Before You Start
Before you really say you've got a solid plan to start a web hosting company, ask yourself -
- Have you targeted the best segment?
- Have you thought about a back-up plan?
- Have you consulted any of the industry experts?
- Is this business plan/model sustainable for at-least next 5 years?
- Are you little too worried about the initial investments?
Thinking Beyond the Shared Hosting MarketBasically, everyone tries to target the shared hosting market, takes a reseller hosting account with a big player such as GoDaddy, JustHost, FatCow, HostGator, LunarPages and the likes of them, and finds few clients to kick-off a web hosting business.
But, the sad part of the story is that neither they bother to check the competition in the market, nor do they think about the other potential segments such as business web hosting, or dedicated server hosting.
Sure thing, you may not be in a position to spend a lot of money, and set up your own infrastructure right away, but this doesn't mean you need to target a different market altogether.
Getting StartedIf you can take a Virtual Private Server (VPS), or a dedicated hosting account, you can easily start corporate hosting services just by getting a professional website designed for your company, and doing fair bit of promotions early on.
Secondly, folks are reluctant to try out hew shared hosting providers in the market these days, as the top guns have already grabbed big chunks of market-share, leaving very little for the small businesses.
Give Your Customers More Than Just Web HostingIt's always a good idea to start a web hosting company keeping website design, and search engine optimization a part of your services. It allows you to offer just the perfect package that most clients need - website design, web hosting, and SEO; all that one needs to create an on-line identity.
Basically, you're more likely going to find clients that need websites for their businesses, and they're ready to pay for website design, hosting, promotion, and maintenance; this model will always give you recurring business, and in turn greater profits in the longer run.
Prepare Yourself Before You Make the First MoveLast, but definitely not the least, make sure that you do your homework of setting up customer support, and technical support team, a professional looking web-site, and all the payment options integrated into it.
The key to starting and running a successful web hosting company is not just to grab lot of customers, but to retain the majority of them in the longer run. Be sure to talk to one of the industry experts to analyze the major challenges, and current level of competition in that market before really stepping into it.
Remember, first impression is always the last impression - if you mess it up early on, you'll really have a hard time gaining credibility in the market.
Giving out freebies, and running promotional offers during the launch phase helps a lot - so do it without really worrying about your profit margin early on.
I'm sure you'd be able to start a web hosting business lot more smoothly by taking these points into consideration, and planning things rightly rather than simply jumping into it, and hoping for things to work in your favor.