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  Post #1 (permalink)   04-06-2012, 07:34 PM
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Hi,

I am Randall Cooper, I am in the middle of a start up web hosting company and I am looking for an investor/ silent partner to help me build my web host for a few months.

Currently my host is selling Shared, Resellers, and reselling VPS servers, currently I have no clients but only launched a few weeks ago. I am looking to get a investor/silent partner to pay for the server and other tools I am using to develop this web host.

The cost a month is about $41 dollars and thats for VPS, WHMCS, Softaculous. I would like for someone to pay the $41 a month for a few months until I am able to get enough clients to pay for it self then the investor will be paid back in full. I am looking for short time investor but if your interested in staying on I dont mind. Backup cash is nice.

Please Pm me for more details if you have questions or are interested.
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  Post #2 (permalink)   04-07-2012, 12:40 PM
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You will need to provide a solid background to get anyone to pay your server fees.
why start if you could not afford the server costs. every host would have been in the same situation when they started until they gained a clientbase.

the best was to start webhosting is not to start straight away with a VPS if you have no clients.

First get a reseller account and offer cpanel shared hosting and then after you get a few clients upgrade to a master reseller account and then when you have enough clients then get a VPS.

This way you have a solid clientbase that will cover the cost of your server etc.
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  Post #3 (permalink)   04-07-2012, 07:52 PM
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Thanks for your kind words, But to compete with other hosting (new and Established) you have to have plans that work. To make them work on reseller account I would have to over sale the space in some way shape or form. I didnt want to do that so I opted for a larger vps.

I'm not looking for someone to pay my hosting bill all together, I am looking for someone who will invest to help me get advertisements on websites and maybe some adword campaigns up.

If they could/would pay for everything for a few months that would be nice, But not really wanting to take the freebie street.
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  Post #4 (permalink)   04-07-2012, 11:29 PM
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The OP has the right to seek investors/partners on any terms that he wishes.

What the user needs to define, however, is the structure of said partnership.

Hostix, you would probably have much better chances of finding proper backers, if any, if you outline the investment structure, where this investment will take you (essentially, how and what the money will be spent on), projected revenue, the repayment schedule and/or what the investor receives in return (commonly a share in the business, but it can also be a simple interest, ex, 10%, 20% annually, etc). Pitching the idea that you'd just repay the money when you are making money (with or without interest?) is not, in my personal opinion, a very attractive notion for an investor.
 
 
 


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  Post #5 (permalink)   04-08-2012, 02:27 AM
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Quote:
Originally Posted by Artashes View Post
The OP has the right to seek investors/partners on any terms that he wishes.

What the user needs to define, however, is the structure of said partnership.

Hostix, you would probably have much better chances of finding proper backers, if any, if you outline the investment structure, where this investment will take you (essentially, how and what the money will be spent on), projected revenue, the repayment schedule and/or what the investor receives in return (commonly a share in the business, but it can also be a simple interest, ex, 10%, 20% annually, etc). Pitching the idea that you'd just repay the money when you are making money (with or without interest?) is not, in my personal opinion, a very attractive notion for an investor.
true, but the way the OPs post read is that he wants someone to pay all his server etc. fees and then when he gets enough clients to cover the server costs they will get their money back.

so say someone does this and it takes 3 months to get enough clients to cover the costs.

investor pays 3 x $41 = $123

in 3 months he manages to get clients on plans worth $45 which is enough to cover the server, so hows he going to keep his word to pay back the investor his $123 as he states

Quote:
I would like for someone to pay the $41 a month for a few months until I am able to get enough clients to pay for it self then the investor will be paid back in full.
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  Post #6 (permalink)   04-08-2012, 06:57 AM
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Return payments would be in discussion with the specific investor if I found one. I know they want more repayment then just heres your money. But I was going to let them and I discuss on how that would be.
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  Post #7 (permalink)   04-08-2012, 07:07 AM
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Quote:
Originally Posted by Hostix View Post
Return payments would be in discussion with the specific investor if I found one. I know they want more repayment then just heres your money. But I was going to let them and I discuss on how that would be.
but as Artashes states you need to provide more info here along with "the structure of said partnership"
just saying you need someone to pay your $41 fees for a few month and then when you get clients to cover this cost they will get all their money back.

as i showed, over a 3 month period just covering the cost of the server will not generate the money to payback any investor, also any investor will need something in return which you dont mention
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  Post #8 (permalink)   04-08-2012, 07:12 AM
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EasyHostMedia, I know and I am writing something for that as we speak and on how details. I thank both of you for all the help and pointing out where I need to improve.
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  Post #9 (permalink)   04-08-2012, 08:34 AM
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Speak to doug @ http://yipfolio.com/ he has helped me out in the past.

He is a very very good guy and would look at helping you.
For the sake of $41 per month, it would be a worthless venture for investments, a loan would be a lot better.
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  Post #10 (permalink)   04-08-2012, 12:41 PM
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In every investment that I make, I require access to the business plan. If you have a solid plan in place and you have things structured for payouts etc, I know a handful of people that might be interested. That being said, needing an investor for such a small amount is not likely going to generate much traffic.

Put a solid business plan together, the expectations over the next 3, 6 and 12 months, the return on payments, etc. As a SILENT investor, I'd need all that information up front, along with what you've already done and why there are no customers using the service yet.

I'm not slamming you, just trying to help guide you in what *I* would need as an investor.
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  Post #11 (permalink)   04-09-2012, 07:44 AM
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Thanks for all your help guys when i get a business plan wrote I will start asking again. I have allot to write first.
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  Post #12 (permalink)   04-09-2012, 10:05 AM
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Quote:
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Thanks for all your help guys when i get a business plan wrote I will start asking again. I have allot to write first.
Indeed, I hope you enjoy writing!

I was considering going to a thing like dragons den, and the paper work required is immense.

Investors wan't every little detail.

Good luck and I hope it works out!
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  Post #13 (permalink)   04-09-2012, 12:47 PM
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Quote:
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Thanks for all your help guys when i get a business plan wrote I will start asking again. I have allot to write first.
Writing a business plan in itself is a grand learning experience. It might also provide you with some surprising data that you haven't thought of previously.

Best of luck!
 
 
 


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  Post #14 (permalink)   04-22-2012, 09:58 PM
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We're talking about peanuts here from an investor perspective. The work and effort to read your business plan, monitor your business, pay the bills, etc. is not worth an investor's time if we're talking $123...even if the return was 200%.

You are not offering any collateral nor have you mentioned any track record in hosting. Personally, I'd be very leery of someone who wants less than $200-300 to start a business. Get a part-time job at $10/hour and in a month you can make enough to fund your business for six months. Sell some things you own. Borrow it from friends/family. Why bother with an investor?

$41/month is suspiciously low, btw. First, I suspect you're not including the various startup costs - e.g., web site design, a business license, etc. Second, I'm guessing you're not planning any advertising or marketing expense. Finally, what are you getting for $41/month? Not a VPS - $15 for WHMCS/month + $15 for cPanel/month + $2 for Fantastico = not much left over for a server. Perhaps you're a pure reseller.

BTW, investors are either going to want collateral + a percent return (i.e., you guarantee with a bank account, mortgage, etc. that they can claim if you don't pay 20-30% return), or they want a chunk of the business - a big chunk. Think 50% ownership. Or 80% ownership. After all, they're putting in the money - you're just some guy with an idea, and ideas are a dime a dozen.

Sorry if I sound harsh - don't mean to be. My advice is to spend a little time and raise the startup money yourself.
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  Post #15 (permalink)   04-23-2012, 02:56 AM
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What you are looking for is seed capitol, small scale seed cap can yield 15-50k and generally there's non-profit seed cap firms in most cites either run by community leaders or larger investors.

Business Plan + Incorporation, any entity less of a C-Corp is likely not going to fly with any legit investment large or small. (c-corp will likely cost 100ish bucks for a charter depending on state, assuming you are US)

I may have some example startup business plans you can check out if you are interested, and if I can find them =)
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