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  1. #1

    please help me with my buisness plan!

    hey everyone.

    okay, i am biting the bullet and starting a hosting company as a reseller. i am looking to offer low cost, as well as great service.

    here is the break down of my expenses. (it ends up to be $100ish a month for a year(if you take the lump upfront sums and space them out over a years time)).

    Credit Card Proscessing
    Merchant account
    Per Transaction: 2.30% + .35
    Monthly Statement: $10
    Monthly Gateway: $15
    Domain Names
    $100 deposit in account for domains @$8.95 each.

    Modern Bill
    Unlimited Clients - $24.95/month

    For now
    Basic Reseller Account

    SSL Certificate
    $50 installed*

    Website Template
    (that last one because i couldnt design websites if my life depended on it. lol)

    what i get from the people im buying my reseller account from:
    for $29.99/month
    40 gigs transfer
    5 gigs storage
    2 ips

    now here is a break down of my proposed pricing schemes.
    keep in mind, all packages include:
    Server side java
    Persinal CGI bin
    many preinstalled scripts
    unlimited subdomains
    unlimited e-mail accounts
    front page extentions
    error logging
    C-panel 8
    unlimited support tickets

    now my plans would be:

    Basic -
    150mb storage space
    1gig transfer
    price $6.95/month

    higher package
    400mb storage space
    4 gigs transfer
    price $9.95/month

    even higher package
    750 mb storage space
    10 gigs transfer
    price $15.95/month

    Highest package
    1.5 gigs storage space
    16 gigs transfer
    price $23.95/month

    i am also going to have sales reps, giving them a big percentage of each sale they bring in(not a clue exactly how much, but something in the range of 20% of each month or so)

    now i know i havent included advertising in my expenses. thats one of the places where i need help in. i have looked into google (ad somethign or another), but it is way to expensive for me.

    i am hoping word of mouth will work for a while, and maybe some free advertising or somthing.

    thank you for all your help

  2. #2
    Who are you targeting? Having no idea of your business or who you are targeting, I suggest maybe offering a bit more bandwidth on your base plan(subjective opinion). Make sure you set your prices to determine your profit, and don't get caught in the dollar hosting trap.

    You really should draw a detailed plan of your ad sources and expenses. Because honestly, you won't get anywhere without some form of paid advertising. Places like google don't need to be that expensive if you find niche keywords. Word of mouth only works if you have existing customers.
    Last edited by Professor; 05-27-2004 at 10:32 PM.

  3. #3
    your plan looks pretty solid. good luck on your business.

    since you're targetting your local area, factor in also the costs of providing flyers, business cards, and other promotional materials you will use on a monthly basis.

  4. #4

    Nice plan!

    Well, im no expert but that sounds extremely good.
    Please keep us updated. ( ME especially), with your business. Because im planning on starting my own so time in the future.

    Bes of Luck!

  5. #5
    Join Date
    Apr 2004
    Phoenix, Arizona
    i am looking to offer low cost, as well as great service.
    Hi Josh,
    a few thoughts...

    1) It's a concern that the first use of "great service"
    was also the last. Nothing that followed in your plan (unless I missed it ) relates to support in any way. I'm guessing that's what you meant by "great service" or maybe you meant "great service" = "great plan specs" ?
    hmmm.. not sure what you meant. So maybe my point is,
    "where's the plan (and cost) for supporting your clients when they need you?"

    2) Have you already built a spreadsheet for this?
    It'll help you model the trickier aspects like sales commission.

    3) What is your "unique value proposition" ?
    If I'm a local business sitting across the table from your salesperson and I say... "But, I already have a website..." what answer are you going to train your sales people to give?
    (hint: if they start listing features and numbers of this or that, the prospect's eyes will glaze over)

    4) Get in bed with a few independent web designers in your local area. If they already have any business at all, you might be able to pursuade them to do business with you instead of (or at least sometimes) where ever they currently take their clients for hosting.

    5) Here's an idea that would give some media a reason to talk about you. Suppose your domain is called "",
    setup "" as a website that caters to matching non-profits who need volunteers and people who want to volunteer for something. Then you run around to all the non-profits and get them listed - for free. The goodwill when you tell people at the Chamber of Commerce meetings, and on various media, etc, will lead to some business because you are a good guy (assuming you're a good guy ;-) .

    Of course you have to be serious about it, and keep it up to date, mention it in your local promotions, etc.

    Good Luck !
    If you could host a new kind of content from your old-fashioned web servers
    and make new money from your customers and differentiate your business all at the same time... could you afford not to try? See the new site

  6. #6
    Join Date
    Mar 2004
    Thats a good list Dan.

    1) It is very important to differentiate your services from competitors. What answer would you give if someone asked you how are you different from the next one down the block? You can use your USP to help you sell your services.

    The answer to one of question Dan posted. 'What if i have a website?' what you would say to them is i understand you have a website, but their is room for improvement, you wouldnt want your corporate image to protected so and so (point out small errors, never defame or say your website is bad or such) our company can optimize it for you, re do it so it would be search engine friendly, place images that would take less time to load, include a content management solution or program an online helpcenter to increase your efficiency to respond to clients and with all that done you can use our reliable hosting to leverage your presence online.

    2) You also need to know your target market and know competitor weaknesses/strenghts. Once you have enough market knowledge you and your team can sell better.

    Best of luck
    "Web Hosting is not just about selling space, it is about facilitating customers needs with your plans and supporting the customer for a long lasting mutually beneficial relationship."- Yaser

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