Web Hosting Talk : Web Hosting Main Forums : Running a Web Hosting Business : When to call it quit?

[jt2377]

When do you call it quit? If your business is not growing and yet its not dying much. I have a full time job now and the hosting biz was started when i was in college and due to full time job. I don't have much time on my side biz and i also want to try something else and ditch the web hosting biz.

if you know you don't want to do it anymore. is it the time to close up shop and move on? how do you tell your existing customers and bow out gracefully?

[ForumsAddict]

Just sell the company and customers. Write up a good by letter and thats it.

[01globalnet]

Yes, sell the company to a reliable provider, so that your customers are safe and get the same or better service.

Good luck!

[David]

jt,

If you know you no longer wish to pursue it as a full-time job, it's certainly time to bow out. Better now than before you completely get sidetracked & the clients are left to rot.

You'll be able to pick up a decent amount of funds in return for any decent company these days, generally 10-12 months of revenue but there are a number of variables.

Best of luck with the new ventures & God bless!

[Xylitol]

People seem to keep these company sell-outs as simple transactions but they really aren't.

How do you contact another isp for selling your customers to them? Just email them and ask if they want to buy your clients(sounds a bit harsh)?

[IRCCo Jeff]

I've always heard 15 months of net profit is the selling price for most companies (and that's from a Top 50 business school).

On that note, it takes a least a year for most businesses to become successful, profitable, etc.

[Anky]

Originally Posted by IRCCo Jeff

I've always heard 15 months of net profit is the selling price for most companies (and that's from a Top 50 business school).

On that note, it takes a least a year for most businesses to become successful, profitable, etc.

That makes sense, but remember, under $500,000, most businesses sell for less than what they're worth. A business is only worth as much as someone is willing to pay for it.

[QiSoftware]

Is it that you were offering your hosting clients a really good deal that you cannot sell? Managed hosting with great rates?

Q...

[voxio]

I'm afraid i don't agree with the "sell your business" stance.

When i decided to close one of my web hosting companys (around 80 subscription customers) i gave them all a free months hosting and advised we where closing our doors. This allowed them time to move their files to a new webhost of their choice.

[ameeriklane]

It sounds like it's a good time to sell. What I would recommend is that you spend a lot of time with potential buyers, to ensure the service they will provide to your customers will be at the level they are used to.

[gate2vn]

Originally Posted by ameeriklane

It sounds like it's a good time to sell. What I would recommend is that you spend a lot of time with potential buyers, to ensure the service they will provide to your customers will be at the level they are used to.

I agree with this. Also make sure to inform your customers about the new management. If they can keep what you're offering, or even better, I see no reason for customers complaining. In fact, you still keep contact with your *customers*. Believe me, they can help sometimes

[Anky]

Originally Posted by voxio

I'm afraid i don't agree with the "sell your business" stance.

Why don't you agree?

[DATARTIM]

I think the moment you don't feel you have time to fully dedicated yourself to the business or have lost any passion for it is the time to call it quits , I suggest selling your business , but don't concentrate on the price ( 10 months revenue is a fair price generally ) and find a good home for your customers .

[hekwu]

Originally Posted by jt2377

When do you call it quit? If your business is not growing and yet its not dying much. I have a full time job now and the hosting biz was started when i was in college and due to full time job. I don't have much time on my side biz and i also want to try something else and ditch the web hosting biz.

if you know you don't want to do it anymore. is it the time to close up shop and move on? how do you tell your existing customers and bow out gracefully?

I think it is time to stop once you can't provide the support (upgrades, customer support, etc) that your clients deserve. Better to stop on a positive than run the business in the ground. Plus, you will get more for it if your customers are not leaving in droves...

[dnswatch]

When to call it quit? You should be able to answer that yourself after thinking about it and what it's worth to you. Just remember that you have more important priorities since you first started back in school.

Are you able to provide the same amount of service to your existing clients?
Will the profit of the business be straining to you if you sold?

There's certainly nothing stopping you from starting again in the future, but if you did sell up and re-open a form of business again that you draw up a pretty detailed plan on how to expand the business in those times that your not doing so well.

There are a million ways to expand a business, you just need to know how.
How can you know how? Research!

Good luck with your future endeavours and please let us know what you decide.