Me and my friend are thinking about putting in about 3000 dollars to start a web hosting business. Will this work and could someone please recomended how i should use the money?

A successful business has nothing really to do with how much startup capital you have.

Yes it could work, or you could use it, go unsuccessfully and end up in debt.

Nobody can say yes or no, it's upto you and how you run your business. If you do not know much about running a webhosting business, it's probably best you don't start running your own until you know a little more about it.

Nobody is going to write you a business plan.

Well I'd suggest putting aside $100 to take your bank manager for a business lunch,
but before that:
Research, create a business plan to include your USP[basic hosting is pretty much a saturated market], and how much 'working capital' you need,
because I very much doubt $3K will keep 2 people out of trouble for 3 - 12 months
while you get established.

Maybe better to send yourselves off to a 'business course' before doing anything else.

Me and my friend are thinking about putting in about 3000 dollars to start a web hosting business. Will this work and could someone please recomended how i should use the money?

I have to agree with whats already been said.

my advice...start a business that your good at and know the most in.

by the sounds of that comment, web hosting is not one of them.

We cant tell you what to spend the money on or if its enough. thats up to you and your business partner to deside.

After all we dont know what servers you need. what your going to use them for etc etc.

I started with $100, and lets just say i got a lot back from my investment, but its not like i am a big host yet, It takes time and hard work, I will usually spend 8 or more hours a day working on my business just because i enjoy it and sometimes i may need to stay up till 4 in the morning helping a client even if i have a meeting at 7 in the morning the next day. But i do it because i like it and I love learning new things about web hosting.

welcome to wht.

there is a lot of information here on wht. go back a year in this section, and start reading the experiences of others.

Me and my friend are thinking about putting in about 3000 dollars to start a web hosting business. Will this work and could someone please recomended how i should use the money?
No, unless you're very experienced in the hosting business, there's a good chance you'll lose your money. Put it in the bank on whatever interest you can, or go out and blow it on a good time.

if you're lukewarm about being a host get your feet wet with a vps before buying/colocating your own equipment or renting a more expensive dedi. That way hardware management is out of your hands and you can focus on customer care, which is your best bet for differentiating yourself in a saturated market.

I think you could start a good going Company with 3k, I'd say spennd it in the servers,software,domains,site design, whmcs, and little stuff that you can get here and there for your company.

you can start business with just 25$ capital if you are just starting because you need to test yourself first.go to hostgator and get a reseller and start with shared hosting plan first. If client increases or demand get a good vps and after that go for renting a dedicated. Its all depend on what market you target and also invest some money on marketing. It doesn't matter how good hardware or support you giving. If people don't know about your company or service how can you get clients so focus on marketing also.

Just sit make a plan on paper and start with reseller ,vps or dedi.

You could start a business with $0 or $999,999,999,999 - it's your business plan that matters and how you plan on making money :) The fact that you asked this question to me means that you don't know enough about what you're trying to do and you haven't thought about it enough.

Looking at the money involved I assume you are serious; I'll echo what others have said about making sure you have a sound business plan as it will make or break your business from the start.

Some minor advice along the way:
-Don't overinvest, try to buy what you need as closely as possible (so for example VPS instead of Dedicated servers)
-Research who you buy from, don't be afraid to spend a little more for quality
-Customer service is king, you are selling a service, not webspace.
-Don't expect to profit soon

Research first before you jump on the wagon.
Read more about hosting the cons and pros then you decided if this is the path you want to go.

you can start business with just 25$ capital if you are just starting because you need to test yourself first.go to hostgator and get a reseller and start with shared hosting plan first. If client increases or demand get a good vps and after that go for renting a dedicated. Its all depend on what market you target and also invest some money on marketing. It doesn't matter how good hardware or support you giving. If people don't know about your company or service how can you get clients so focus on marketing also.

Just sit make a plan on paper and start with reseller ,vps or dedi.

Hi there,
You got a good point in marketing the business. But the question is, where to go and start your ads on a little money like that? Said he started the hosting company and 1k out of 3k is gone. Where are you recommend to use the other 2k for ads? I have 5k in my pocket right now and about to start a small company. I know how to control the servers, email, ftp, cpanel ect... My weakness part is to go and adverstise the company. Do you have any advice?
Thanks

Me and my friend are thinking about putting in about 3000 dollars to start a web hosting business. Will this work and could someone please recomended how i should use the money?As others have already stated here, yes it could work. Ultimately it depends on how much "sweat equity" you're willing to invest in your endeavor. The hosting industry is hands down, one of the most competitive businesses to get into. That being said, I personally feel that the need will always be enough to continue to feed the industry. I'd recommend on focusing that initial 3k on bare essentials. (leasing a small server, support software, & a custom design for your site etc) Don't underestimate the value of what a custom design can do for you in this business. Whatever you do, don't blow a dime of it trying to test out various advertising methods. Save that for when you have a much higher budget. Instead, focus on word of mouth and free marketing methods. (social networking etc)

Good luck!

The bottom line is if you have to ask a question like that, on a public forum, then no, most likely you're not ready and you're wasting your time and money.

You'll need more than 3k behind you, hosting is in no way "get rich quick" - it's more "make an ok living slowly"

You'll need more than 3k behind you, hosting is in no way "get rich quick" - it's more "make an ok living slowly"
Yeah, or get rich very slowly. :D

Without planning it's like any business:

Get poor slowly if your lucky !

my opiniion is 3k$ is small budget to develope ur business well; however that budget is still not small for web hosting business :D

Yes, you can start hosting for as low as $10/mo. I started years ago at a rate of $35/mo for a reseller. And that was CHEAP then.