So you have decided you want to start your own hosting company and become the next VPS.net? Congratulations for your enthusiasm! However, if your reasons for starting a webhosting company are unfounded, then failure becomes a near reality, rather than an educated risk.
Many businesses fail before I started, because they are based on incorrect assumptions or simply founded for the wrong reasons. Incorrect assumptions could be rectified through business planning, which I will cover in future articles. This article will focus on the right reasons to start your web hosting company.
In order to have a web hosting company with success, three factors must be present: the market’s needs, abilities and passion:
Before you start your web hosting company, you have to think if there is a real need for their service, that is, if someone is really interested in buying your service. If you are trying to sell sand in the desert, then your idea is obviously bad, because the sand is available throughout the desert, and for free!
For example, creating a website that offers shared hosting, resale hosting and dedicated servers, while waiting for customers to come in a very bad idea. Why? Because there are thousands of web hosting services and reputation which they are, are able to offer better service, and can be profitable at a competitive price more. Would you rather buy a VPS from vps.net server or hosting service operated by an individual unknown stranger from a strange place?
The answer lies in differentiating their services, while ensuring there is still a market need for them. You can differentiate their services by focusing on a different group of customers (engineers, not for profit, local customers, customers who speak Spanish …), which provides added value to their services (web design free marketing report free basic SEO package …) or a mixture of both. I’ll take an in depth look on how to differentiate their services in later articles. For now, note that you will have to stand-out and brightness to make a difference.
Do you have what it takes to operate your business? Being technical enough to run a web hosting business is no longer a qualifying match. These days, with hosting providers as offering VPS.net 1-click hosting options, the barrier to entry has become much lower for non-technical people. Based on my previous experience as a 6-year owner of the hosting company, here are some of the most needed skills:
People skills: Even if you are thinking about starting an online business hosting, you still have to have the ability to deal with people. Whether you’re supporting your customers, communicating with their employees or their upstream providers, you must use your communication skills. So if you’re someone who prefers to be alone, and do not like talking to people in great measure, then web hosting is probably the wrong business for you.
Marketing skills: no matter how great service you offer, if you can not communicate the value we are offering to your prospects, you will not have a lot of new entries. You will need to communicate what makes you different from web hosting providers differently, and why customers choose them over other vendors. I’ll write about this in a later article, but you need to know that communication skills are a must.
Expertise: It is not necessary to be a technical person, but also need to know the difference between the technical terms, such as FTP, HTTP, browser, server … Customers use these words when communicating with you, so you never need to understand them.
If you are becoming a hosting service just for the money, then you are doomed to failure. To succeed as a hosting service, you must be doing to make a difference around you, so that keeps you satisfied and looking for more. Ask yourself the following questions:
Why I’m starting my web hosting company? What difference am looking to create?
How will my customers be able to better once you start using my service?
If not for the money, which is still being done?
It is fear driving my actions, or passion?
If you can answer positively to the above questions, then you have the passion needed to start your own hosting company.
Now that we have determined the reasons to become a hosting service, the following articles will cover topics to help you take your web hosting company from an idea to a success.