What do you think people should consider before starting a hosting business?

BlackStorm

New member
Hey,
What do you think anyone considering starting a hosting business should think about before taking the plunge?
I am writing an article for HR at the minute which is about this, helping people decide if hosting is really the business and work line for them.

A lot of people seem to be interested in becoming hosts recently but many don't consider what is involved in the hosting industry and what is expected of them from customers.

I would like to hear the thoughts of other members and I can add this into the article if I think it is an important point
 
Ok you asked for it, I wrote up a similar article for my SCB group so will just paste it here and you can pick it apart, Have fun John :)

Why will some people want to become hosting providers?
This is a tough question but not one that isn't hard to answer just one that has many different answers. Some do it because they own so many web sites that it is cheaper for them to own the business rather than buy it elsewhere. Some have family members that like to do everything together so they buy a hosting business. Some just want a business from home and this allows them that. So as you can see the reasons are varied and many.
Is it right for you?
This one is much easier to answer. If you just plan on hosting web sites from your home and not running a company with other employees, then these are some questions you may want to ask yourself.
1. Do I mind being on or near my computer about 18 hours a day?
No it isn't that bad. You have to realize though that the internet being what it is your customers can shop 24 hours a day. If you are not available when they come calling they will shop elsewhere rather quickly. This doesn't mean you have to be chained to your computer but you will have to manage your time very efficiently when you are on. You will need to be there for your existing customers as well and yes it is YOUR job to make sure they have those questions answered. This doesn't mean you have to build the site for them but you must answer questions about everything that has to do with their service with you.
2. Do I have enough knowledge about web services, hosting and design?
Many think hosting a business or client is just a matter of setting up a few things and you are finished. Nope doesn't happen that way, You will be continually having to learn the business because it is always changing. You will have to keep on top of your servers even if you are a reseller. If you don't know where to find answers to things that may come up you will spend a lot of time looking up the answers. So be at least aware of the services you offer and how they work. If you are a reseller, know how to get in touch with your host when things go wrong. Keep those phone numbers very close by. Don't be afraid to let you customers know if there is a problem and keep them informed of changes and upgrades that affect them. You don't have to know everything but you will need to know more than just basic things about your servers, cpanels, bandwidth, the list just goes on and on.
3. Will your family be supportive when most of your time is spent helping customers?
Even with the best managed time, you will have an occasional emergency or two, server goes down, sites go down, customers need help, what ever the case may be some days you will have to put your business before your family outings and this may cause strife in some families so work that out before you take this on. This is not a job you can leave at 5pm and forget about until 9am tomorrow.
4. Do I have patience and find enjoyment in helping others and problem solving?
Remember many of your customers may be new to the internet. Your servers will occasionally have a glitch. Things may go down that have nothing to do with the service or servers and you will get 100 e-mails asking who, what, when, where and how. You will be asked about everything and anything and you should have the personality to love this type of work. If you don't like problem solving this may not be the business for you.
5. Do you have a back-up plan if you get sick or injured so your customers will be cared for?
You will get the flu, kids may get sick, injuries may happen. Do you have the type of clients that will support you being out for a few days. Do you have someone else in the house knowledgeable enough to notify your clients if something goes wrong or even someone that can run it for you in case of a long term illness. In this business, 1 week is a long term absence, 2 weeks you may be out of business. People and friends are understanding and forgiving but not if it affects their business.
There are some companies out there that you can hire to handle things when you can't, this is all they do. They offer you a support desk so that your clients can have questions answered 24 hours a day. These companies are not cheap but they are worth every penny when you need extra resources.
Just be sure to do some research as some of these companies are not as good as others.
6. Will I want to do this everyday for the rest of my life?
Now realistically no one works one job or business their entire life. And so when you are ready to retire from this business you would treat it as any other business, you would notify your customers within a reasonable amount of time that you plan on retiring and selling the business and yes you would sell it. Your customers still need their web sites especially if they run a business. Many of them have pre-paid for a year or more so make sure you let them know. Then sell it to someone or another company only after researching them thoroughly and making sure they will suit your clients needs the best. Give at least 6 months notice to your clients and offer them refunds if they decide to move elsewhere as well as helping them with the move. Your reputations is everything, make it a wonderful long lasting one.
There are so many more questions you would have to ask and answer based on your own personal life these are just a few to get you thinking about it.
Do you want your own servers or do you want to rent them?
Are you knowledgable enough with computer servers and maintenance? Do you know the languages needed to run your server, Is your home equipped with the necessary tools and ventilation systems to maintain having your own servers? Most homes aren't, at least not enough to support more than one. Are there computer technicians that will come by around the clock if you don't have the knowledge to fix your own hardware. If you have your own server that you sell space from in your home, who will monitor everything around the clock, if you can't you will have to invest in some equipment that will and people that can.
Other alternatives are renting a server or co-locating one with a company that can manage your servers for you. This is an optimal option and one that I use. But you must make sure it is a company that cares about the business and has the technicians to manage that end of YOUR business. If I call you up with a problem, I don't want to hear that it can't be fixed. Their is absolutely nothing that can't be fixed even if it means getting a new server. That will fix just about everything.
Becoming a Re-seller?
So you are thinking of starting small and seeing if you can do it, well then becoming a re-seller is probably your best bet.
The things to do are to research companies that offer re-seller services. Find out:
* What the companies policies and guidelines are.
* What is the uptime of their servers.
* About how many re-sellers or accounts will they put on one server.
* If you quit the business, will your clients revert to them or what happens to them.
Some of the many ways to do this is to ask them directly. You can also see if they offer a forum so you can see what other customers are saying as well as having a resource if you need help. Ask what kind of support desk they offer and is it available at all time.
Once you decide on a company have everything set up and then take a few days to really get to know all of the ins and outs of your business, how to set up accounts and monitor your server. Get together the welcome letters and such that you will send to new clients. Visit forums and read what others are doing.
Just remember you can never go wrong if you continually learn all you can daily about how to run your business you will always be a step ahead of those that don't. You couldn't be a good Doctor or Nurse if you didn't continually update your education so don't let this business be any different. If you love doing what you do on the computer and want to share it and have patience and time, then this may be for you.
 
Or the short form:

To start with, they should consider if they're the kind of person who wants to run a business - with all that entails.

Do they want to take care of the bookkeeping? The sales? The marketing? The engineering? The customer service? The ongoing legal aspects? (Either doing it themselves, or outsourcing it.)

Are they the kind of person who is temperamentally suited to being an entrepreneuer? Are they the kind of person who can pay attention to a business and make it grow? Are they self-motivated? Can they work on their own, with no one to consult with except in the loosest of terms? Are they genuinely excited about constantly learning and trying new things?

Grab almost any entrepreneurial book about starting your own business. Most will have some sort of quiz to help you determine your underlying attitudes, strengths, and weaknesses, and help you decide if you want to become a business owner. People should really, really, really take these things.

I don't know which types of problems are more prevalent: problems that crop up because people don't know how to be a good web host, or problems because people don't know how to be a good businessperson.
 
You need to consider the time involved. This is a 24/7 business and when stating alone can be hard on a newbie host. Budget and plan accordingly.
 
one should strive to organize the business well and avoid advice from people who say a business plan is a must.
 
Whether they can handle their clients demands.
Whether they are actually offering quality products and services.
 
Handling clients demands is an excellent point! Hosting is a very demanding profession for a company. Websites and people are always awake around the globe. It isnt a 9 - 5 business although your staff can work regular 8 hour shifts :) Still demanding to keep that big wheel turning though.
 
Hello.

What bothers me is that my friends and family think hosting involves setting up an account and then going out and having fun for the rest of the day.

Most people do not realize that web hosting is a 24/7 business. Are you willing to put in enough time...or better yet, do you have enough time?

Don't get me wrong, this isn't the only thing involved, but it's definitely one of the major aspects.

Regards,
Zeeshan
 
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