Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Breakeven & review packages

[Wullie]

Originally Posted by adviser

Hi,

I bought a reseller package one month ago.
Since, I have spent a lot of time with Excel to check if my business plan sounds good.
With my reseller account, my unbranded WHMCS licence and Demowolf subscription, I plan to be breakeven with 7 customers (webhosting only, no domain names margin) on a monthly basis.
Do you think it's ok?

I think you have a major flaw in your business plan and it needs to be addressed. Your work out that your break-even cost is the same as approx 7 customer signups, but are you counting in all the costs associated with your company?

• Your time (Are you going to support these people?)
• Electricity
• Insurance
• Advertising
• Rent
• Internet Connection
• Phone Calls
• Office Supplies

The above is a quick few I picked off the top of my head but every single one of them should be included in a properly drawn up business plan. Yes you may have the house and internet already but a business plan should detail what percent of each is going to be paid by the business, simply leaving rent out because you have a house already isn't how a properly drawn up business plan works.

[Techy]

Originally Posted by Wullie

I think you have a major flaw in your business plan and it needs to be addressed. Your work out that your break-even cost is the same as approx 7 customer signups, but are you counting in all the costs associated with your company?

• Your time (Are you going to support these people?)
• Electricity
• Insurance
• Advertising
• Rent
• Internet Connection
• Phone Calls
• Office Supplies

The above is a quick few I picked off the top of my head but every single one of them should be included in a properly drawn up business plan. Yes you may have the house and internet already but a business plan should detail what percent of each is going to be paid by the business, simply leaving rent out because you have a house already isn't how a properly drawn up business plan works.

I think you are severely over-estimating what the OP has for a "business plan" and plans for running the operation. However, you are 100% correct that every expense should be looked at and detailed in the BP, if you have one.

[Wullie]

Originally Posted by Techy

I think you are severely over-estimating what the OP has for a "business plan" and plans for running the operation. However, you are 100% correct that every expense should be looked at and detailed in the BP, if you have one.

My reply wasn't specifically for the OP, it was more to show others in the future reading it that the costs associated with you breaking even include a lot more than a simple cheap reseller account. Too many people forget that their time is money and don't factor it in with their costs.

[jurupa]

Originally Posted by adviser

I will not compete with WHT members. I'm in the french market. There are some very well known hosting companies in France but I consider that it's less competitive than the UK/US market.

You are competing with WHT members no matter what, it being directly or indirectly. The fact that you run a web hosting company makes you by default a competitor in one shape or another.

Originally Posted by adviser

Yes, I know but the most of the offers are for those two markets, isn't it?

My answer was about competing against WHT offers with unlimited stuff. Check the shared offers forum, it's not a lot in France, that's why I talked about Uk/Us :-)

Try US and Europe.

Also I looked over your hosting plans in your op and have to say you must be packing a lot of terabyte drives in your dedicated servers or over selling. Also on your price point to what you get seems to be too good. This is a bad thing. You do realize most websites don't need more than a 1GB of space right? With what you are offering will also have you run a huge risk for wares and other such content.