Hard Times

IkY0294

IkY0294

HD Addicted
Hey All, I figure out the hard way As I think it is.


My company PerfectedHosting.com was really the only company that I really owned to my name and all. Now sins the day it went up I thought everything was going to work out, After all look what happens my company just shuts down. I had only gotten one client and yes only one witch I didn't even bring in.

I was running the company on my own and coding and paying and doing everything that a stable company need to do now but some peple out there have them special abilities where they can do a lot, Im just saying it was nice knowing everyone and meeting new people but I think personally this industry isn't for me. OR I might just leave for a while and come back. Im going to do some research on hosting in the next few months and maybe work for a small company where I can learn...


Thanks everyone.
 
This is no doubt a tough industry to be in, and it takes a lot of dedication and hard work to succeed. I wish you luck with your future endeavours.
 
Well, I don't think it is THAT complicated to figure out.

It comes down to how good you are in marketing. If you have a vision and interesting ideas, then your chances to succeed are better. Most people start small and start locally - advertising to local businesses is a lot more convenient and cheaper than competing for global attention online.

Nevertheless, having a healthy advertising budget and knowing what you are doing helps. You cannot expect for clients to come to you - you need to grab their attention!

The first clients are as tough to get as it is to earn your first $1 million. :) But once you have that base, it adds to your motivation to continue digging.
 
99.9% of hosts fail, imho, because someone thinks it's an easy business with low risk and they will make big money fast.

True. It is low risk for the host. Unfortunately it is not low risk for any clients these hosts happen to sign up.

Hosting is a business like any other. Without a business plan and without acquiring the knowledge necessary to sustain the business, you will fail.
 
Unfortunately, that's how it is in business, and that's cross industry as well. The best to you, Gregorio, in your career.
 
I think you better hire people to help you. But that's the business, others will have the luck in success but others fails. But don't give up, I think there's other business that is for you.
 
I'm sorry to hear that, but as others expressed, it's common and even expected in this industry. While I'm far from the wisest on the topic, I do have some suggestions based on my own experience: A few years back my 1st business(hosting) completely tanked after investing a year(full time) and roughly $65k out of my own pocket, but I wouldn't trade it for the world! It would've only been a failure if I'd given up and not learned from it.

While I'm sure you'll want to back off for a while to compose yourself(good idea), don't give up. Take the time to define and understand your strengths and weaknesses. Then in a few months, year, etc. you may be ready to reenter the industry with all your newly developed wisdom :)

Best of luck & stick around the forums :)
 
With only the one client being brought into your business, where do you think the failure was in obtaining new clients? Were you advertising? Were you communicating with people?

Web hosting is not easy - it's a brutal, cut throat, saturated industry where you do not compete on a local level, but on a GLOBAL level for business. It's one of the few businesses that whether you're on a $100/month budget or a multi million dollar budget, you're both after the same customer - makes for really interesting (and fun, if you're into it) marketing and strategy.

My biggest issue with any host or person who operates a company of ANY type is communication and proper grammar. While here in the forums, you are among friends, you are also the face of your company and potential customers can see that too.

The web hosting industry is made up of thousands of people trying to get more business, many of which are one man shops. My biggets gripe with MOST one man shops is that they don't disclose that to customers. They use the plural when discribing services such as "we" and "our" and "us" when they really should say "I" or "my". You'd be surprised just how many people will sign up with a one man shop if support and dedication is there. It's how I started, it's how MANY of us start.

That said, I wish you the best - take a break, re-evaluate what you did, or didn't do, and how to approach it differently. Attend the Web Host Boot Camp in December (http://www.webhostbootcamp.net/ ) - learn some new ideas and see how you may be able to tackle the business down the road.

“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” - Colin Powell
 
These things take time, as mentioned above.

Starting off a host is never easy, especially since there's so many clients out there who will only go with established hosts.
 
IkY0294 said:
Hey All, I figure out the hard way As I think it is.


My company PerfectedHosting.com was really the only company that I really owned to my name and all. Now sins the day it went up I thought everything was going to work out, After all look what happens my company just shuts down. I had only gotten one client and yes only one witch I didn't even bring in.

I was running the company on my own and coding and paying and doing everything that a stable company need to do now but some peple out there have them special abilities where they can do a lot, Im just saying it was nice knowing everyone and meeting new people but I think personally this industry isn't for me. OR I might just leave for a while and come back. Im going to do some research on hosting in the next few months and maybe work for a small company where I can learn...


Thanks everyone.
Click to expand...

handsonhosting said:
With only the one client being brought into your business, where do you think the failure was in obtaining new clients? Were you advertising? Were you communicating with people?

Web hosting is not easy - it's a brutal, cut throat, saturated industry where you do not compete on a local level, but on a GLOBAL level for business. It's one of the few businesses that whether you're on a $100/month budget or a multi million dollar budget, you're both after the same customer - makes for really interesting (and fun, if you're into it) marketing and strategy.

My biggest issue with any host or person who operates a company of ANY type is communication and proper grammar. While here in the forums, you are among friends, you are also the face of your company and potential customers can see that too.

The web hosting industry is made up of thousands of people trying to get more business, many of which are one man shops. My biggets gripe with MOST one man shops is that they don't disclose that to customers. They use the plural when discribing services such as "we" and "our" and "us" when they really should say "I" or "my". You'd be surprised just how many people will sign up with a one man shop if support and dedication is there. It's how I started, it's how MANY of us start.

That said, I wish you the best - take a break, re-evaluate what you did, or didn't do, and how to approach it differently. Attend the Web Host Boot Camp in December (http://www.webhostbootcamp.net/ ) - learn some new ideas and see how you may be able to tackle the business down the road.

“There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” - Colin Powell
Click to expand...

Great advise, Conor. :)

Gregorio, I'm sorry your first business venture didn't work out as planned. But, as many have already said, do NOT give up. Use this experience as a learning tool for the future.

Remember..Winners don't quit, and quitters don't win. ;)

I wish you the best.
 
Best of luck greg. Your still young and in school. If was you I would live up the social life before you start a company. You are very smart for your age and will do fine in life.
 
Hi!
I know it's a hard lesson to learn..and..no matter what..you still want to hope things will go better..if you just hang on. Sadly...many times it just simply is not so.

First and foremost..I think it is impossible for one person to do this (and do it right) doing this part-time.

In theory..it seems like a wonderful idea. Reality is simply not so. I think any "part-time"ers are doomed to fail.

Sadly..one really needs to learn the difference between a dream and a pipedream.

It's ok to have a dream..everybody has them. In fact..it's these dreams that keep us working..keep putting in the horrible hours we do put it. Pipedreams are something bad..no matter how much money or effort..there's no way it's going to work.

I have seen many hosts whose pricing structure is simply not feasible. It does not pay for the servers. It does not even begin to pay you or anybody else for their time. It is not realistic. No matter what..it's just not workable.

I have seen many hosts get one thing right..say..marketing..but miss out on billing and support.

Get support right..and server management right..and miss out on marketing. To succeed..to be sustainable..all pieces must be there. sadly..nobody can do everything at the same time...and do it right.

Therefore...it must be said that a one-man shop needs to be a two or three man show very soon. Outsourcing is critical..but choices..choose your people very carefully.

There's a lot more..but..this is a very good start.

Bryon
 
Try webhosting with MLM. Then you have two income streams.

IkY0294 said:
Hey All, I figure out the hard way As I think it is.


My company PerfectedHosting.com was really the only company that I really owned to my name and all. Now sins the day it went up I thought everything was going to work out, After all look what happens my company just shuts down. I had only gotten one client and yes only one witch I didn't even bring in.

I was running the company on my own and coding and paying and doing everything that a stable company need to do now but some peple out there have them special abilities where they can do a lot, Im just saying it was nice knowing everyone and meeting new people but I think personally this industry isn't for me. OR I might just leave for a while and come back. Im going to do some research on hosting in the next few months and maybe work for a small company where I can learn...


Thanks everyone.
Click to expand...
 
The industry is a very hard one to be in with so much competition you have to find something that makes you unique, and unfortunaly its very hard for new hosts as they don't yet have the reputation for clients to trust you.

I always set out when starting something like a hosting company to break even in the first 6 months, if you manage that your doing something right.

Then in 12 months you should be on to a nice profit.

Unfortunatly many hosts don't make it past a few months and this in turn then actually makes it harder for other people to compete.

Learn from you actions and mistakes as we all do.
 
Hi!
Another thing that is rarely mentioned in a thread like this is the fact timing and simple good luck helps as well.

Timing is critical in many situations..as many of us now there are clearly "bad" times to try and get into this business.

I think the worse attempts I have seen lately simply do what someone else did..in the hopes of following in their "success". This is simply not possible..and is doomed from the get-go.

No..you don't have a chance if you don't offer something different...something people need that others do not.

Worse still...even if you offrer the best hosting service in the world..if nobody knows about it..well..what do you think is going to happen?

Bryon
 
Bryon is right, but how do you differentiate yourself when webhosting is webhosting, other than features and or price?

I am seeing you do have to be a master internet marketer for this business. I look forward to learning from everyone around here. I've already picked up some good ideas.

Mark
 
The key for differing yourself will be the content you provide on your site, the level of support that you employ for your customers, and the friendliness of staff (and helpfulness to resolve an issue).

You'd be surprised just how little marketing you really need to do. If you can write good content for your website, you'll be picked up and noticed by many places. Don't get me wrong, NO MARKETING it like opening a storefront (brick and morter), not paying the money for a sign, and then questioning why people dont' just stumble upon your store.

The thing to keep in the back of your mind is that this is a web hosting business - BUSINESS being the key word. Standard practices in operating and running any business need to be employed even if you're an online only location.
 
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