Well if you can find a web site hosting company that is currently creating hosting accounts and has a customer base, look at the opportunity cost. It could be extremely valuable to buy a hosting company. Unfortunately finding a good good hosting company to buy profitably may be hard to come by.
It depends on if you are looking to get into hosting at first for the profit that you receive from buying out someone else's hard work or if you would value the business turning profit that you created from your own hard work.
Lets say for example you decide to buy a hosting company. They have a certain type of buisness plan they like to run. They have a client database of lets say 100. Now each and every customer is satisfied with the service they are receiving. The company is streaming along and they decide to sell because you made them a offer they cannot refuse. You take over and decide to change the buisness plan. The customers leave. Then you'll be out of alot of money. I recommend just starting your OWN and down the road by Clients not the full company.
Some people do not know how to properly finish an acquisition, so clients do end up leaving. However, in some cases, it isn't too difficult to transfer the clients. Provided, you will most likely lose a few who do not wish to be "sold." But, I also reccomend purchasing clients after you have your own company established.
I know the first company I hosted with was a company called Goldenhosting.com which was later bought out by some other company. The transfer was soo poor due to interrupted service and inadequate support that I had to look elsewhere.
Re: Buying a hosting company or starting your own?
Originally posted by rsiDaniel intersted to know if it's better to buy a web hosting company or to start your own?
How much do you want to invest ?
What does your extensive business plan say ?
What have you calculated the cost-per-client acquisition to be for new business ?
How long do you intend to run the business for ?
What kind of name/reputation/systems will you be buying ?
It's neither better to buy nor better to start, it depends on way too many factors ....