How Much Capital Did you Start with?

B

BlackStorm

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How much capital did you start off with for your hosting company?

Did you get everything before you started, or did you buy the things as you grew and needed them?

Do you think more capital is needed these days when getting started with a new hosting company?

i think its a lot harder to start a hosting company now than it used to be because the market has so many hosts.
 
Hi John :D

"How much capital did you start off with for your hosting company?"

A: You won't belive me but I started on a Free Hosting Account :p after a Month I received my First 2 Clients. After I received those I Invested on a Chat Program for Live Help, after 1 month I received my More Important Client (He has 3 Servers with me) and when that Happened I went to an AMD 1700 that I had Online and moved my Site, 14 Days later another Guy camed around, another Server Gone :cool: , Invested in a P4 2.4Ghz with HT and ModernBill, after that I went to stablish my Merchant Account with Authorize.net to have my Name on the Statements "MATRIX INTERNET SOLUTIONS" :rolleyes: and maybe Expand, so I would not only take PainPal ;)

As from now, I'm still making some Profit after all those Montly Fees ;)

Soon, I'll made a Crazy Deal, I'll get more People to work as Support and Grew, I'll start my Advertising Campaing and the Rest is State Secret :D



"Did you get everything before you started, or did you buy the things as you grew and needed them?"

A: When I needed it ;)


"Do you think more capital is needed these days when getting started with a new hosting company?"

A: No, It was more back in 1998, now is Cheaper


The Hard Part on the Hosting Industry is to get clients, and make yourself Stable, People won't go with you unless you can prove you have been 6 Months up...

Cheers,
Francisco
 
Things are cheaper now - I started with what at the time was a low-cost package and a different domain name that doubled for design & developement, so one helped the other.

Now it's a case of pick the best you can that won't scare your clients as any price increase is seen as a sign of trouble.

So initially it was built bit by bit (pardon the pun) before I even knew what it would progress to.

Now it's a bit of forward planning and purchasing in advance. No point in welcoming a new client and saying I'll get back to you when I've bought your server. :rolleyes:
 
Well i partnered up with a buddy so we split the costs :) We jumped right into it with our own server to start. Skipped the reseller process. Our first server was a P4 2.4ghz with 256mb ram. (it has been upgraded to 1GB)

We bought a fair ammount before we opened, we got our server, whmAutopilot (couldnt afford MB), perldesk, Vbulletin, merchant account.

But we upgraded as soon as we started getting money to allow it.
 
Francisco, did you get a free hosting account and host people from that with a subdomain ;)

Did you lose much money in the first few months Nick with the fees for the server etc. without having any clients?
 
John Diver said:
Francisco, did you get a free hosting account and host people from that with a subdomain ;)

Did you lose much money in the first few months Nick with the fees for the server etc. without having any clients?
Click to expand...

Heh...

I was not hosting, I was offering only Dedicated Servers, I sold my First 3 and then I started Upgrading :)

Cheers,
Francisco
 
Well when i signed up for my first server the datacenter was running a special where if i signed up i got the rest of the month free.

So i got my server on the 10th and didnt have to pay again for 50 days. (Does that make since?)

So i spent the first free month setting up the server and site and stuff, then opend.

I only lost very little for the first 3 months then i was making a profit already.

When i say very little it was like $10/month for 3 months so only like $30
 
Just starting writing I didnt know what you mean that you got the first month free but didnt pay for 50 days when I worked it out myself :rolleyes:

Guess that worked out pretty well for you and would have really helped to get you started!
 
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