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Hosting Discussion > Operating a Web Hosting Business > Web Hosting Business and Legal Issues > Starting in the business? Time to write a Business Plan !
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  Post #1 (permalink)   07-28-2006, 01:26 PM
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Location: Europa
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You are starting in the Webhosting business ?
You still wonder how you'll avoid the traps, how you won't forget anything, how you'll manage your money and how you'll be able

to drive effectively your business creation ?

The business plan will certainly be then your best friend to assist you during this period.

What is a business plan ?

As defined on Wikipedia:
"...A business plan is a summary of how a business owner, manager, or entrepreneur intends to organize an entrepreneurial endeavor and implement activities necessary and sufficient for the venture to succeed. It is a written explanation of the company's business model..."

In other words, the business plan is essentially a document designed to clarify the direction and goals of a business.

What makes a successful business plan ?

In order to reach your goal(s), you need to be well prepared.
A business plan doesn't have to be fancy. Often, it is as simple as a Word
document written to prove that your business will generate enough revenue to cover your expenses.
Despite all, it remains the most important tool of your business creation.
So, Take a deep breath, relax and take your time to write it.
Keep in mind these few guidelines and you'll turn your project into success:
  • Your business plan must contain a clear and concise writing. Write short sentences with one idea.
  • Illustrate your ability to make this business a success. It will help you as well to see your key points and weaknesses.
  • Show profitability. Otherwise, where would be the need to begin with this venture ?
  • Keep it flexible. The business plan is not really a finished document. Write it in an open manner which leaves room to accommodate new ideas and details as they occur during the course of your business.
  • Write your plan with a clear and logical structure.

Clear and logical structure.

As said previously, write your plan with a clear and logical structure. It will help you to keep a good overview on all your

project and find easily key informations when needed.

Below are the 10 key chapters from a typical business plan structure:
  1. Table of contents.
  2. Executive summary. This is a detailed summary of the business plan; essentially a condensed version of the business plan.
  3. Introduction. Where a general overview of the business, its activities, services and other details that you see fit to put in it!
  4. Outline of business. This is an outline of the businesses legal structure and corporate structure.
  5. Outline of services. This is an outline of the products or services that a business offers. This could include pricing and plan details for web hosts.
  6. Marketing. Here is an overview of the marketing strategies a business intends to use and would include details of your target market, where you plan to advertise etc.
  7. Human resources. This is an outline or detailed information regarding who you are going to employ such as support staff, sys admins etc. This section may also incorporate information on the management.
  8. Operational details. This is probably the most important component in a business plan. It outlines how the business intends to operate on a day-to-day basis. It could involve the software and systems used, etc.
  9. Financial details. This section could be as complex or simple as possible. A cash flow projection and budget will do.
  10. Conclusion - where everything is summarized again, highlighting your businesses vision or goals.

It's up to you know.

For people who are not natural writers, writing a business plan can be difficult at times. A great place to start is
by writing the executive summary first. The executive summary can serve as a mini business plan within itself.
Most importantly, make sure you include your goals and specific things you can do to achieve those goals. In some regard, your

business plan is a form of goal setting. Having goals helps you focus and keep on track, and when you look at them it helps you
remember the inspiration that caused you to start your business.

Usefull links.

You may find usefull informations concerning the business plan on the following websites:
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  Post #2 (permalink)   08-02-2006, 11:41 AM
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Join Date: Aug 2006
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Status: george7004 is offline
yeah.. writing a business plan helps alot.. you new hosts should try it.. it will help you out more than you think!

  Post #3 (permalink)   04-05-2007, 04:48 PM
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Join Date: Apr 2007
Posts: 77

Status: Dev4vip is offline
You can definitely sign up for a private label reseller account and start making extra income even if you have no plan in mind; however, if you are serious about the business and you want to make it a real job, you should develop some sort of business plan. It doesn't have to be a formal plan; after all you're not going to present it to the bank for a loan or anything. A page or two detailing the general direction will help a lot. Some things you will need to think about are your pricing, marketing strategy and operation costs. Itís important to develop a plan that will allow you to enjoy your business. If you don't enjoy it, your customers will feel it, and they won't be happy either.

Having plan for everything you do in your life is a good thing coz If you fail to plan it literally means that your plan to fail. So have a some sort of a plan and then shoot your target

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  Post #4 (permalink)   05-12-2007, 01:31 AM
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Join Date: Apr 2007
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Status: KiranHost is offline
A business plan is a MUST! Even though you might think you won't need it, you will. Without one you'll be a lost needle in the haystack.
KiranHost, LLC - Shared and Reseller Web Hosting Solutions
99.9% Uptime, cPanel, Site Builder
Host Unlimited Sites, PHP, Java, and more...
Instant Setup, and NO OVERSELLING!

  Post #5 (permalink)   06-06-2007, 09:46 AM
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Status: Keithb is offline
Any business needs a business plan, to guide them throughout their dealings. Try to stay on target and if it's not working, look for the alternatives. Don't let it go too far that you can't dig yourself out of a hole.

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