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  1. #1
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    Lightbulb What would u do with $10k startup capital ??

    the title says it all .
    1. How would u distribute ur investment.
    2. When will u start taking profits out of ur business.
    3. How much would u reinvest in ur business.

    Looking for expert & experienced opinions.

  2. #2
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    Here is what I would do:

    1. I would start with finding a reliable datacenter near by my house. Mainly so I can service the servers easily.
    2. Then I would purchase some Dell, IBM, or HP servers.
    3. Find a close friend to help with support. It is better to have a trust-worthy partner.
    4. After getting all the servers setup I would then focus on marketing.

    That is what I would do. The rest of the capital would be kept to keep the company alive long enough for clients to start ordering. About 3-6 months.
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  3. #3
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    Depends what you want to sell.

    Shared hosting? Reseller hosting? VPS hosting? Dedicated servers? Backup space?
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  4. #4
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    First, I would fix the "y" and "r" on my keyboard.

    Then, I would figure out my target market and plan from there. If its shared hosting, I would purchase a solid batch of customer accounts from another host. If dedicated servers, probably focus on advertising.

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  5. #5
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    Quote Originally Posted by AH-Tina View Post
    First, I would fix the "y" and "r" on my keyboard.


    10 characters
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  6. #6
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    Quote Originally Posted by IPStrada LLC View Post
    the title says it all .
    1. How would u distribute ur investment.
    2. When will u start taking profits out of ur business.
    3. How much would u reinvest in ur business.

    Looking for expert & experienced opinions.
    I would open a hot dog stand. Anything I didn't spend on hot dogs would be mine to keep. it would be a complete Utopia.

    I would call it Aaron's Weiners. With the S very small so you almost couldn't see it.

    Oh well.... I can dream....
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  7. #7
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    I would buy a reseller and use as little of it as possible and only for emergencys
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  8. #8
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    Rent some servers and buy out a few small companies.
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  9. #9
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  10. #10
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    perosnally i think the market is too big to get saturated soo fast, so i still markets are easy enough. You need to discover that niche for urself.

  11. #11
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    Quote Originally Posted by IPStrada LLC View Post
    perosnally i think the market is too big to get saturated soo fast, so i still markets are easy enough. You need to discover that niche for urself.
    OH yeah? You havn't been around much in the hosting industry then.

    Let me know how long that 10k lasts you.

  12. #12
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    well personally, $10k for me doest not last more than a month. But from a business perspective i can survive upto 7 months.

  13. #13
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    What would u do with $10k startup capital ??

    Invest it in 'ur' education
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  14. #14
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    I agree with some of the folks in this thread - the hosting industry is a bit over saturated at the moment and unless you can define your niche and have an action plan it is going to be a struggle for sure. Hosting isn't a 9-5, M-F job, it is a 24x7 on call job and can get stressful at times. If you're up for the ride then go for it.

    Personally if I had $10K I would invest it in some sort of Financial plan to increase this or use it on a Business I know for sure will work.

    Good luck!

  15. #15
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    $10k is roughly what I started << my web hosting company >> with. I spent some wisely (banner ad campaigns) and some not so wisely (customized pens and post its with our logo ) so far. I've not spent it all yet though, and am looking to dump the rest into local advertising. It all depends on your motivation though, and how much risk you're ok with. 0 risk and 0 motivation to give effort into obtaining clients, your best bet would be to just buyout a company already making ~$10k. On the other hand, if you're a go getter and a half, spend a few hundred on a chamber of commerce listing of local businesses in your area and get to calling people. Order a few thousand glossy laminated flyers and get out there and tell everyone that they can click 3 clicks and have a wordpress blog (you'd be amazed at the teens that WANT a blog, but think they have to know 10 coding languages to get their own site running). I'm even renting a booth at a street festival this coming weekend (tomorrow, I should be sleeping), and taking my laptops/net cards and letting people play with my sitebuilder on a demo account just to show how easy things are. Chances are people will just check their myspace, but at least I'll get to be cool and have my own booth at the street festival.

    I strayed a little off topic, but long story short, there are TONS of ways to spend the money. I can give you 2 priceless pieces of advice that matter more than all else though.

    1) Don't get discouraged because something doesn't make you money right away. Some forms of advertising don't "pay off" for a few months. That's ok. Just make sure you've got money to cover costs a bit during the first few "poor months".

    2.) Find a way to track what ads make money. If you run one ad in the paper, one on an ad online, and another via flyers, use different coupon codes or something for each. If you're advertising in 20 different places, and only 1 is making you money in the long run, you need a way to know which is the good one.

    That's all I can think of for now. Best of luck if this is actually a real situation and the topic wasn't just "what if".
    Last edited by writespeak; 06-21-2009 at 08:45 PM.
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  16. #16
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    I'm advertising on radio stations. It's working well for me, but I'm geared only towards the local market. It's amazing the amount of people in my area that want a site and were just waiting to hear a number on the radio to call. Simple
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  17. #17
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    Quote Originally Posted by Internet54 View Post
    I'm advertising on radio stations. It's working well for me, but I'm geared only towards the local market. It's amazing the amount of people in my area that want a site and were just waiting to hear a number on the radio to call. Simple
    What i could suggest is you go around to local businesses and ask if they have a website (team up with a local designer if you don't have one) and you could offer a website made + hosting..And it doesn't even have to be cheap. Because for a business another $50 a month isn't much.

    Bhavic

  18. #18
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    Yep, I haven't had the need to go door to door yet as business is coming in quite smoothly now. My business plan is all about the monthly charge. I do an initial fee up front for design costs and then charge monthly for SEO and maintenance.

  19. #19
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    I agree with some people here. First define your niche or what you want to do exactly.

    I don't see a problem starting out with reseller until you have a handle on the industry, your niche and what you want to do with the business.

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  20. #20
    You can buy Dedicated server from thePlanet.com
    become domain reseller

  21. #21
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    Quote Originally Posted by WII-Aaron View Post
    I would open a hot dog stand. Anything I didn't spend on hot dogs would be mine to keep. it would be a complete Utopia.

    I would call it Aaron's Weiners. With the S very small so you almost couldn't see it.

    Oh well.... I can dream....
    Hehe, you sound like my father 10 years ago. He wanted a mobile hotdog stand and talked about it all the time. He opened a clothing store instead. Yes, I know he's weird.
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  22. #22
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    Well thats not for me, i already have a setup , just trying to get a market feel.

  23. #23
    Buy a few of the smaller companies, you won't survive in the industry by putting up a few banner ads with a new business.

  24. #24
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    We are already into dedicated servers. So this is just a general question and not directly related to us.

  25. #25
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    IPStrada,

    I can see you are looking for help and some of us are willing to help. I believe the reason you're getting only a few good replies is because you need to be more specific. Start by telling us what stage you're at. Did you find $10K under your mattress or have you formed a business plan and got stuck at some point?

    It's true that this is a saturated industry and that a lot of these small start-ups fail. They all fail for similar reasons and I think you need to make sure that you are fully committed to this business before you start anything. Most of the time, people think big and are not patient enough to wait for the momentum to build up.

    What kind of background do you have? Do you have a business degree or a technical degree?

    Try telling us a little more about yourself and what your goals are other than "when can I take money out" because that doesn't sound like you're in it for the long run but more like you're looking for a quick buck; where I don't think anybody can help you out because it's unrealistic.

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  26. #26
    Firstly i would invest in a few smaller hosting companys Such as shared-reseller-vps services. Let them grow, while getting a team together to manage them. and maybe invest in new servers that would be colo so you know you own your hardware

    Other options for starting with 10k..
    I would be looking at finding a vert attractive name/brand for your company
    I would then Set out your goals for the company as in what you will be offering to clients Shared reseller dedi etc
    Once you have them 2 set i would then look into finding a professional ( and i mean a very good) webdesigner to hook you up with a top notch site to attact people

    Along with those you will have the base for your busines.
    Now you should either Look into renting dedicated servers or even owning your own to start with and put them into a dc close to you.

    Now with all that you are practicaly ready to start.

    I would love to have 10k to kick my company off i have alot of good idea's

  27. #27
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    Quote Originally Posted by IPStrada LLC View Post
    We are already into dedicated servers. So this is just a general question and not directly related to us.
    By 'General' do you mean Hyperthetical ?
    If so, then maybe this thread should be in the lounge ?
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  28. #28
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    I'd invest in a single server and focus on application hosting and support/training for a particular open source project that I found useful and compelling. Then I'd be active where their community hangs out (forums, Twitter, confs).

    I'd look for the middle and upper end, rather than looking for liability to hundreds of $5/mo sites.

    It really depends on where your experience and passions are.
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  29. #29
    Quote Originally Posted by AH-Tina View Post
    First, I would fix the "y" and "r" on my keyboard.

    Then, I would figure out my target market and plan from there. If its shared hosting, I would purchase a solid batch of customer accounts from another host. If dedicated servers, probably focus on advertising.

    --Tina
    I just have 1 question,

    How and where could I possibly do something like this?

  30. #30
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    Quote Originally Posted by Brian-de-vie View Post
    What would u do with $10k startup capital ??

    Invest it in 'ur' education
    I would attempt to leverage it for additional capital to opena car wash.
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  31. #31
    If you are limited to a 10K start up capital, you might want to stick to your local market. Try offering web-design + hosting packages. There is a lot of profit here. If you cant do web design try hiring a free lancer.

  32. #32
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    The first thing I would do is not touch the 10k and figure out a soild business plan.

    From there once I knew my target market I would find a way to set myself apart from the other thousands of us hosts.

    From there I would start seeking a small hosting company who is looking to sell who's clients fit into my business model.

    From there I would start targeting my local area for customers, I don't believe without a huge bankroll it is very easy to make it only advertising on the net. I would utilize the free available options to advertise on the net and then dump some money into local advertising.

    Also as others said web design is a very nice offering in addition to web hosting.

  33. Isn't it obvious that you should invest the 10 000 dollars in lotto 649?

    Without joking i would say to first craft your business plan if you have not already, than search for a datacenter close by, or find a very reliable provider. I would make sure to have a good chunk of the money saved for advertising, as that is the only major factor that will separate you from the competition. The rest should be invested in building a solid framework for your website.

  34. #34
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    Well the topic says "What would U do" and not i do ;-)
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  35. #35
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    1. Get a llc
    2. get a design
    3. get a reseller
    4. advertise locally
    thats under 1k the rest I would use as a coushin or whatever you call it.
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  36. #36
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    1. Offer 1 year free to my local market
    2. Wait 12 months
    3. $$profit$$

  37. #37
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    I would buy two median-level server, then be broke??

    10K is not too much to dream about if you are going to own your own equipment. It would get you started in a nice rental based biz. Buying 3 data centers worth of equipment, I can blow through 10K in service contract renewals a month. We're buying two replacement web server this week that will total more than that...just to put things in perspective.

    Best bet with that is to rent dedicated services, add on as you need, set pricing correctly, and grow that money until you can afford to buy equipment. Maybe look at buying out an established biz? Either of those would get you started.
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  38. #38
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    Quote Originally Posted by mugo View Post
    I would buy two median-level server, then be broke??

    10K is not too much to dream about if you are going to own your own equipment. It would get you started in a nice rental based biz. Buying 3 data centers worth of equipment, I can blow through 10K in service contract renewals a month. We're buying two replacement web server this week that will total more than that...just to put things in perspective.

    Best bet with that is to rent dedicated services, add on as you need, set pricing correctly, and grow that money until you can afford to buy equipment. Maybe look at buying out an established biz? Either of those would get you started.
    Not true at all, you could easily go on the WHT forums and find tons of high end servers for $600-$1200...buy them, co-lo, and advertise your services.

    I would recommend banner ad's on major review websites, just because they seem to have the highest rankings in the search engines and clients are obviously looking through them.

    Good Luck
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  39. #39
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    Quote Originally Posted by Aptohosting View Post
    Not true at all, you could easily go on the WHT forums and find tons of high end servers for $600-$1200...buy them, co-lo, and advertise your services.

    I would recommend banner ad's on major review websites, just because they seem to have the highest rankings in the search engines and clients are obviously looking through them.

    Good Luck
    The point is, 10K ain't gonna go far in the purchasing equipment route. So you get a few servers 2, 10...whatever.. Then you have to use what's left of that 10K to co-locate, software license, switches (you're gonna network them, right?)......oh, and bandwidth? Might need to connect them to the 'net also.
    Power. Let's not forget power, the most expensive commodity in a DC. Servers don't work to well without juice. Parts...think any components will go out during your co-lo term? Priced a SAS drive lately? Better set aside a grand or more for a few things biting the dust.
    Now, do we have anything left for this advertising budget? Not much. We may have to spend that on UPSs. DC's have generators, but that 10 second switch-over is a *killer* on servers. And we'll have to low ball backup now, because we are almost broke.

    Usual co-lo term? 2 years. On the hook. What if the startup doesn't do too well? Contracts don't like sob stories. They like term completion.
    Very, very chancy use of investment, at best. One bad stroke of luck, kiss that $$ goodbye.

    Equipment and co-lo expenses will chew through that money like Donald Trump's ex-wives.
    Last edited by mugo; 08-22-2009 at 03:29 AM.
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  40. #40
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    Quote Originally Posted by mugo View Post
    The point is, 10K ain't gonna go far in the purchasing equipment route. So you get a few servers 2, 10...whatever.. Then you have to use what's left of that 10K to co-locate, software license, switches (you're gonna network them, right?)......oh, and bandwidth? Might need to connect them to the 'net also.

    When you are starting off you do not need 10 servers.. here is the break down:

    2 Decent Servers- $1500
    Co-lo costs- $2400/year
    Extra Parts- $300/year
    Marketing Expenses- $2000/year
    Website Development- $1500 one time
    Misc Expenses- Save the remaining $2300





    Power. Let's not forget power, the most expensive commodity in a DC. Servers don't work to well without juice. Parts...think any components will go out during your co-lo term? Priced a SAS drive lately? Better set aside a grand or more for a few things biting the dust.
    Now, do we have anything left for this advertising budget? Not much. We may have to spend that on UPSs. DC's have generators, but that 10 second switch-over is a *killer* on servers. And we'll have to low ball backup now, because we are almost broke.

    For example host dime co-lo, you do not need a long term contract, the "power" costs are included in the managed co-lo fee. He is not starting his own data center, he doesn't need to buy the UPS's..Any decent datacenter will have generators and redundant power.


    Bottom line if you are not doing well after a year, then you are not doing something right.

    Usual co-lo term? 2 years. On the hook. What if the startup doesn't do too well? Contracts don't like sob stories. They like term completion.
    Very, very chancy use of investment, at best. One bad stroke of luck, kiss that $$ goodbye.

    Equipment and co-lo expenses will chew through that money like Donald Trump's ex-wives.
    No, you can definitely get it set up in the first year..assuming you do things right and start accumulating clients.
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