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  1. #1

    Location of new hosting business?

    Hello, I'm currently making a business plan to open up a new web hosting company. However I'm a bit stuck on which location to start hosting at.

    The 2 locations I am currently thinking of at the moment are either the US or the UK.
    Each have their advantages and disadvantages. One main one being that the US is a lot bigger and more people look for hosting the in US which would help me get clients. However UK Hosting(I think) would generate a better income because of hosting prices and I also live in the UK which would help with support to UK clients.

    What location do you think I should start at?

  2. #2
    Join Date
    Aug 2002
    Location
    Canada
    Posts
    315
    Why not support both? Start small with a server or vps in the US and UK. focus your marketing plan in the area you feel would do better in the short term and go from there.

  3. #3
    Join Date
    Dec 2007
    Posts
    612
    UK seems less over saturated then the US at the moment, but their aren't as many people looking for UK VPS as there are for US VPS

  4. #4
    Join Date
    Aug 2009
    Location
    UK
    Posts
    1,140
    Quote Originally Posted by SeanK View Post
    Why not support both? Start small with a server or vps in the US and UK. focus your marketing plan in the area you feel would do better in the short term and go from there.

    Yes I think this is a good idea. You can then allow your clients to choose which country their website is hosted in.
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  5. #5
    Hello,

    From your post, it seems like UK will be a better choice for you. You will have many benefits of hosting in UK than in US, like -
    • You can easily attract local customers. Sites hosted in UK will be faster for UK visitors.
    • Giving support to local clients will be much easier and faster, and there won't be much time zone differences.
    • You can also reach out local businesses and offer them your services.


    Also, as posted above, UK hosting market is definitely less saturated than US, and you have a better chance there.

    Hope this helps

    Regards

  6. #6
    Quote Originally Posted by Arania View Post
    Hello,

    From your post, it seems like UK will be a better choice for you. You will have many benefits of hosting in UK than in US, like -
    • You can easily attract local customers. Sites hosted in UK will be faster for UK visitors.
    • Giving support to local clients will be much easier and faster, and there won't be much time zone differences.
    • You can also reach out local businesses and offer them your services.


    Also, as posted above, UK hosting market is definitely less saturated than US, and you have a better chance there.

    Hope this helps

    Regards
    Agreed, seems really silly to offer US when you are going to have a massive time zone difference.

  7. #7
    Thanks for the response guys, I have decided to go for the UK option

  8. #8
    Join Date
    Dec 2005
    Posts
    3,110
    Targeting a market close to you is very important, at least to start with.

    Local advertisments & word of mouth are the best form of advertising. If you offer services to the UK and you are in the UK, you can also easily have physical access to your equipment should you choose to colocate it.

  9. #9
    I'm hoping to get a few clients by contacting local web developers to persuade their clients to host with me. Is that a good idea?

  10. #10
    Join Date
    Aug 2003
    Location
    Gods Own Country
    Posts
    892
    Quote Originally Posted by Sc00by22 View Post
    Hello, I'm currently making a business plan to open up a new web hosting company. However I'm a bit stuck on which location to start hosting at.

    The 2 locations I am currently thinking of at the moment are either the US or the UK.
    Each have their advantages and disadvantages. One main one being that the US is a lot bigger and more people look for hosting the in US which would help me get clients. However UK Hosting(I think) would generate a better income because of hosting prices and I also live in the UK which would help with support to UK clients.

    What location do you think I should start at?
    I would advice on UK to start with.
    Blessen Cherian
    Follow me on twitter.com/blessenonly
    Two decade in Web Hosting Industry

  11. #11
    Join Date
    Apr 2006
    Location
    United Kingdom
    Posts
    618
    Quote Originally Posted by Sc00by22 View Post
    I'm hoping to get a few clients by contacting local web developers to persuade their clients to host with me. Is that a good idea?
    That's a good idea, maybe even try offering them something in return.

  12. #12
    How would the developer host his clients? There is 3 ways I can think of at the moment.

    1) The developer purchases a Reseller package and manages the payments himself and just pays the host.
    2) The developer purchases a shared package for each client he gets.
    3) The developer points the client to a web host and lets the client do everything.

    Which would generally be the best option for them?

  13. #13
    Depends on the developer really.
    Try offer them all the options. That gives you the greatest chance on getting them on board

  14. #14
    Thanks

  15. #15
    initially start from UK for better management and support. expand as you feel expansion in your business.
    for packages, try to involve multiple features and prices, so user can easily choose whatever he likes

  16. #16
    Join Date
    Apr 2009
    Location
    OnTheWeb
    Posts
    2,397
    I must agree. Start with your local market first...then seek to venture across waters. It will be more beneficial to you and your company that way because you will be in a better position to provide support and monitor your business. Also, it will cost you less in terms of headache of different tax regimes and employee issues and maintenance costs to the servers
    If you're the smartest person in the room then you're in the wrong room

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