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06-12-2009, 03:40 PM #1Web Hosting Master
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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.
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06-12-2009, 04:07 PM #2Web Hosting Master
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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.█ Tailored VPS offers fully customizable VPS Hosting
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06-12-2009, 04:46 PM #3Web Hosting Master
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Depends what you want to sell.
Shared hosting? Reseller hosting? VPS hosting? Dedicated servers? Backup space?
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06-12-2009, 05:00 PM #4Invented the Internet
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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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06-12-2009, 05:04 PM #5Web Hosting Master
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06-12-2009, 06:00 PM #6Aaron Wendel
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06-12-2009, 06:05 PM #7Web Hosting Master
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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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06-12-2009, 06:31 PM #8Web Hosting Master
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Rent some servers and buy out a few small companies.
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06-12-2009, 06:42 PM #9Master of the Truth
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I would not suggest the hosting market, there is already enough of us.
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06-12-2009, 07:02 PM #10Web Hosting Master
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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.
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06-12-2009, 07:10 PM #11Master of the Truth
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06-12-2009, 07:31 PM #12Web Hosting Master
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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.
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06-12-2009, 07:34 PM #13Brian King of LLAMEDOS
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What would u do with $10k startup capital ??
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06-12-2009, 07:49 PM #14Web Hosting Master
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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!
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06-12-2009, 11:51 PM #15Web Hosting Master
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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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06-13-2009, 12:53 AM #16Web Hosting Master
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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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06-14-2009, 12:33 AM #17Not so experienced
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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
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06-14-2009, 12:38 AM #18Web Hosting Master
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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.
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06-15-2009, 11:37 AM #19Aspiring Evangelist
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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.
Lawrence
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06-15-2009, 11:48 AM #20New Member
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You can buy Dedicated server from thePlanet.com
become domain reseller
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06-15-2009, 01:38 PM #21Elite Webmaster
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06-16-2009, 05:48 PM #22Web Hosting Master
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Well thats not for me, i already have a setup , just trying to get a market feel.
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06-18-2009, 07:14 PM #23Web Hosting Master
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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.
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06-18-2009, 10:14 PM #24Web Hosting Master
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We are already into dedicated servers. So this is just a general question and not directly related to us.
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06-18-2009, 10:28 PM #25Premium Member
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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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