InsideWH - A Web Hosting Insider

Tags: Hosting business, Web Hosting Business, Webhosting budget

Many of us wonder if there is a ‘right’ budget to start the web hosting business, for many obvious reasons. If you search through forums for budget related recommendations for starting a hosting company, you will find that there are hundreds of threads discussing the exact same point.

Is there something that can be called as the right budget?

I don’t think so! One can not decide upon a budget and call it the right budget. There are many factors that go into deciding how much should the initial budget be and it differs from person to person. Some choose to start on reseller accounts for as low as possible, while some buy their own server to start their business. So, what budget is right for you? I think that’s the right way of looking at your budget.

Budget recommendations and factors for starting a web hosting business

• Don’t straight away buy couple of servers to get started with the business. Have a plan in place as to how you want to use the servers and what packages will be placed on which servers. For many, a reseller account is more than enough to start the business. If you already have clients waiting on you, it might make sense to buy/rent servers. Otherwise, think of a reseller account.
• Don’t buy multiple reseller accounts at once. At the most, I recommend, you buy a Linux and one windows reseller account. Keep the remaining money for advertising your hosting business on Internet.
• Don’t spend all of your money in advertising in forums. Those are the best places to get clients but you should try other places to advertise your hosting business. Some work out much cheaper and get you more clients.
• More money invested to start the business does not mean that you will get more clients and more profits in return.

Think of all the factors and the amount of money you will need to keep your business running for several months before you will break even. Don’t invest a lot of money while starting the business, plan for future and invest wisely.

Share This

Subscribe to InsideWH by Email