Considering that this era has proven to be a boom for web hosting businesses, many people out there now intend to set their foot into in this field. However, not everyone has what it takes to establish a successful web hosting business. Do you? Answer these simple questions given below to yourself and you will know whether this business is adequate for you or not.
1) Are you a legal adult?
If you are under eighteen years old, you might not be legally eligible to sign online contracts, especially when it concerns web hosts. We hate to break it to you but if you are not legally an adult in your country yet, you cannot start your own web hosting business for now. However, keep up your determination and give a look into it again when you’re old enough. Meanwhile, maybe you could set up your own lemonade stall!
2) Can you manage your time?
Managing such a business can be way more time consuming than what you would have imagined. Before getting into it, make sure to ask yourself if you can take out enough time for it or not. Either you or any of your team members needs to be available throughout the day, especially for customer support service. Since there already numerous companies offering quality hosting plans, a potential client is likely to make a purchase after asking several questions. If you are unable to answer these questions timely, you might be losing clients. Consider this as a full-time job.
3) Will you be hiring employees?
You need to plan out everything ahead of time. You will need human resource not just for customer support but also for marketing or other technical procedures. Can you do this all on your own or do you think you will have to hire other people? If it is the latter, can you afford such a financial investment at this point? If not, then maybe you could also consider dedicated server hosting. This might help you cut out the human resource costs.
4) What type of hosting plans would be the best for you?
From the various types of hosting plans available now, there are only a few ones that would help you build up a successful web hosting business from scratch. You need to figure out which one would work out the best for you. Given below are brief notes about some of these hosting types:
Dedicated Server Hosting:
Here, the entire responsibility of troubleshooting and maintenance is upon the data center, which also owns and operates the equipment. You, as a user can utilize all resources of a service machine. You will have fun control over its usage.
Virtual Private Server (VPS) Hosting:
This particular type can be referred to as a virtual slice from a huge main server node. This main server node is usually a dedicated server that has been divided into multiple virtual environments. Although VPS accounts are usually for development purposes, they can also be used to become a reseller.
Reseller hosting is known to be the most convenient and economical method for initiating a hosting business. Using a single control panel, a user could tackle numerous clients all together and also make updates/changes into their services.
Colocation Servers Hosting:
This type of hosting can prove to be highly beneficial if a user already owns a server and has enough knowledge regarding server management to run his or her machine. In such as case, a user’s server is stored within a safe data center. Here, security, back-up generators, fire protection, and bandwidth, all are better than what would be available at a home or usual office.
Make sure you also keep your budget in mind before making a decision regarding hosting plans.
- What host will you be using?
Unless you have your own equipment and data center, you would require finding a great host for beginning your online business. Apart from simply a great reputation, you should make sure you go for a host that offers 24/7 efficient customer support. It is always ideal to opt for a host, which possesses its own data center as well as hardware and has full command over them.
- What hosting technology would you require?
There are two major hosting technologies available in the market currently: Windows and Linux. Although assumed that these can only be used on their respective operating system, it is not true. Windows hosting could be easily used on a Linux computer while Linux hosting can easily be used on a Windows computer as well.
Both of these have different advantages. For instance, Windows has proven to be more adequate for websites, which hold specific applications such as Plesk or MSSQL. You should only make choice depending on your own requirements.
- How much will you charge your clients for your plans?
When making decisions regarding setting prices for your plans, make sure you do a thorough research and evaluate your competitors’ offers. There are thousands of hosts that offer plans in varying price ranges, depending on the features they provide in each plan. Make comparisons between the features you and your competitors are offering and then decide on a price. Being a new hosting company, you are not suggested to set very high prices in the beginning.
- How will your website appear?
Building up a distinct website from your competitors will give you an edge. Creative templates and an overall professional appearance will help you attract more potential clients and convince them to read your offers.
- Do you have an advertising strategy?
Creativity is the key here. Considering how there are already thousands of companies doing the same job, you need to make sure your hosting company stands out and leaves a mark. Devise good marketing strategies and plan out what advertising mediums would you be using (eg: Google adwords, local advertising etc).
- How will you manage e-commerce?
In this era, it would be out-dated of you to expect payments via cheques or so. In order to have timely payments and smooth transactions, you need to find a e-billing solution for your business. Software solutions such as the Web Host Manager Complete Solution (WHMCS) can make these procedures easier.
So, do you still think you have what it takes to be successful in this business?