Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Break even

[deltree]

Hi,

I've been thinking of signing up for a reseller for a while now and I've resolved not to unless I can get a decent amount people interested prior to it's set-up so i can break even. <removed>


Thanks.

[SLH-Ken]

Thats parta the game, you gotta take some risks in business, if you work hard, and provide excellent support to your customers, you will at least break even

[datums]

With a reseller I don't feel it will take along time to "Break Even"
If you signup 3 friends you could make enough to pay for the reseller account. Again your pricing model has to be on point with what market you are going after. Low-Cost is very competitive. If you want to offer high-availability hosting, I would stay away from a reseller account.


There has to be motivation.

[Gordo]

You're at the breakeven point now without the reseller account. So maybe you should stop before you are behind.

[Akash]

I've move the thread to the Running a hosting biz forum - remember - you may not solicit customers or offer services outside the ad forums..

[Indy4]

You should never start a business with the "break even" mindset. It is virtually impossible to break even on PAPER, breaking even is something that HAPPENS due to poor planning. If you focus on getting your business to a certain income, that's fine - but what happens when one or two customers leave, now you're losing a few dollars a month.

The idea is to set a long term goal on what your annual revenue should be. Or, if you want to think small, on what your monthly revenue should be. In otherwords, what's it going to take to get you to quit your job/hire other people/put the amount you want in YOUR pocket after the costs.

This is a business and there are risks involved, and you have to be willing to take them. You shouldn't sit around and wait until you already have customers ... the most successful businesses out there didn't tip toe around trying to cover their bases. They had a good plan, and dumped every penny that had into it to make it work. They knew they wouldn't turn a profit for a while, possibly even YEARS - but they were confident enough in their plan and their abilities to take that leap. If you're too afraid to get started and build it up, taking it where you want it to be, then running a business isn't for you. I would suggest you find a regular job, as you'll know what you'll be making the first day you start.

[Jay Suds]

Indy4 is exactly correct. Break even is a net cash flow of $0. That's loosing, IMHO. Your exposure is so small with a reseller account (what, maybe $50/mo???) - if you can't risk this amount then you shouldn't be in business.

Make a plan, and set resonable goals. If, in your plan, you forcast that you won't have enough customers to be cash flow positive for the first 6 months of your operations, then you now know how much money you need to have when you start the business to ensure it becomes viable. After you do become CFP, you are at the beginning of a long road, not the end. You need to continue setting goals about your revenue and profit levels and then taking action to ensure that you meet those goals.

[A Grateful Dad]

I completely agree with Indy4....

My wife and I risked $15,000 of our savings to get our business going and we still had not even answered a single phone call or sold a single package.

To make a lot, you have to risk a lot. It was the best thing we ever did.

The lifestyle and capabilities that my wife and I have now are far beyond what we ever expected!

Cheers!

/bin/false

[Brightadmin]

Most of the previous postings were good,

When you wants to start a business, BE Bold in taking decision. In another form i am telling the same

" HARD WORK WILL NEVER FAILURE"

Regards

[neorder]

I feel a business man could run a hosting business MUCH better than a server admin.

Indy4's posts are very educational, thanks.

[deltree]

You're a optimistic lot - I'm only a student I dont have much disposable income. I would only be able to keep a reseller going without any revenue for maybe a year and a half.

[jbigelow]

Originally posted by deltree
You're a optimistic lot - I'm only a student I dont have much disposable income. I would only be able to keep a reseller going without any revenue for maybe a year and a half.

A year and a half is a long to go with no revenue, if you don't think you can find customers in a year and a half what makes you think you can find them before you even have the service to provide?

Justin

[MeggarK]

u got more money than me and i still doin it deltree

[WirralNet Matt]

Originally posted by deltree
You're a optimistic lot - I'm only a student I dont have much disposable income. I would only be able to keep a reseller going without any revenue for maybe a year and a half.

I think on a low end reseller plan you should probably see profit within a few months. It took us about 4 months to get out of the red on the incomings and a further 5 months to make up all the money we had lost in the previous 4 months, but it was worth it!

As long as you can be committed to helping your customers wherever you can and to best of your ability, then im sure you will build a good reputation and be successful. Remember, the best for of advertising is by word of mouth

[gghosting]

Yep, you have to take risks. I didn't brake even until a few weeks ago and I had my reseller account since December.