where do I start?

maggot05

maggot05

New member
hi,

in the near future I plan to create my own hosting company(as its something i wish to do) and seeing that you guys here have some knowledge with this, i wish to ask:

1. should I be a reseller or get a dedicated server?
2. if reselling is best, how much does it cost?
3. what things should i avoid when running my hosting biz?

this is all i can think of for now, but ill post back if i remember any other questions ;)

thanks :)
 
1. Start off with a reseller account then progress to a dedicated server once you have enough clients.

2. Reselling can be anwhere from $9 and above. Depends on if you want quality or not.

3. Avoid trying to attack the entire market. You will just get lost in the masses if you do not choose a healthy niche that is in need of hosting.

Ask away!
 
hmm well i thought of another one :)

i see hosts that offer items like web mastering, web design, programming,ect should i also try to do the same? i am good in some of those fields(except web design ;))

EDIT: just thought of anoth :)

should i get a credit card processor service or use paypal or both? or i guess what would be the best way to collect the order money?
 
yes, start off with a reseller account and make yourself on up.. Soon, when you are breaking even and have enough money to support a dedicated server, do so, but make sure that you know what you are doing, security wise and hardware wise.. build you company on support and good hardware and bandwidth.. Thats what does the trick
 
Hi maggot05,
Here are a couple of things to take care of before hand.
1. Create a business plan. This will be your roadmap.
2. Protect yourself by incorporating your business. This helps to reduce or eliminate personal liability, and your business name is protected so no one can steal it (depends where you are incorporated at)
3. Get a small business bank account.
4. Make sure you have some type of legal counsel available i.e. Have a lawyer to help you with contracts etc.
5. Get a merchant account, and this is not needed immediately since you can have people pay by cash,money order and\or by check. Eliminates processing fees, and you get all the money.
6. Prepare the content for your web site
7. Build a website
8. Register domain name
9. Get a reseller account using a strong provider.
10. Create business cards.
11. Promote your site to the market of your choice.

Best of luck in everything you do :)
-Bones
 
Definetly start off with a reseller, and stay on one until you can hire a system administrator for a dedicated. Thats when you should be upgrading to a dedicated, when you are making enough money to pay for the dedicated, and a system administrator, as well as other costs.
 
cool thanks guys, im liking all of these comments :)

Bones, how do i incorporate my business?

though i do plan to start with a reseller, though im looking for a good one, so far im thinking about going to the one my paid host has, i like their deal with the non-competition between me and them ;) and also their uptime.

i have another question, how low shouldi go on pricing? i see places that charge 2.99,4.99,6.99,ect which is best or is it a personal choice?

I thank you all for the great comments and wisdom.
 
well i plan to start small since i dont have that kind of $

having a lawyer might be nice once i get higher up on the scale but for just starting out i just need the basics(where to start, what to offer,ect) so far i just plan to be a reseller until I can get off on my own with my own servers.
 
oh i do have a very good question? should i run this hosting biz alone? currently that is my game plan but if thats a bad idea, please speak up b4 i choose that idea.

I like these suggestions you guys are giving out its all very helpful.
 
I would suggest getting a lawyer to write you up something good! If you are looking for a partner for $$ don't go into business. There is only one legal way of doing business and that is the right way!
 
ok, though i still might wait on the lawyer as i really am just starting out with nothing but knowledge ;)
 
Yes and knowledge can get you in trouble don't forget. Some of the brightest people out there still don't understand the whole acept of the "Law" what business laws there are etc...
 
whayt i was getting at was that i dont have that kind of money ;) lawyer cost an arm and a leg and i wish keep both of them ;)

EDIT: I have a quick question, i also have thought about starting out by working at an actual hosting place that is already up and running, now my question is, wouldi have to look onm the internet to find those jobs or would a newspaper have those listed?
 
You can either look on the net or talk directly with a data center located by you. That is the only two ways I can see this happening. They are not going to pay you to "Test" on their servers as I would put it. Also they will make you sign a NDA and a Non Competition Agreement which might state you can not open up a data center in a radious of 100 miles etc.. and you can not steal their clients and you can not give their client info out.

Lawyers do not cost an arm and a leg. Just gotta find a respected one and that can be hard to do.

One word of advice if you can't affrod it don't go into business. Start out small as a DBA than move on from there.

Disclaimer: I am not a lawyer and take this advice as you see fit
 
I'm actually a Law Student :)

DBAs can be acquired at your county courthouse through the County Clerk's office.

If you're looking into a partnership, do a little research first. You can have a Standard Partnership, or a LLP (Limited Libaility Partnership).

Before sharing any expenses, make sure to make a "partnership agreement" that covers every situation you can think of. You'll have to have it signed by both parties and notarized.

An attorney isn't really necessary. But, if you choose that route, make sure you have everything together BEFORE you go to the attorney. That will save you both time. And of course, time=money!
 
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