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  1. #1

    How to start a small vps company?

    Hey All!! I was wondering if someone could teach me or link me some information on how to start a small vps company! I have invested & ready. I always wanted to start one and its time! << snipped >> comment below. Thanks Guys!
    Last edited by net; 12-03-2013 at 09:51 PM.

  2. #2
    Join Date
    Nov 2013
    Posts
    34
    I'm gonna give this a quick go:
    • Get yourself a dedicated server for your main website and control panel.
    • Pick and purchase your billing software
    • Pick & purchase any extra modules for your billing software
    • Install everything on your main server, harden it, prepare it etc
    • Get a web designer for your main website and integrate it with your billing software
    • Purchase a decent server for your VPS customers (Hypervisors)
    • Choose which system you wish to use (SolusVM etc)
    • Get a provisioning module for the system you chose, for your billing software to setup VPS on this server
    • Setup server, harden etc etc
    • Dedicated backup server to give your customers backup options?


    There's much more to it, I'm just touching base. Hope I'm on the right track but surely if not others will jump in and help!

    A few grand startup there with possibly another 1-2k a month depending on servers and licensing options you picked etc. There's a lot of research to be done, a lot of different options and pricing depending on your budget.

  3. #3
    Quote Originally Posted by SamLison View Post
    I'm gonna give this a quick go:
    • Get yourself a dedicated server for your main website and control panel.
    • Pick and purchase your billing software
    • Pick & purchase any extra modules for your billing software
    • Install everything on your main server, harden it, prepare it etc
    • Get a web designer for your main website and integrate it with your billing software
    • Purchase a decent server for your VPS customers (Hypervisors)
    • Choose which system you wish to use (SolusVM etc)
    • Get a provisioning module for the system you chose, for your billing software to setup VPS on this server
    • Setup server, harden etc etc
    • Dedicated backup server to give your customers backup options?


    There's much more to it, I'm just touching base. Hope I'm on the right track but surely if not others will jump in and help!

    A few grand startup there with possibly another 1-2k a month depending on servers and licensing options you picked etc. There's a lot of research to be done, a lot of different options and pricing depending on your budget.
    Thanks Man! Im going to start a small one and have saved up a couple of hundred. Thanks!!

  4. #4
    Join Date
    Jun 2006
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    949
    Quote Originally Posted by nathando3535 View Post
    Thanks Man! Im going to start a small one and have saved up a couple of hundred. Thanks!!
    A couple hundred and you are going to start a company? Uhhhh...you might want to rethink that. A couple hundred isn't even going to pay for a decent server for a month.

  5. #5
    Quote Originally Posted by wswd View Post
    A couple hundred and you are going to start a company? Uhhhh...you might want to rethink that. A couple hundred isn't even going to pay for a decent server for a month.
    I have saved a couple of hundred and still going. I just want to learn more before I start.

  6. #6
    Join Date
    Apr 2009
    Location
    New York City
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    You have to prepare yourself when it comes to starting a VPS company this isn't shared it reseller hosting that we're talking about its a whole new ball game when it comes to servers it's also best that when anyone starts a VPS company that the company has funding available and a lot if it. You should have findings as much to keep the business running for a year or two without even making profit now that's called investing. If you start this with just a couple hundred dollars you better be sure and watch every step you take. Any mistake can cause you everything. You might just be better off taking that couple hundred and buying straight lotto tickets and hoping you get a good lotto ticket because you will for sure be hoping for some clients if you don't build the foundation to your VPS company the right way. And by foundation I mean servers , business plans , content on site, web design, network , partners , affiliates anything that will help you in the long run start building trust with it.

  7. #7
    Join Date
    Nov 2013
    Posts
    34
    Also, if you don't know much about web hosting, I would suggest with a couple hundred to start off reselling.

    Whether you choose Shared Hosting or VPS, you are going to need a dedicated server if you're not interested in reselling.

    I gave you an example above of what type of setup you would need, and I mentioned that you'll also need to look into all the software and licensing.

    cPanel on its own will draw you back $425 a year (~$35/Month), want to through CloundLinux on top of that or not (up to you), another $150 a year there. Then you need to also look into cPanel's license agreement which states that they will not allow you to work with US sanctioned countries.

    Your web design, unless you want to go the template route for $12-$40 will cost you a good $1,000-$1,500 for a fully custom design from the ground up, made to your specifications.

    Your control panel server may cost anywhere from $100 to $500 a month, and you wont be making any money off this server. It is essentially your front of house server and your first impression to your potential clients.

    Your hosting server also depends on your budget, but also in the $100-$800 a month depending how much you want to invest.

    I'm recommending a backup server because you want to have your own main server backed up, as well as your clients. With VPS, your clients can opt to have backup at an extra cost. But with shared hosting I'm pretty sure you don't give your clients that option and actually backup the whole server for your clients in case of issues.

    Backup server has to have the storage to store everything, so probably also in the $100-500 mark.

    Be prepared, just for servers, anywhere between $300-$2,000 per month. You will not fill up your servers in a short period, unless you are purchasing other small businesses customers. But even that you need more money up front to do.

    If you are paying $1,000 in servers, how many $5 a month clients would you need to even start breaking even? 200 or so? How long do you think you can gather 200 clients so that you're no longer digging into your own pockets? Will you also be spending monthly fees on a support team outsourced?

    Then, you also need to take into consideration how much load you want to put on your servers. If you spent small on basic servers, it wont be long before your clients feel the server slowing down and their service quality dropping. Will you be monitoring your shared hosting server to make sure you never overload your server? If so, this takes more of your own time, which you could be using sourcing more clients in your local area?

    Scary isn't it? But if you are willing to take the risk, and have a vision, don't only save a few hundred... save a few grand ($20,000-$60,000) to keep you afloat for 2 years (the average time for any business to start making money and seeing profits). That is, if you are 'SERIOUS' about business and not just doing this for a hobby, then different story and I suggest 'reseller'.

    When you have the vision, and you are like me, a fellow entrepreneur, plan everything, research for weeks on end, spend your days reading, researching and participating. Keep your job, save up...

    Most important, write up a business plan (www.liveplan.com for $20/month will help you greatly, and has helped me in the past with my own business outside of hosting industry). Your business plan should include everything from about your business, goals, marketing strategies, budget, costs etc. In the future, you will be able to follow your business and compare that to the plan you had written, keep yourself on track to that original vision, or modify it.

    Again, good luck, and feel free to keep asking here

  8. #8
    Join Date
    Aug 2006
    Location
    USA/UK
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    111
    I don't think $200 will cover the first months expenses friend.

    Server
    Server set up and hardening
    Control panels
    VM control panel
    Domain
    Design/site
    SSL
    Billing system
    Marketing?
    on
    and on
    and on
    and on..

    You need a good few $xxxx to get a good start.

    Good luck.
    “In the midst of chaos, there is also opportunity”
    ― Sun-Tzu, A Arte da Guerra

  9. #9
    Join Date
    May 2009
    Posts
    43
    If you have good unique idea ypu can start earning even from first 2-3 months ... Do not offer standard hosting, offer something unique for your clients.

  10. #10
    Join Date
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    A few hundred simply won't cut it.

    Get experience first by setting up a reseller and getting your first 20 clients. By the time you have 20 clients you should have enough experience in the Industry to know what you need to do.


    Your few $ that you have is enough to get started as a reseller, and provided that you actually gain 20+ clients within the first year you might even be sustainable. Once your Reseller Business is cash-flow positive, then put it all aside for your investment into your VPS business.

    The next logical step would be to resell VPS's - and once you have 30+ VPS clients you are probably in a position to be able to consider running your own Node(s).
    CPanel Shared and Reseller Hosting, OpenVZ VPS Hosting. West Coast (LA) Servers and Nodes
    Running Linux since 1.0.8 Kernel!
    Providing Internet Services since 1995 and Hosting Since 2004

  11. #11
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    I've forgot to mention why not just go with a VPS reseller? With the funds you have already now you can easily use this to get resources to start now small. You should get a reseller account with cPanel offer basic shared hosting and resell a providers VPS there are some wonderful resellers out there that you can put your price over theirs most of them also include lots of addons that you may be able to use.

    Start shared hosting build your client base from there so you can then use the income from that and invest it into offering VPS servers.

  12. #12
    Personally I think you can make a VPS company with a few hundred dollars. Why don't you to start off just buy a high end dedicated server with a lot of IP's and set up Open VZ or something on it and sell away the VPS's. And then once you get enough revenues start thinking about other options...

  13. #13
    Join Date
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    Quote Originally Posted by nathando3535 View Post
    I have saved a couple of hundred and still going. I just want to learn more before I start.
    Just rent dedicated server and install it with virtualisation management like solusvm or proxmox, they are very easy and cheap solution to start a small vps company.

  14. #14
    Join Date
    Nov 2011
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    Quote Originally Posted by LuxuryServers View Post
    I've forgot to mention why not just go with a VPS reseller? With the funds you have already now you can easily use this to get resources to start now small.
    This is how we got our start. We resold only BurstNET's "premium" VPSes (and I think we sold a handful of Xens) before colocating our own hardware with them and doing it all ourselves. We still have clients on those VPSes who swear by them, so it worked out well for all involved.

    But before you even think about that, find a niche for yourself. What are you going to offer that all the other VPS providers don't already offer?
    Fresh Roasted Hosting :: High-performance Harrisburg web hosting since 2012!
    "The only thing better than the world's best customer service is never needing them in the first place."
    Shared :: VPS :: Reseller :: Dedicated :: Co-Location :: SSL Certificates

  15. #15
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    Quote Originally Posted by FRH Lisa View Post

    But before you even think about that, find a niche for yourself. What are you going to offer that all the other VPS providers don't already offer?
    This is a good thing you mentioned find a niche for yourself.

    You should before all things write a business plan that is strong. Include in your business plan almost everything that has to deal with running and managing a business. From company goals , profit margins , capital spending , sales , support , network every aspect that has to deal with you forming this business. Write down how will you market your services and how will you be able to meet your clients demands. There's a lot more to it I'm spitting out baby stuff compared to big boys business plans.

    With this business plan you can always add to it never remove from it unless it's a critical thing.

    You may want to check the running a web hosting business tutorials out here on WHT you can find the forum on the home page there are tons and tons of good VPS selling and marketing / managing tutorials and guides written but great contributors of WHT.

    As for your niche find out who will you sell to either it be gamers , businesses or anything else...

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