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How to Start Web Hosting Business

August 1, 2009 No Comment

Web hosting helps every small and big business to operate via the world wide net. Small business need web hosting plan which is not too expensive. This would help fledgling companies to get a platform for world wide exposure. The process of web hosting is similar to that of shared hosting. Here one particular server is in charge of over 100 accounts.

If you wish to create web hosting business you need to know the ways. Strive to provide an inexpensive platform for all. This does not mean that you would offer cheap quality or options with fewer features. Once the word gets around that you don’t compromise on quality and provide excellent business web hosting services for less money, you can look forward to some brisk business.

How to Formulate Web Hosting Business Plan?
Creating a reliable web host plan is of great importance to your business. When you formulate a plan, always remember that avoiding additional expenses is essential in all respects.

Office location
This is one of the few businesses, which allows you the luxury to work from home. To start this business from home all you need to have is a computer and with broadband connection. This will significantly lessen your start up costs. Having an expensive lease for office space right from the word go will bleed you through the nose and is something which you can do without.
Server Hardware
As your efforts should be to bring down the costs, it is wise to start with leased hardware. With no customers and no income buying servers makes foolish business sense. When you buy servers, you also need to buy a network switch, even a remote reboot console, and a hardware firewall. All these expenses should be staved off in the beginning. Instead hiring two servers in the beginning will serve the purpose completely. It also gives you an idea on what it takes to work with dedicated servers and find out on trial basis which co-location can be the best option for you. If you decide without experimenting, you may end up doing the wrong thing and therby find it difficult to reverse.
Of the 2 servers dedicate one to the business setup only. This is for security and stability purposes. You can use the server for backups. The second server would add more stability to your setup.
Server Administration
It is wise to outsource this task and focus on your business instead. If you have linux administration experience you may do it otherwise. Avail monthly plans offered by many server support companies. They monitor your servers for 24/7/365. With the help of server setup available with these providers, you do not have to worry about the initial setup and lockdown.
Billing and Customer Management Software
It is unwise to restrict your growth, with a spreadsheet and a self-build sign-up form for managing customers and billing. A proper setup can always be hassle free in the long run. You can choose between recurring monthly fees or one-time fees for an owned version. It is better to choose the owned version with the 500 client package. It allows you the freedom to grow with no upgrading.
Helpdesk Software
Commit yourself to a helpdesk software rich in features. This will enable to self-serve customers to a certain degree. The more you automate the less you have to spend money on support issues. When you spend money on the right product you save lots on future expenditures. Kayako’s eSupport helpdesk software for instance is very helpful. You can safely go for it.
Credit Card Processing Services / Merchant Account
A credit card merchant account is of paramount importance. Choosing one will depend on your personal credit situation and company setup.
Other Startup expenses
Get yourself registered as per local laws. Have a website and book a domain name. Your website must be SEO friendly. Your website must have persuading content.