Web Hosting Talk : Web Hosting Main Forums : Dedicated Server : Big Budget - Hosting Suggestions?

[AC88]

I'm planning on starting a large business for hosting, local web design services, and computing. I know many of you own your own hosting companies and I'll just be another competitor soon to hit the market - this might cloud your judgment about helping me out, but me and a few friends have decided to seriously give this thought. With starting funds in excess of $100,000 USD, would it be better to merge with a smaller, already known company or to begin a new company from scratch? I have about 4 people helping financially. Thanks

[Ryan - HostATree]

If I had $100,000 and you want to get into web hosting as your only option I would take over an all ready running company with a proven track record.

Doing that along saves you possibility of failure right off since they already did the hard part, getting the company up and running...

[XENnode]

Originally Posted by Ryan - HostATree

If I had $100,000 and you want to get into web hosting as your only option I would take over an all ready running company with a proven track record.

Doing that along saves you possibility of failure right off since they already did the hard part, getting the company up and running...

That doesn't seem like a bad idea.

Although, you'd need to have experience in running a medium to large size business, especially in the field of hosting/computing. You will also need to keep up the reputation that company has built. If you fail to do so then it would be even worse than starting new and failing.

Do you and your friends have previous experience in the field?

[AC88]

Originally Posted by XENnode

That doesn't seem like a bad idea.

Although, you'd need to have experience in running a medium to large size business, especially in the field of hosting/computing. You will also need to keep up the reputation that company has built. If you fail to do so then it would be even worse than starting new and failing.

Do you and your friends have previous experience in the field?

We are all extremely talented web designers who have saved up over the years for a chance to eventually venture out into possible business opportunities. As for hosting, we might not be professionals, but I believe managed hosting might fit best. Don't get me wrong, we are all experienced computer users, just not experienced in the field of direct hosting.

Taking over a small sized company seems like a good idea, although it might be harder than it sounds. Well, I gave it a shot.. I usually don't post on forums, but my roommates and I don't know where to begin - the plan seems great, the funds are there, now it's time to find a launch point and work from there.

[XENnode]

Have you considered starting out small and seeing how it goes?

If you invest a small amount of money to start a smaller hosting company and grow over time, you'll gain the necessary experience and customers to build a reputable company. You wouldn't want to pour all of that money into a company to soon find that it all went drastically wrong.

My suggestion to those who wish to start a hosting business without much prior experience is to start small, and build from the ground up. That's how most of the big companies started out.

[keserhosting]

Well said XENnode, you have a sound financial background, so either you takeover a profitable company, or if you want to start from the scratch - you should know the best way for advertising the company.

If you use 50% of your finance to takeover and other 50% to do advertisements - that would definitely be a good option.

Best of luck for your new venture.

[cresci]

Or you could also acquire more than one successful small venture with cash flow issues or investment capital needs, and buy them, merging them into a big empire?

[Lewcy]

If you have $100,000 you will make more putting it in a bank than you would starting anything in hosting!

The age old saying of if you have got money you can make money applies but dont go crazy with spending, its all about controlling costs and developeing the business wisely - make sure you have a plan. Make sure you understand why you want to do what you are doing, is it for the money, the perceived benefits of being your own boss, the experience? Starting your own business is not an easy option.

Ask yourself whether you really want to get into hosting - you have a lot to loose! Web design however is very lucrative if you can build up a local customer base.

Best of luck with it.

[continuation]

Originally Posted by AC88

We are all extremely talented web designers who have saved up over the years for a chance to eventually venture out into possible business opportunities. As for hosting, we might not be professionals, but I believe managed hosting might fit best. Don't get me wrong, we are all experienced computer users, just not experienced in the field of direct hosting.

Taking over a small sized company seems like a good idea, although it might be harder than it sounds. Well, I gave it a shot.. I usually don't post on forums, but my roommates and I don't know where to begin - the plan seems great, the funds are there, now it's time to find a launch point and work from there.

Your backgrounds are all in web design, why not start a firm specialized in web design?

If none of you are experienced in sys admin, starting a hosting firm might not be a good idea. If your servers crashed at 3am, who's going to fix it? Can you deal with a security breach? a DDoS? If a server has an iostat that's out of whack, can you fix it? What about a kernel panic?

[AC88]

Originally Posted by continuation

Your backgrounds are all in web design, why not start a firm specialized in web design?

If none of you are experienced in sys admin, starting a hosting firm might not be a good idea. If your servers crashed at 3am, who's going to fix it? Can you deal with a security breach? a DDoS? If a server has an iostat that's out of whack, can you fix it? What about a kernel panic?

Good point. That, is why we are considering a managed solution. We would like to integrate a web design and hosting company - this way we can create the desired web site, upload onto our own hosting servers, and complete the "entire package" for the customer. The idea doesn't sound too bad, but with our lack of hosting experience it might take more work.

[CKGroup]

Originally Posted by AC88

Good point. That, is why we are considering a managed solution. We would like to integrate a web design and hosting company - this way we can create the desired web site, upload onto our own hosting servers, and complete the "entire package" for the customer. The idea doesn't sound too bad, but with our lack of hosting experience it might take more work.

With the amount you guys have it would be good to take over a small comapny but known for the good as the others said and then hire server management team along would be best