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  1. #1

    Post I am planning to start a web hosting company. please suggest on the following areas

    My aim in my life is to start a business and to become my own boss I am planning to run a small web hosting company. I had made research and understood the key points about how to run and become stable in business. I have enough money to start a business and also have 12months operating expenses backup plan, if it exceeds i can arrange money some how. I had few months experience in working web hosting company and gain some knowledge on the same.

    I have a business plan.(requirements, Pricing, To Do,etc..).I don't have marketing skills but i have management skills. I like to start my business legally by registering my company, signup with reseller hosting space from a reputable provider, Renting a fully furnished office, hire 3-4years experienced marketing staff(2no's), technical staff(2no's), designers(2no's), content writer(writing support articles to knowledge base, articles for online marketing, for new clients profiles, services & product), Outsource: Search engine optimization(SEO). I will also invest in offline advertising like local newspapers, word of mouth passing business cards.

    I am little bit tensed, confused whether this is the right step and ask these following questions several times in my mind
    1.will the marketing guys will do a good job & get clients for my business ?
    2.will my business get stable in not more than 6months (i am not expecting more and more gain, but should not get heavy loss and flop)

    3.In my local area there is heavy competition for web hosting business, can i push them back of me and can i become a successful entrepreneur.

    I know there is tons of stuff on this forum & on the net. Please spare some time for me and suggest DO'S & DON't (good and bad) in this field. suggestions on the above questions, your experience, ideas are greatly appreciated

    Thanks in advance

  2. #2
    Quote Originally Posted by smiley_jack View Post
    I am planning to run a small web hosting company.....hire 3-4years experienced marketing staff(2no's), technical staff(2no's), designers(2no's), content writer(writing support articles to knowledge base, articles for online marketing, for new clients profiles, services & product), Outsource: Search engine optimization(SEO).
    After reading your post my first impression was "So much staff for a small webhosting start-up?" Do you plan to pay a fixed monthly salary to them?

    Your thread would fit better in the "Running a Web Hosting Business" subforum at http://www.webhostingtalk.com/forumdisplay.php?f=6

    Tom Tomson

  3. #3
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    1. That is a question you should ask them before hiring. Realistically, it sounds like you're spending a ton of money up front. Can you really afford to hire multiple people when launching a new web company? Will you make enough income each month to pay off these employees (including yourself and other expenses)? If so, more power to you. From my experience, its best to spend as little amount of money when possible during the start up stages. Otherwise, your bills will be hanging over your head and you'll have no money to pay them back, essentially, causing your business to fail.

    2. Depends on a ton of things. How does your business plan look? The main thing, how can you branch away from other hosting companies? You said there was a lot of competition in the area. How can you attract those customers into signing up with you instead of bob hoster? If you're only answer for obtaining new customers is "cheap prices" and "great technical support", I bet you're business will flop shortly.

    3. Answered in question 2.

    Don't spend all your money to start up the company. Spend as less as possible. If you're going with a reseller plan, buy a small reseller plan (to save money) and slowly upgrade to bigger plans when needed. No need to start off with 100gb space and 1000gb of bandwidth for $50/month when you don't have customers and/or when you don't need that much resources.

  4. #4
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    To be honest, I don't think you'd really benefit from having an office early on. The market is tight and things will likely be slow at first. Once things start picking up then I think you could justify the costs of an office suite.

  5. #5
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    Apr 2011
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    - Do not start reselling web space. This happens often with new hosts but it's the wrong first step. Rent your first dedicated and get external administration at the beginning. In the meantime rent a vps and become familiar with the os of your dedicated server and the control panel you are going to offer. This way at some point you'll be able to do server administration and control the work of your sys admins.

    - Choose where you'll push more. Local or global.
    Local requires a strong sales department. Global no. I mean you can hire less personnel for your sales department if you do sales only online.

    - Choose your clients before they choose you. I mean define your target/client. Do not try to be a budget and a super quality host at the same time. Define what you are before the others define you.

    - Hire the personnel you need and not the personnel you/a company "should" have. For example you do not need to hire a designer. Trust a design studio or a talented guy ( better if they live in your area ) to design your web site, build a good relationship with them and learn to manage your web site. Hosts' web sites are not that dynamic and the content is almost static and same for months and months. The additional functions like client areas, knowledge base and help desk are usually pre made applications that you can afford and easily setup. They require basic maintenance and content can be added easily. The designer/developer will help you integrate them in a nice way.

    - My opinion is that the most important personnel is the support department. Those guys will build your name. A good server administrator is a must have but you can outsource this till you or one of your guys do the homework and learn to admin.

    - Keep your personnel happy but don't make them "co-owners". Try to build friendly relations and always care. But you are always and every single moment the boss. Don't trust anybody and make them sign contracts written by good lawyers. Protecting your privacy, the privacy of your clients and the company secrets is number one priority and you should care before.

    - Take advantage of web sites like webhostingtalk to promote your business. You don't have to spend money, just be yourself and the possible clients will appreciate it and consider your business.

    If you choose to be more a kind of a local host and not global then try to build a good relationship with some guys that work in papers, magazines. Support the local community and become an active member.

    - and many many more things. I've just realized that my post is getting really big, so I have to stop.

  6. #6
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    you should start with small investment, hiring this much employee will trouble you a lot in future

  7. #7
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    Quote Originally Posted by MBGear
    Do not start reselling web space. This happens often with new hosts but it's the wrong first step. Rent your first dedicated and get external administration at the beginning. In the meantime rent a vps and become familiar with the os of your dedicated server and the control panel you are going to offer. This way at some point you'll be able to do server administration and control the work of your sys admins.
    I disagree. Reseller is often the way to go early on. I would rather have someone hosting me on a reseller than on a dedicated server/VPS that they don't know how to run. If you have money and want to practice running a dedicated, you could get a cheap box just to practice on but don't host anyone on it.

  8. #8
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    Quote Originally Posted by MikeWalczak View Post
    I disagree. Reseller is often the way to go early on. I would rather have someone hosting me on a reseller than on a dedicated server/VPS that they don't know how to run. If you have money and want to practice running a dedicated, you could get a cheap box just to practice on but don't host anyone on it.
    On my previous post I gave the advice to get a dedicated but with external administration/managed, at the beginning. Hosting others on a dedicated, having an experienced external admin/hosting company to manage it, is for sure better than getting a reseller's plan on an oversold server. In any case these are opinions.

  9. #9
    You Should Establish Your Website On The World Wide Web FIRST! e.g. "BackLinks (as many as you can) Business Image,Search Engine Ranking,Few Good Loyal Clients and More" Before going into something thats Generating NO Revenue For You Initially! Im a Business Developer and Webmaster If You Need Some other Good Pointers PM Me. Thanks

  10. #10
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    I hear so many comments about start reseller firstly. Yes, I agree. But I hope you must choose a best hosting company without downtime and nice support. Also, your price for first clients must be lower more than.

    Good luck.

  11. #11
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    Quote Originally Posted by hclloveh View Post
    Also, your price for first clients must be lower more than.

    Good luck.
    Business plan...

    Price is not an issue if you are providing good services.
    Specially 4 You
    .
    JoneSolutions.Com ( Jones.Solutions ) is on the net 24/7 providing stable and reliable web hosting solutions and services since 2001

  12. #12
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    No, maybe I mean "promotion". Cheap price is just first time.

  13. #13

    Thumbs up

    You could start by having a reseller hosting with anonymous hostname if you have limited money. If your ready to invest more money like i assume 35-45$ then you could get a Self Managed VPS with cPanel,Softaculous,RV Site Builder,Zamfoo(Optional) installed on it and if you find a provider in which your ready to buy ask some questions like How many cores does it have, Price of addition IP(s),RAM,CPU,etc and make sure you note the response time too!

    Managing a cPanel VPS is easy if you know the basis. Spare some time to read some tutorials on how to install cPanel and protect with Firewall. If you know how to manage a cPanel server then you might not need to hire some technical staffs unless you have greater amount of customers in your hosting business!

    For the competition, just look at other hosts that you know and compare the price with yours! Make it to lowest first and after getting some more customers you can raise the price step by step and see the progress of the income! Try running some offers and some coupons too.

    Ok, Now if you have lots of customers, i assume you have collected some money to buy another VPS, for the next server i recommend you to get a VPS located other than USA, For example Germany or Netherlands or Singapore. This would also help you to gain more income if you price it same as that of your first server!

    If you feel that your business is not getting the income that you want then try harder and harder until you succeed

    Advertising in Google Adwords is a good idea! Also you can post your offers in WHT itself

    Good luck

  14. #14
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    Talking

    Quote Originally Posted by smiley_jack View Post
    My aim in my life is to start a business and to become my own boss

    Renting a fully furnished office, hire 3-4years experienced marketing staff(2no's), technical staff(2no's),
    First you need to start web hosting business from your Home(one man army) and when your business grow then rent a office,etc...

    Web Hosting Business:
    1st Rule: In starting do not invest lots of money.


    Quote Originally Posted by smiley_jack View Post
    1.will the marketing guys will do a good job & get clients for my business ?
    NEO believe on you, no one will be help you in grow your business.

    Quote Originally Posted by smiley_jack View Post
    2.will my business get stable in not more than 6months (i am not expecting more and more gain, but should not get heavy loss and flop)
    Its depend on your marketing/advertisement, some of big hosting companies grow within a 1 - 2 year.

    Quote Originally Posted by smiley_jack View Post
    3.In my local area there is heavy competition for web hosting business, can i push them back of me and can i become a successful entrepreneur.
    Its a good for you, It means you don't need to spend your time on finding good reseller hosting company.

    Provide good service and your business will become a Top #1 in anywhere(local/international)
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  15. #15
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    Quote Originally Posted by MBGear View Post
    On my previous post I gave the advice to get a dedicated but with external administration/managed, at the beginning. Hosting others on a dedicated, having an experienced external admin/hosting company to manage it, is for sure better than getting a reseller's plan on an oversold server. In any case these are opinions.
    I strongly disagree. IMO, a reseller is the perfect place to start.. Who said reseller accounts are overloaded? You're only going to get overloaded reseller accounts when you start going for the dirt cheap reseller accounts (and those offering master reseller accounts). Spend a bit of money, and you'll end up with a reseller that can potentially give you better uptime than having your own server.

    Getting your own dedicated server and learning server administration I don't think is a great idea either. I don't think it's a good idea for someone to learn on a live production environment that has the potential to damage someones website. If you have server administration, then you'll end up being dependent on them. You don't need your own server to be a "serious" web hosting company. I see so many pretty decent sized hosts downgrade to reseller accounts.

    Best route would be a reseller from a reputable provider. Then download and run linux in a VM on your own computer to learn if you so wish to do so. But jumping straight to a dedicated server with server admin will be nothing but a headache and money wasted.
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  16. #16
    Reading your thread it does not sound like you are ready to start a web hosting business. You want to see profits in the first 6 months, have like 8 employees starting out of the gates and ask if marketing guys could do a good job?

    In the web hosting world it will take a year or two before you start coming out ahead and much longer if you want to make it big. It took GoDaddy, I believe 5 years to become profitable.

    If you start out on your own, yes you can become profitable with 6 months but not have much of an establishment too.

    I wish you the best of luck!

  17. #17
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    Sounds like you have some decent start-up capital. If you have the money for an office and all teh equipment, go for it. But if I was you I'd use the money on a decent server, a decent admin, and 2 techs, all working remote, with you taking up the slack on the ticket system (filling in on shifts).

    You'll need a designer to make your site but after that just have a few designers on hand to do the odd job here and there. Also outsource the content writing and SEO.

    If you want to compete in the local market it can be done but make sure you are contactable. Have a home office with phone. Maybe get one of your techs in the phone system through VOIP/PBX so you have almsost 24 hours phone coverage.

    SEO and online marketing takes times so if you compete in the local market look to get your first clients there. Print flyers, contact newspapers to get your flyers included, take out the ads, work with your local Chamber of Commerce. You could do up a DVD showcasing your website with you introducing your business. Team up with a local designer to offer design + hosting. Package up your DVD with Flyer and walk around town dropping an envelope in at all the local businesses.

    Sponsor local events. Put out radio ads. Local TV ads. Set up a stall at a shopping mall (if they allow it) and hand out flyers.

    Find a local and popular cause or charity. Create an event or competition to raise money for it, get the press involved.

    Open your eyes, look at what other businesses are doing locally to promote their businesses, make their ideas your own, expand on them.

    Find people to do all the above if you have the cash. Apply for a loan if you don't. Find out prices for everything, include in business plan, hit up a bank, borrow money and if it all doesn't work out file for bankruptcy and walk away with knowledge and experience and no liability.
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