Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : Running a Web Hosting Business Tutorials : Common Mistakes New Businesses Make

[SameerHosting]

Thanks for the information, this will surely help me out with my new plan model.

[sazanality]

Nice points.
I made some of these mistakes.

[ProfJ]

Decent information. I'd definitely give these ideas some thought before starting anything serious to all the newbies out there.

[acchost]

Hey great read thanks

[SupportivHost]

Very nice post.

I have to agree with all of your points. The most common mistake is not setting the right price. Many new host think of there pockets no and worry paying for there cheap reseller.

[Ableer Web Services]

Hosting companies do make allot of mistakes, one that I notice a quite often is when a new hosting company posts an advertisement in a forum's market place they expect that they will get customers right off the bat. This is far from true... statics show that it takes a client 7 views in order to go with a hosting company that they find in a forum. Which if they make a customer in the first 2 days then they are doing better than so many others. The reality is, a hosting company is not going to do the work for it's self, and definitely not at this time with all the new hosts coming into the market daily.

Basically, you are gonna have to work if you want to make it. You can't run your company on auto pilot and yet have a great company. The business world doesn't work that way, and life does not work that way. I believe that every hosting company out their who has a good strong team, rather it be 2 or 40 and also has the dedication required in today's market can make it in the industry as yet another good hosting company.

[BloodRed]

Nice post, should be made sticky in New members intro section.

[laswatech]

Very informative tutorial..thumbs up..:-)

[Disrelation]

Wow, this thread was very informative and covered a lot of mistakes that could be fatal to beginning companies. This was a really good thread and definitely should be read by those whom wish to start their own web hosting company.

[the_dreamer]

Originally Posted by cywkevin

Competitive Analysis

(some people choose to include this in "Market Analysis," but
that is your choice): The section will show that you are fully aware of the competitive forces at work in your marketplace. It will explain your strengths over the competition, as well as how you will counteract their advantages and overcome (or compensate for) your potential weaknesses.

Common Mistakes:

1.Not identifying known major competitors
2.Underestimating competitive strength and potential
3.Failing to demonstrate what makes you better
4.Having no strategy for counteracting current (or emerging) competition
5.Assuming you have no competition
6.Failing to show an awareness of competitor’s plans in the market and their business
cycles.

In my opinion, competitive analysis is the most important factor to consider when setting up a hosting business. A business owner should be able to see very clearly how he is going to conquer the market. It's like going to a battle fully-armed and ready.

[Disrelation]

Originally Posted by the_dreamer

In my opinion, competitive analysis is the most important factor to consider when setting up a hosting business. A business owner should be able to see very clearly how he is going to conquer the market. It's like going to a battle fully-armed and ready.

I completely agree with this post, business owners going into ANY market should analyse their competitors when developing their business.

[Cidots]

Thanks for the information! No Mistakes = Good Business

[caisc]

Nice guidelines, that needs to be revised from time to time.

Thanks

[tacgrp]

Very Nice thread. This will be helpful to anyone looking to start or are already in business.

[kytech]

THANK YOU SO MUCH for this great tutorial! Hopefully I won't make any of these mistakes. Great information.