Becoming a web hosting proving is getting tougher and tougher each day. With so many competitive and established providers, new providers don't really get a chance to get customers. They cannot make any profit from it as they really don't know much about "where to begin", especially the advertising part.
Advertising:
Buying a reseller hosting or a vps or a dedicated server and setting it up with with a website is the easy part. Getting customers is the HARD one. I myself ran my company with loss for over a year and then started make some profits.
Spending Money:
One have to spend a lot of money at first to start their own web hosting company. Server/ Reseller account cost, Control Panel software, Billing software these are the basic things. Even if you start with Reseller account, say $25 per month with free billing software provided, you can't really make much profit with it as it comes with limited resources. One eventually decides to upgrade to VPS, so now they have to pay VPS rental ($40), Control Panel rental ($15) and billing software rental ($16). So the spending jumps straight to $70 from $25. And I haven't even mentioned paid advertising yet.
Competition:
Now a days, Its like every person is trying to start their own company, and believe me, 90% of them fail to continue their services due to loss of money and time. Their are huge competitors out there. So one have to provide services and give exceptionally good support to their customers to succeed. Service cost is another thing to notice, people won't buy hosting at higher or even at the same rate as another established company as they would like to go for the one that they know of unless it has bad reviews.
Patience:
A lot of patience is required in this field. People often get impatient and close their services. You won't be making profit from day one. You will have to wait, you also have to suffer losses during the startup. Its all part of it. If you don't have patience, this might not be the perfect business for you to start with.
Stability:
Once you start getting some customers. You can't be casual about it, you have to monitor the servers well, and maintain the same high level of effort in advertising, spending and providing support for your customers well. This step is maybe the hardest of all listed above but without it, a web hosting provider won't be able to make their path to SUCCESS!
Thanks for reading. English is not my native language, Please excuse me if I made any mistakes. Feel free to share your point of views as well.
