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  1. #1

    Financing your business to start

    I am just wondering, what were some of the ways you guys financed your business in the start? Was it from your own funds, savings, etc?

  2. #2
    Join Date
    Sep 2004
    Flint, Michigan
    Well it depends on the business you want to run of course, mine was origionally financed by a savings account that that I had for a decent amount of time.

    If I was looking to open up my own DataCenter, there would be other ways of going about it
    Mike from
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  3. #3
    Join Date
    Feb 2004
    Your Screen
    Start out small, and build your way up.

    I've never "financed" anything; if I didn't have cash-on-hand to do it, I didn't do it.

    I started out on the web by building a website for my bricks-and-mortar gift shop. That original gift shop's hosting plan was paid for by the sales made from it. I never had a month where I didn't sell at least as much as the hosting cost.

    I upgraded to a reseller-type account, started building other peoples' sites (friends are a great place to start!!!) and built a couple of my own hobby sites. I started to collect domain names with brilliant ideas of how I would develop them in the years to come. (LOL, haven't we all been there?!) The sites on that reseller account always brought in enough money to pay for the hosting.

    At a point where I had sufficient money coming in to pay for a dedicated server, I upgraded to the dedi.

    Now here's a funny story...

    The winter I decided to upgrade to a dedi, I was stuck in bed for months on end with a bad, bad case of pneumonia. All I had energy and physical capacity to do, was lay there and read and type. I went through the business numbers and seeing as income from hosting those acquaintances' sites and my own projects was consistently bringing in enough to cover a dedicated server, I went ahead and decided to go ahead and order a dedi.

    Within 48 hours of making that decision (but I hadn't actually ordered it yet) I was contacted by a data center who wanted me to help them with online sales and moderate their boards for them. The arrangement included the use of a free dedicated server to play with and learn on. No better way to get your people up to speed than to give them a box to break. Well... of course that worked out perfectly in terms of my personal plans!

    That was four years ago.

    Today a server is not ordered if it cannot be paid for outright. The business is run using a JIT model which is very easy to do in hosting, unlike many other industries (particularly specialty retail which is where my roots are). The business is growing steadily and completely in the black.

    Now as justadollarhostin said, the story is completely different if you're setting out to build a data center. If you're wanting to open a new D.C., you will either need to be very wealthy, or borrow several million dollars to get the doors open, the facility stocked with equipment, everything set up, hire staff, and make your commits.

    So that's my quick trip down memory lane... for whatever it might be worth! (And that might not be much! LOL)

    Let's Connect on Twitter! @thatsmsgeek2u || Fighting mediocrity one thread at a time.

  4. #4
    Join Date
    Jun 2004
    There are many ways you can build up funds:

    Personal savings, close family and friends, bank loan, overdrafts, government incentives..

    You just have to pick what is actualy a reasonable option.
    It's Scott!

  5. #5
    Join Date
    Apr 2005
    San Francisco, CA
    Business Loans - they issued for up to 2 years and have fair APR - it's works for us.

  6. #6
    Join Date
    Jan 2002
    The business partner and I used our own funds. One of my rules is when borrowing that I must have at least the same amount of funds in liquid form somewhere. Hence I really do not borrow.

  7. #7
    Join Date
    Jun 2004
    Originally posted by Josh Stein
    The business partner and I used our own funds. One of my rules is when borrowing that I must have at least the same amount of funds in liquid form somewhere. Hence I really do not borrow. [/B]
    Good decision.
    It's Scott!

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