experience. Get a cheap reseller account, help any other host doing support, get one or two customers and learn from the experience. Give to it 6 months or 1 year. And if after that time you still think hosting is good for you, plan for real.

Q

I've started before and went dry after a few months... That's because i never made a business plan and a target market. A clear path to failure i assure you.

So i learned and made everything beforehand. Worked up the business plan, planned the target market and developed my social network. Then kept quiet (since hosting companies in my country are like sharks, where when they realize your there your efforts to market will literally double up).

Now, I am still keeping my day job in an IT company and fortunately for me, 40% of the bigger clients we get usually requires a dedicated server that my company provides through me. Not bad right? These plus a few more from my own efforts.

So whatever you are selling, may it be a dedicated server, VPS, reseller accounts or shared hosting it does matter a lot if you plan it and plan it right from the start.

Last but not least, always be realistic when you try to forecast. If it looks like it will fail, it will likely fail and vice versa.

start with a reseller account... if you build it ... they may not come... :)

Be prepared to spend a LOT of time (and sleepless nights) especially when you're starting up. Good luck in your venture!