Starting a hosting company

[jarland]

My advice, to someone who truly has the necessary skills to pull it off:


1. Register as sole proprietor (get an LLC when you know you can sell, until then that's capital better spent elsewhere)


2. Rent smart. No one cares about hardware if the network is terrible, and this is too often the corner people cut. No one wants 900mb/s IO if they can't even host a website. Take your time, do not rush this. If everyone you ask tells you that your choice is terrible and you're going to regret it, don't be like me and do it anyway....FDC Denver.

 

[Shados]

What I'm thinking here is:


VPS w/ cPanel and WHMCS (Might use eleven2 reseller with free whmcs to save money for now - if eleven2: $19.99, if vps with cpanel and whmcs, rougly $30)


Dedicated Server(e3-1270v2, 32gb ram, /26, 4x 500gb ssd OR 4x 2tb (same price), 1gbit port) : $120 (+ a discount I've been offered if I sign a 3 month contract it brings it down to $89/mo)


Domain: Already have one thats been idling and expires in 2015


Solus: Don't intend to use. I created my own panel.

Who quoted you that?

 

[Coastercraze]

Here's a quick guide which may help:

- Research

- Identify

- Plan

- Build

- Finesse

- Launch

Research - Take a look at everything from potential market(s), software, providers, etc. Make a list of potential places / markets / and providers you'd like to be in / target. Also keep track of any desired software (ex: SolusVM, cPanel, WHMCS, etc)

Identify - Pick where you want to start from your list. It's best to select only one location at the start and a handful of niches to target. Also, make note of the provider you've picked and any software which you

Plan - Yes, you really need to write it all down! Start with a simple business plan (some templates online if you need help, there's a handy "Idiots guide to writing a Business Plan" which is awesome too. Prepare a budget as well for the next few months. My guideline would be to have at least 6 months worth of expenses saved up / set aside for use. Plan out your site's layout as well.

Build - Assemble your company! Prepare your servers / install software, configure as needed, create plans / packages, integrate as needed and build / add content to your new site.

Finesse - Fine tune everything by doing double checks to ensure nothing was missed. This includes proofreading, grammar, mistakes in configurations, etc.

Launch - When ready, open up to the public! Advertise your services to the rest of the world.

 

[drmike]

Dedicated Server(e3-1270v2, 32gb ram, /26, 4x 500gb ssd OR 4x 2tb (same price), 1gbit port) : $120 (+ a discount I've been offered if I sign a 3 month contract it brings it down to $89/mo)

 

Ahhh, which shade tree operation is offering 4x 500GB SSD's + 32GB of RAM server for $89/moth?  That has to be with both a contract (annual or longer and cash money up front buy down).

 

[365Networks]

Considert taking a Business or Entrepreneurship class at your local school or college, that will greatly assist you with managing money and the hustle and bustle of running a business.

 

[NodeDeals]

With just $400, you need a seriously awesome business plan. Figure out how you can attract customers away from already established VPS providers and what you can do different! Trying the same old model won't work and you won't get sufficient return in 3 months, if ever you get any...

 

[NodeDeals]

offering 4x 500GB SSD's + 32GB of RAM server for $89/moth

:blink:  :blink:  SERIOUSLY?!?!

 

[concerto49]

Ahhh, which shade tree operation is offering 4x 500GB SSD's + 32GB of RAM server for $89/moth?  That has to be with both a contract (annual or longer and cash money up front buy down).

Maybe basement DC? I wouldn't buy it. Maybe uptime 0.1%.

500GB SSD. Sounds like Samsung 840.

 

[netnub]

Maybe basement DC? I wouldn't buy it. Maybe uptime 0.1%.

500GB SSD. Sounds like Samsung 840.

99.9% uptime **

No basement DC, its called I sign a contract + pay a setup fee ($600 setup fee).

 

[AnthonySmith]

I will give you the same advice I give everyone that asks this, and this is from experience.

1) Don't do it part time.

2) Make sure you have 18 months costs minimum in advance.

 

[RootNerds]

2) Make sure you have 18 months costs minimum in advance.

This. And also , you should know how to calculate cost and income realistically in advance. It's an stupid idea to start with 5 dedicated servers when you can't even fill one. 

 

[Zen]

My advice, to someone who truly has the necessary skills to pull it off:


1. Register as sole proprietor (get an LLC when you know you can sell, until then that's capital better spent elsewhere)


2. Rent smart. No one cares about hardware if the network is terrible, and this is too often the corner people cut. No one wants 900mb/s IO if they can't even host a website. Take your time, do not rush this. If everyone you ask tells you that your choice is terrible and you're going to regret it, don't be like me and do it anyway....FDC Denver.

I might ask, who was one of those people?

WINK WINK

 

[jarland]

I might ask, who was one of those people?


WINK WINK

Yep! Haha


I hope like hell that in the end people can at least say of me "Well, the guy was honest, even when he was stupid."

 

[Zen]

Oh yeah, some people would have decided to stay. I'm glad to see you realised At least when it was 'happening' (the decision that is) I could tell you were making an honest mistake, if you were indeed making a mistake (it was 80/20, since FDC can pull through sometimes..)

 

[VPSDATABASE]

From personal experience I went from saving up on selling only Shared hosting until I had around $150 or so buy a dedicated server and sell vps and still do shared hosting.

From there I expanded into more dedicated servers and locations.

The main problem now is that I only profit $300 each month from this. 

Not very great profit, it takes couple of years until you see a 3,000 profit of net income. 

The main reason you don't make much is because ;

- Paying for SolusVM License

- Paying for dedicated servers

-Paying for the IP's

and so on.

Little history of my business ;

• Started shared hosting, for a forum
• Got into Reseller hosting so I could explore more and maybe make few bucks here and there.
• Bought license for lifetime, like WHMCS
• Used Reseller for 3 months
• Got my first VPS and installed cpanel.
• During my VPS era I started to buy lifetime license I needed "plugins" and all that good stuff.
• I started to see a net income of only $30 each month
• I then waited until I could have some money saved up and feel proud
• During November I got a job and then decided, if my hosting doesn't make enough money to pay the fees ill just use my working money to pay for them.
• Got first dedicated and didn't put any of my own money because I sold VPS and made good profit and the netincome was only $50
• I then started getting more orders and had to upgrade.
• And this has been going on since November.
• I am now having a net income of $300
• I have been getting a lot more knowledge each other day from running a online hosting business.

 

[concerto49]

99.9% uptime **

No basement DC, its called I sign a contract + pay a setup fee ($600 setup fee).

Well that's a whole new game. That's not the price quoted. You have to add setup fees to the cost and try to work out how much that adds to the monthly cost for cashflow purposes etc.