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Hosting Discussion > Operating a Web Hosting Business > Web Hosting Business and Legal Issues > Is this a good or a bad time to be in the web hosting business?
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  Post #1 (permalink)   09-29-2008, 02:29 PM
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Seeing that the American economy is hitting the worst crisis since the Great Depression, the money is losing value and the $700 billion rescue plan (so far) is failing to pass, my question is whether it is a good or a bad time (as ever) to venture in the web hosting business?

Certainly we'll hear different points of view. Somehow, in my mind, it seems unknown who really benefits more - bigger corporations or smaller startups... Bigger corporations will have difficulties borrowing, while smaller startups (most often funded by private money) might rethink their budgets altogether...

So what is your take on that?
 
 
 


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  Post #2 (permalink)   10-02-2008, 11:13 PM
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Well, I think small companies would have a better chance than bigger ones.


Small ones have less to deal with, as the bigger ones have to worry about most of their clients not paying, and most big companies have stocks and now there losing there value.
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  Post #3 (permalink)   10-03-2008, 02:25 PM
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But most big companies (which indirectly means financial success) are profitable and most have cash to reinvest, while smaller companies are struggling through building sufficient client-base and generating revenue - both take a lot of investments. I would say smaller companies are under way more pressure. Taking a business loan is practically impossible, and entrepreneurs still have other bills to pay to survive...

On the other hand, we have this feeling that your money in the bank is under even more risk than if you were to invest in a startup.
 
 
 


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  Post #4 (permalink)   10-05-2008, 07:46 PM
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I am sure web hosting will always have space to grow in business... There will always be people who need hosting for their site or online store.

Big companies usually already have greater responsibilty. They have got their credibility in the hosting industry. However, even one little mistake but vital can ruin their credibility
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  Post #5 (permalink)   10-06-2008, 09:30 PM
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I think at this point in history hosting businesses are pretty well insulated from these financial collapses.
Some of the more expensive hosts may be losing potential clients but in general when times are tough people look to increase their ability to make a profit.
Often this includes starting an online business or just setting up a website for promotional reasons.
In a weak economy the hosting business stays strong, at least for the moment.
One of the main reasons is supply and demand. Even though there seems to be thousands of little hosting companies out there competing there are far more people with a need or desire to be online. A small hosting company can work at a stricly local level and still do very well just like any other small business.
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  Post #6 (permalink)   10-09-2008, 03:50 PM
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Hi,

I think it's always better TO DO than NOT TO do something: if it's a web hosting business or any other business.

I remember there was a story about 2 missionaries who go to Africa for a mission. When they get there and see that people wear no shoes, one says:

- I won't live here, there's no one wearing shoes so I cannot open a shoe factory here.

While the other one says:

- It's just the right place and time to open a shoe factory, as no one has any shoe to wear

So think about it ...
 
 
 


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  Post #7 (permalink)   10-09-2008, 08:29 PM
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Warren Buffet said: "Be fearful when others are greedy. Be greedy when others are fearful."

So this could be a good time to expand...as long as you don't put yourself and your business so far out on a limb that you can't take some steps back if needed. Stick with what you know well (and do well). Build on those bases. Always keep learning. And if you know that you can do a thing well, provide a good offering...expand. Even if you can't make a ginormous splash, you'll be ahead of folks who are holding back, waiting to see, and who may not know how to deliver the services the way you do.

Everybody's freaked out right now. But people still have to have places to live. They still have to eat. They still have to have medical care (especially for chronic conditions like diabetes, heart conditions, epilepsy, and other far more noxious things.) Those things will still be true in one year...five years...ten years.
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  Post #8 (permalink)   10-16-2008, 09:51 AM
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My opinion its been bad for a while actually. I have been in business for 6 years and the last 2 the market has been over saturated for a while and its hard to get customers. Everyone has a website now and maintaining just current base is hard.
 
 
 


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  Post #9 (permalink)   10-23-2008, 12:25 PM
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I think it's a good time look at the financial services industry, that is scary
 
 
 


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  Post #10 (permalink)   10-23-2008, 08:19 PM
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I think that now is a very good time for web hosting. You see, many people are going to be afraid of the failing economy and thus, are going to want to do something to increase there income. You can push that angle-"use a website to gain extra income, ease your financial burden!".

The other thing to remember is that a web hosting business needs little in the way of resources-the costs are small for reselling, and you don't need office space, or other resources. I think this is a good time.
 
 
 


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  Post #11 (permalink)   10-24-2008, 05:48 AM
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Agree that the 700billion are useless at the moment, but you had to know that, the world market are playing with a lot of people. Everyone are playing a important. But I think the result will obviously being seen the following few month.

Keep on patient. Do whatever you can to continue support the market.
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  Post #12 (permalink)   10-25-2008, 02:24 PM
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Yes, all the markets are suffering right now because of the knock on affects from the US market. When the US cannot buy products from abroad, then the places they would have bought from suffer.

Supporting the market I'm not sure about. I don't think that it is prudent to suddenly start spending heaps right now, when we could be all penniless in a few months.
 
 
 


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  Post #13 (permalink)   10-26-2008, 12:52 AM
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usa is not the only county in india every country in the world has access to the internet so do not worry u can target any one in the world using the net
 
 
 


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  Post #14 (permalink)   10-29-2008, 01:08 PM
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Yes, this is an important consideration, however. The problem with the economy is so widespread currently that I am not sure that anywhere is going to be safe in the long term.

This is spreading like a bad flu. Widespread exposure is essential to pick up whatever sales you can find.
 
 
 


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  Post #15 (permalink)   10-29-2008, 02:37 PM
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I could fully see why many wonder about the USD dropping like it has and wondering if its worth starting up any company let alone one for web hosting which we can all vouch has been over saturtated for more than the past two years. Every Tom, Dick, Jane & Pattie have gotten there hands on something and trying to make it into something better. We are always going to see compitions same thing goes with those insane SEO places that gaurentee SEO changes in the first week.

If you dive in, dont do it blindfolded by any means. If we do not continue to grow as a nation/world whatever we are all going to be screwed at some point. There will always been a need for hosting companies, but we need good ones not those that will only be around for 6 months and then gone.
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